M&M Finance
M&M Finance
CMP: Rs 310
Target price: NA
Prabhudas Lilladher has assigned an ‘outperformer’ rating to M&M Finance, and has forecast an earnings per share of Rs 15.3 for the current financial year and Rs 20.2 for next year. “M&M Finance currently has a loan book of Rs 67.2 billion, growing at 18.2% year-on-year,” the Prabhudas note to clients says.
“The company has one of the largest network of 1,200 dealers (M&M and non M&M) across the country and its success lies in its ability to understand the rural market and its localised employee base, which speeds up the collection process. The company plans to replicate its success in vehicle financing business to personal and home loan segments as well,” the note adds
