Financial services

M&M Financial Services jumps more than 16% in July on strong business outlook

Shares of Mahindra & Mahindra Financial Services Limited (MMFSL) hit a 52-week high at Rs 206.85 (intraday) on BSE, gaining 3% in Tuesday’s weak trading on good trading prospects before easing higher. close at Rs 204.05 per share. The Mahindra Group company’s stock has surpassed its previous high of Rs 206.40 reached on November 9, 2021.

By comparison, the S&P BSE Sensex ended the day down 0.94% at 53,886.61 points.

So far in July (past eight days), the MMFSL is up 16%, versus a 1.6% rise in the S&P BSE Sensex.

As of June 2022, the company had recorded 115% year-on-year (YoY) growth and 27% month-on-month (MoM) sequential growth in disbursements to nearly Rs 3,750 crore, helped by winds favorable macro.

Disbursement since the beginning of the year, of around Rs 9,450 crore, has registered an annual growth of 145%. As of June 30, the company estimates gross business assets at Rs 67,500 crore, an annual growth of 6%.

“Stocks like MMFSL are expected to perform better over the coming trading sessions, alongside the ongoing recovery seen among sector peers. The stock has seen significant activity based on early April and May 2022 delivery at Rs 170-180 , which is a crucial support level. Given that the accumulation has been seen in this stock over the past week, we believe that the downsides are limited and the positive momentum should remain intact in the stock above the mentioned levels said ICICI Securities.

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