1 hour ago
HomeMarket NewsAt least five upgrades drives Mahindra Group stock to best day in four years
For the quarter, Mahindra & Mahindra Financial reported a 24% growth in its core income, while net profit grew by 55% from last year despite higher provisions. The management also maintained its growth guidance of 16% to 18% year-on-year.
Shares of Mahindra & Mahindra Financial Services Ltd. surged as much as 8% on Monday, April 27, in response to their fourth quarter results that were reported after market hours on Friday. At least five analysts tracking the stock, upgraded it after the earnings.
This is the best single-day gain for the stock since October 2022. 24 out of the 38 analysts who cover the stock have a "buy" rating on the stock, 12 say "hold", while two have a "sell" rating.
Here are some upgrades that the stock has received after the results:
Brokerage firm Kotak Institutional Equities upgraded the stock to "buy" from its earlier rating of "reduce" and raised its price target to ₹350 from ₹340 earlier.
Avendus Spark has upgraded the stock to "buy" from its earlier rating of "add" and raised its price target to ₹380 from ₹366 earlier.
Another upgrade has come from JM Financial, who has revised its rating higher on the stock to "buy" from its earlier rating of "add" and also raised its price target to ₹350 from ₹320 earlier.
ICICI Securities has also upgraded the stock to "buy" from "hold" but left its price target unchanged at ₹355.
Investec has upgraded the stock to "hold" from "sell" and revised its price target down to ₹330 from ₹350 earlier.
Nomura has maintained its "buy" rating on the stock and has a target of ₹400. It said that provision overlays are in preparation of the new financial year and that its cost of funds advantage may wane.
However, the management delivering on margins, fee income and asset quality is encouraging.
On the flip side, Macquarie has an "underperform" rating on the stock with a target of ₹280 on the stock. It said that the elevated credit costs are due to an overlay and that the higher margins are also temporary. It added that the company's growth and Return on Assets (RoA) are lower than peers.
For the quarter, Mahindra & Mahindra Financial reported a 24% growth in its core income, while net profit grew by 55% from last year despite higher provisions. The management also maintained its growth guidance of 16% to 18% year-on-year.
Shares of Mahindra & Mahindra Financial Services are trading 6.9% higher on Monday at ₹314.7. The stock is down 22% so far this year.
