Fwd: M & M Financial Services Q2FY12 Result Update; Results inline with expectation; Buy; Target: Rs800

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Deepak Vaishnav

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Oct 30, 2011, 12:48:55 PM10/30/11
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M&M Financial Services

Results inline with expectation

 

BUY

 

CMP: Rs640                                       Target Price: Rs800

n     MMFS’ results inline with expectation with NII at Rs3.3bn and net profit at Rs1.0bn

n     NII grew by 22.8%yoy to Rs3.9bn driven by 32.4%yoy growth in value of asset financed, albeit NIM’s contracted by 207bps yoy to 9.9% (although increased qoq by 61bps)

n     MMFS’ asset quality improved with GNPA ratio coming down from 4.6% in Q1FY12 to 4.0%, while NNPA ratio  remained stable at 1%

n     Lowered FY12E/FY13E NII estimates by 3.1%/3.4% adj for the securitization inc. However with lower opex and prov,  earning remains unchanged. Maintain BUY with PT of Rs800

 

Regards,

Kashyap Jhaveri

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : kashyap...@emkayglobal.com 

Board No. : +91-22-6612 1212 | Extn. : 249 | DID : +91-22-6612 1249 | Mob : +91-98202 41712 | Fax : +91-22-6624 2410 |

 

 


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M and M Financial Services Q2FY12 Result Update.pdf
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