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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
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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

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First Published: Feb 25 2019 | 10:42 PM IST

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