Shares of Mahindra and Mahindra Financial Services rose over 3% in Wednesday’s session even as HSBC lowered its target price, reflecting a cautious outlook on the financial sector.
The stock gained 3.62% to Rs 296.45, up Rs 10.35 from its previous close of Rs 286.10. During the session, it traded in a range of Rs 291.15 to Rs 302.00, taking its market capitalization to approximately Rs 41,189 crore. The company currently trades at a price-to-earnings ratio of 16.80 with a dividend yield of 2.19%.
HSBC maintained a ‘hold’ rating on the stock but reduced its target price to Rs 300 from Rs 420 earlier. The brokerage highlighted that the ongoing Middle East conflict could impact demand, growth, and margins across financial companies.
According to HSBC, liability-side pressures have started to emerge, while asset-side stress could also develop across multiple segments going forward. The brokerage has cut its estimates for assets under management (AUM) growth, margins, and earnings per share (EPS) across the sector.
Despite the cautious stance, the stock remained in focus during Wednesday’s session with steady buying interest.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.