UBS has maintained its Neutral rating on M&M Financial Services and reduced the target price to ₹285 per share, implying a 7% upside from the current market price of ₹266.40.
The brokerage noted that Q1 PAT missed expectations, primarily due to elevated credit costs. However, there were slight beats on net interest income (NII) and pre-provision operating profit (PPoP), indicating some operational resilience.
UBS said the outlook remains soft, with growth likely to stay subdued in FY26. Management has guided for mid-teens growth over the medium term, but challenges continue in both the entry-level passenger vehicle (PV) and commercial vehicle (CV) financing segments, which form a large part of the company’s loan book.
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.
