Macquarie has maintained its Underperform rating on M&M Financial Services and kept the target price unchanged at ₹235 per share, implying a 12% downside from the current market price of ₹266.40.
The brokerage flagged that the Q1 PAT missed estimates due to elevated credit costs, although this was partly cushioned by some improvement in margins. It also noted that the net interest margin (NIM) for the quarter included a one-off benefit from dividend income, making it less sustainable going forward.
Macquarie highlighted that the company has guided for a credit cost of 1.7% for FY26, and it expects the sustainable return on assets (RoA) to remain structurally lower than peers — a key reason for the bearish outlook.
Disclaimer: The brokerage views expressed above are those of Macquarie. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
