Goldman Sachs has a ‘Sell’ rating on M&M Finance and target price of ₹224, citing an operational miss in Q4FY25 and persistent weakness in business momentum.
The brokerage observed that PPOP grew just 3%, missing its estimates by 2%, due to lower net interest margins (NIMs) and higher operating expenses. Although non-interest income saw a healthy 23% QoQ growth, it wasn’t enough to offset margin pressures.
For the quarter, net profit declined 9% YoY to ₹563.1 crore, while NII increased 12.1% YoY. Disbursals fell 5.7% QoQ, underscoring sluggish demand across most segments except tractors and SME lending. Credit costs were lower than expected, helping the company report an in-line PAT versus expectations.
Goldman Sachs believes growth headwinds and high opex will continue to weigh, justifying a cautious stance on the stock.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
