Mahindra & Mahindra Financial Services Receives 'Hold' Rating from MarketsMOJO, Technical Trends Show Improvement

Mahindra & Mahindra Financial Services, a leading finance and non-banking financial company (NBFC) in the largecap industry, has recently received a 'Hold' rating from MarketsMOJO on April 3, 2024.
The stock is currently in a Mildly Bullish range, with technical trends showing improvement from Sideways on April 3, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish sentiment for the stock.

However, the company's long-term growth has been poor, with Net Sales growing at an annual rate of 8.44% and Operating profit at 9.45%. In addition, the results for December 2023 were flat, with the company's CASH AND CASH EQUIVALENTS(HY) at its lowest at Rs 2,431.82 crore and DEBT-EQUITY RATIO(HY) at its highest at 4.86 times. PBT LESS OI(Q) has also fallen by -7.61%.

With a ROE of 10.7, the stock is currently trading at an expensive valuation with a 2 Price to Book Value. It is also trading at a premium compared to its average historical valuations. Despite generating a return of 24.33% in the past year, the company's profits have fallen by -5.5%.

In the last 1 year, Mahindra & Mahindra Financial Services has underperformed the market, with a return of 24.33% compared to the market (BSE 500) returns of 40.22%. This may be a cause for concern for investors.

Overall, while the technical trends and institutional holdings at 39.69% are positive for the stock, the company's poor long-term growth and underperformance in the market may warrant a 'Hold' rating for now. Investors should carefully consider these factors before making any investment decisions.