Mahindra Finance up 10% in 4 days; hits new high. Should you buy or hold?

Mahindra Finance outlook: M&M Financial Services management has indicated that the second half of the financial year 2025-26 (H2FY26F) will witness a sustainable revival in demand and asset quality.

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M&M Financial Services share price today

 

Shares of M&M Financial Services (M&M Finance) hit a new high of ₹339.65, gaining 3 per cent on the BSE in Thursday’s intra-day deals on healthy business outlook and stable asset quality.

 

The stock price of the Mahindra Group non-banking financial company (NBFC) was quoting higher for the fourth straight trading day, surging 10 per cent during the period. In the past six months, it has outperformed the market by soaring 32 per cent, as compared to 5 per cent gain in the BSE Sensex.  CATCH STOCK MARKET LIVE UPDATES TODAY

Should you buy or hold Mahindra Finance?

 

Mahindra Finance reported a 54 per cent year-on-year (YoY) growth in profit after tax (PAT) for the quarter ended September 30, 2025 (Q2FY26). The company’s loan book grew by 13 per cent YoY and disbursements grew at 3 per cent YoY. The company’s asset quality remained within the guided range, with GS3 at 3.9 per cent and GS2+GS3 at 9.7 per cent.

 

The management has indicated that the second half (October to March) of the financial year 2025-26 (H2FY26F) will witness a sustainable revival in demand and asset quality.

 

Though Q1 was muted, the later half of Q2 and beyond period, after the GST announcements has definitely seen a positive movement. With the positive development and the whole festive demand which the management thinks has been well covered, is expected to continue into Q3 and some part of Q4. 

 

Analysts at InCred Equities believe that Mahindra Finance is in the midst of recalibrating its strategy with a focus on streamlining the asset quality, while moving through a cyclical slowdown. The brokerage firm maintains 'ADD' rating on Mahindra Finance amid its favourable valuation with a slightly higher target price of ₹380 (₹360 earlier). 

 

According to analysts at Motilal Oswal Financial Services, Mahindra Finance reported an operationally mixed quarter, marked by muted disbursements and loan growth, largely impacted by deferred auto sales between mid-Aug and mid-Sep amid expectations of a GST rate cut. Asset quality exhibited a minor seasonal deterioration, marked by elevated credit costs, higher slippages, and continued higher levels of write-offs. On a positive note, NIM expanded ~12bp QoQ, driven by benefits on cost of funds and reduced leverage from the completion of the rights issue, the brokerage firm said. It reiterated 'BUY' rating with a target price of ₹350 (based on 1.7x Sep’27E BV).

 

Meanwhile, Mahindra Finance stock price has broken out from the bullish pennant pattern on the daily chart, said technical analyst Vinay Rajani. The stock is placed above all key moving averages, indicating bullish trend on all time frames. Indicators and oscillators have been showing strength in the current trend. The analyst has a ‘BUY’ rating on M&M Finance with a target price of ₹360, and a stop loss of ₹305.