Mahindra & Mahindra Financial Services’s Q2 results have led to a mixed outlook from Jefferies and Morgan Stanley, with differing opinions on whether to hold or reduce exposure to the stock.
Jefferies has maintained its hold rating on Mahindra Finance, with a target price of ₹315, reflecting an 11.6% upside from the current market price of ₹282.30. The brokerage cited higher provisions as a reason for the stock’s underperformance, but expects improvement in FY25.
Morgan Stanley has cut its target price to ₹285, representing a modest 1.0% upside, while maintaining its equal-weight rating. The brokerage expressed concerns over the company’s lowered RoA guidance and full valuation.
With brokerages divided on the stock, Mahindra Finance may be one to hold, pending further clarity on its performance.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice.
