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Buy M&M Financial Services: Equity99

5 November, 2018 5:19 AM
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Buy M&M Financial Services: Equity99

The stock is trading at P/E of just 19.8x. It has paid 200 percent dividend for FY18. We are recommending a buy in staggered manner for medium to long term, says Sumit Bilgaiyan of Equity99.

M&M Financial Services is one of India's leading non-banking finance companies focused on the rural and semi-urban sector; the company has over 5.6 million customers and has an AUM of over $8.2 billion.

It has reported excellent results for Q2FY19, income has improved by 38.6 percent YoY to Rs 2,103.3 crore while PAT increased by 132.6 percent to Rs 381.4 crore as against Rs 164 crore. Disbursement grew by 39 percent YoY to Rs 21,194 crore. PAT grew by 78 percent to Rs 650 crore in first half of FY19.

The overall loan book of the company increased by 26 percent to Rs 554.82 billion in first half of FY19. At CMP, the stock is trading at P/E of just 19.8x. It has paid 200 percent dividend for FY18. We are recommending a buy in staggered manner for medium to long term.

Source: moneycontrol.com

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