Friday, July 11, 2025 | 09:58 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

M&M Financial Services' return on equity may improve by 300 bps: Analysts

Good demand from rural markets to keep loan book growth buoyant and credit cost lower

M&M financial services
premium

Shreepad S Aute
Apart from the liquidity issue hurting most non-banking financial companies (NBFCs), tapering automobile demand has been a major concern for Mahindra and Mahindra Financial Services (MMFS), the non-banking lender that mainly finances new vehicles. As a result, MMFS’ stock has shed 24 per cent in the last six months, including the 10 per cent fall after lower-than-expected December 2018 quarter (Q3) results were revealed last month. Yet, many analysts are positive given the company’s initiatives and a supportive rural economy.

Original equipment manufacturers (OEMs), which are tied up with MMFS, have shown good growth in rural sales despite an overall