Mahindra & Mahindra Financial Services Downgraded to 'Sell' by MarketsMOJO

Mahindra & Mahindra Financial Services, a largecap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 10, 2024. This decision was based on several factors, including poor long-term growth with net sales only increasing by 8.68% annually and operating profit at 6.84%. Additionally, the company's ROE of 9.7 indicates an expensive valuation with a price to book value of 1.8.
In the past year, the stock has underperformed the market (BSE 500) with a return of -1.93%, while its profits have fallen by -7.2%. This is in stark contrast to the market's return of 35.66% in the same time period. Other factors that may have contributed to the downgrade include positive results in June 2024, with the company's net sales reaching a high of Rs 4,315.52 crore and PBT less OI growing by 44.97%. The company also has a high institutional holding of 40.76%, indicating that these investors have better resources to analyze the company's fundamentals.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. This is a significant change from the mildly bullish trend on October 10, 2024, which has resulted in a -0.59% return since then. Overall, the downgrade to 'Sell' by MarketsMOJO suggests that Mahindra & Mahindra Financial Services may not be a strong investment option at this time.