Equirus has initiated a Long rating on MAS Financial, setting a target price of Rs 401, representing an upside potential of approximately 42% from the current market price of Rs 282.50. The brokerage firm is confident about MAS Financial’s strategic approach and long-term growth potential.
Key highlights from Equirus’ report:
- Classic Lending Model: Equirus praises MAS Financial for its consistent, conservative, and compliant lending model, which has been a cornerstone of the company’s success. The model focuses on steady growth while maintaining financial discipline.
- Shift to Direct Retail and Geo-Diversification: MAS Financial is actively shifting towards a direct retail channel and diversifying its geographic reach. This move is expected to broaden the company’s market presence and reduce regional concentration risks.
- Ambitious AUM Growth: The company aims to double its Assets Under Management (AUM) every 2-3 years over the next decade, showcasing a robust growth strategy. This rapid AUM growth is expected to contribute significantly to the company’s long-term profitability.
- Healthy Asset Quality: Equirus highlights MAS Financial’s healthy asset quality trends, which are essential for maintaining the company’s financial health as it scales up its operations.
- Profitability to Stay Intact: Despite the tweaks to its business model, Equirus believes that MAS Financial’s profitability will remain intact, driven by its strategic shift and conservative lending practices.
Equirus remains bullish on MAS Financial’s long-term prospects, especially with its focus on asset quality and growth in the retail lending space.
Disclaimer: Stock market investments are subject to market risks. This article is for informational purposes only and should not be construed as investment advice. Please do your own research or consult a financial advisor before making any investment decisions.
