HSBC has reaffirmed its Buy rating on Mahindra & Mahindra Financial Services (M&M Finance), setting a target price of ₹320 per share, implying a 19% upside from the current market price of ₹269.30.
The company’s Q3 operating profit slightly missed estimates, but net profit exceeded expectations due to a release of provisions. While operational trends are stabilizing, there was a marginal increase in Gross Stage 3 assets on a sequential basis.
Despite the minor setback in asset quality, HSBC remains bullish on M&M Finance, citing steady operational trends and potential for continued profitability improvements.
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