Mahindra & Mahindra Financial Services Receives Upgraded Stock Call from MarketsMOJO

Mahindra & Mahindra Financial Services, a leading finance and non-banking financial company (NBFC) in the largecap industry, has recently received an upgraded stock call of 'Hold' from MarketsMOJO on October 15, 2024.
The company has shown positive results in the first quarter of 2024, with a growth of 44.97% in PBT LESS OI(Q) at Rs 622.06 crore and a highest DPR(Y) of 40.24%. Its net sales for the quarter also saw a growth of 20.44% at Rs 4,315.52 crore.

Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on October 14, 2024. It has generated a return of 1.09% since then. A key technical factor, MACD, has also been bullish since October 14, 2024.

With a ROE of 9.7, the stock is currently trading at a fair valuation with a price to book value of 1.8. It is also trading at a fair value compared to its average historical valuations. However, in the past year, the stock has generated a negative return of -0.24% while its profits have fallen by -7.2%.

One positive aspect for the company is its high institutional holdings at 40.76%. These investors have better capability and resources to analyze the fundamentals of companies compared to most retail investors.

However, the company has shown poor long-term growth with net sales growing at an annual rate of 8.68% and operating profit at 6.84%. It has also underperformed the market in the last year, with the BSE 500 generating returns of 35.67% while the stock has generated negative returns of -0.24%.

Overall, while the stock may be a good hold for now, investors should keep an eye on its long-term growth and performance in the market.