UBS has maintained its Neutral rating on M&M Financial Services while cutting the target price to ₹285 per share from its earlier estimate. The revised target implies a modest upside from the current market price of ₹266.40.
The global brokerage noted that the company’s Q1 performance fell short of expectations on the profitability front. The primary drag was a miss on PAT, which UBS attributed to elevated credit costs. However, there were slight beats on both net interest income (NII) and pre-provision operating profit (PPoP), which offered a silver lining.
UBS flagged that the overall outlook for M&M Financial remains soft. It expects growth to stay subdued in FY26, weighed down by continuing challenges in both entry-level passenger vehicles (PV) and commercial vehicle (CV) financing segments.
While management has guided for mid-teen growth in the medium term, UBS believes near-term headwinds in the core segments could limit earnings traction.
Disclaimer: The brokerage views expressed above are those of UBS. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
