Shares of Mahindra & Mahindra Financial Services Ltd. fell to the lowest in more than two months after analysts highlighted muted disbursements, loss of market share across key segments and growth challenges.
The company posted an 8% sequential decline in net profit at Rs 219 crore in the quarter ended March, according to an exchange filing. The bottom line for the full fiscal was 28% lower than the preceding year at Rs 780 crore.
Standalone assets under management, comprising loan assets and investments, stood at Rs 81,689 crore on March 31, 2021, against Rs 77,160 crore a year ago.
Total investment book stood at Rs 11,607 crore as of March 2021 compared with Rs 5,911 crore a year ago.
The company, which finances vehicles and tractors, saw its loan assets fall to Rs 64,608 crore as of March 2021 from Rs 68,089 crore a year ago.
Disbursements were down 41% to Rs 19,001 crore in FY21.
Shares of M&M Financial fell as much as 9.92% during the day but pared some of the losses to trade 8.64% lower as of 2 p.m. on Monday. Of the 34 analysts tracking the company, 17 have a ‘buy’ rating, 13 suggest a ‘hold’ and four recommend a ‘sell’, according to Bloomberg data. The average of the 12-month consensus price targets implies an upside of 17.6%.