External broker reports(aggregated public sources), Sharekhan

Sharekhan

External broker reports(aggregated public sources)

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Mahindra & Mahindra Fin Services Ltd. / Equity Bottom-Up

<ul><li>PAT stood at Rs. 899 was higher, mainly led by negligible credit costs that fell owing to a reversal of ECL provisions of Rs. 430 crore due to lower LGDs.</li><li>Consequently, stage-3 coverage reduced to 50% versus 59.5% q-o-q. Asset quality has shown slight deterioration.</li><li>With cautious outlook on asset quality given a tough macro environment and PCR guided at 51-54%, credit cost could be slightly higher than guided at ~1.3-1.5% on average assets in FY26E.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

PAT stood at Rs. 899 was higher, mainly led by negligible credit costs that fell owing to a reversal of ECL provisions of Rs. 430 crore due to lower LGDs.Consequently, stage-3 coverage reduced to 50% versus 59.5% q-o-q. Asset quality has shown slight deterioration.With cautious outlook on asset quality given a tough macro environment and PCR guided at 51-54%, credit cost could be slightly higher than guided at ~1.3-1.5% on average assets in FY26E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mahindra & Mahindra Financial Services Ltd - Mixed Bag Q3

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>MMFS delivered a stable quarter in terms of growth, margins, and credit costs.</li><li>Quarterly PAT stood at ~Rs9bn, with the beat primarily driven by minimal credit costs, which resulted from the ECL-model refresh (leading to lower PD and LGD estimates).</li><li>The company continues to expand into new categories beyond vehicle financing, through focus on SME lending, leasing, insurance, payments, mortgages, and cross-sell.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

MMFS delivered a stable quarter in terms of growth, margins, and credit costs.Quarterly PAT stood at ~Rs9bn, with the beat primarily driven by minimal credit costs, which resulted from the ECL-model refresh (leading to lower PD and LGD estimates).The company continues to expand into new categories beyond vehicle financing, through focus on SME lending, leasing, insurance, payments, mortgages, and cross-sell.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mahindra Finance - Steady Quarter; ECL Model Changes Drive the Earning Beat

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul><li>HCL Technologies: HCL Tech demonstrated resilient performance across its services (+0.7% QoQ CC) and software businesses (+4.9% YoY CC) amidst a global environment characterised by increasing uncertainty and reduced discretionary spending</li><li>While IT services revenue saw a slight sequential decline (-0.3% QoQ CC), the ER&amp;D revenue registered strong growth of 5.5% QoQ CC, and the software business was impacted by seasonality</li><li>Looking ahead, HCL Tech anticipates a modest growth outlook (2-5% YoY CC) with stable profitability (EBIT 18-19%), acknowledging the potential for further deterioration in the macroeconomic environment that could impact client IT spending</li><li>The services business has consistently outperformed peers over the last two years with AI and Gen AI becoming integral part of most of the deals</li><li>Despite these uncertainties, HCL Tech experienced strong deal bookings in Q4 FY25, indicating continued client engagement, and the pipeline remains robust with net-new TCV of USD 2.9bn (+30% YoY)</li><li>The impact of global uncertainty is expected to potentially supress discretionary spending and necessitate strong ROI justifications for new projects, although efficiency-driven and AI-led initiatives will drive deal conversations</li><li>We cut our revenue estimate by ~3-4% and maintain our ADD rating with a target price of INR 1,720, based on 22x FY27E EPS</li><li>Havells India: Havells’ Q4 revenue grew by a healthy 20% YoY to INR 65bn, aided by 21/40% growth in cable/Lloyd segments</li><li>However, gross margin contracted by 70bps YoY, but this was offset by lower employee and ad spends</li><li>So, EBITDAM was maintained YoY at 11.6%, translating into 20% EBITDA growth</li><li>Performance across segments was mixed: switchgear revenue grew but margins declined; cable revenue saw strong growth with stable margins; lighting revenue saw minimal growth with margin contraction; ECD revenue and margins both improved; and Lloyd's exhibited significant revenue and margin expansion</li><li>Management highlighted that secondary sales for AC and fans have been weak in March and April due to the delayed summer</li><li>We maintain ADD rating and value the company at 50x Mar-27E EPS to arrive at a TP of INR 1,650/sh.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HCL Technologies: HCL Tech demonstrated resilient performance across its services (+0.7% QoQ CC) and software businesses (+4.9% YoY CC) amidst a global environment characterised by increasing uncertainty and reduced discretionary spendingWhile IT services revenue saw a slight sequential decline (-0.3% QoQ CC), the ER&amp;D revenue registered strong growth of 5.5% QoQ CC, and the software business was impacted by seasonalityLooking ahead, HCL Tech anticipates a modest growth outlook (2-5% YoY CC) with stable profitability (EBIT 18-19%), acknowledging the potential for further deterioration in the macroeconomic environment that could impact client IT spendingThe services business has consistently outperformed peers over the last two years with AI and Gen AI becoming integral part of most of the dealsDespite these uncertainties, HCL Tech experienced strong deal bookings in Q4 FY25, indicating continued client engagement, and the pipeline remains robust with net-new TCV of USD 2.9bn (+30% YoY)The impact of global uncertainty is expected to potentially supress discretionary spending and necessitate strong ROI justifications for new projects, although efficiency-driven and AI-led initiatives will drive deal conversationsWe cut our revenue estimate by ~3-4% and maintain our ADD rating with a target price of INR 1,720, based on 22x FY27E EPSHavells India: Havells’ Q4 revenue grew by a healthy 20% YoY to INR 65bn, aided by 21/40% growth in cable/Lloyd segmentsHowever, gross margin contracted by 70bps YoY, but this was offset by lower employee and ad spendsSo, EBITDAM was maintained YoY at 11.6%, translating into 20% EBITDA growthPerformance across segments was mixed: switchgear revenue grew but margins declined; cable revenue saw strong growth with stable margins; lighting revenue saw minimal growth with margin contraction; ECD revenue and margins both improved; and Lloyd's exhibited significant revenue and margin expansionManagement highlighted that secondary sales for AC and fans have been weak in March and April due to the delayed summerWe maintain ADD rating and value the company at 50x Mar-27E EPS to arrive at a TP of INR 1,650/sh.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily: HCL Technologies, Havells India, AU Small Finance Bank

<ul><li>Driven by the surge in credit cost (Q2: Rs7.0bn vs our estimate of Rs5.0bn and Q1: Rs4.5bn), MMFS reported weaker profitability in Q2FY25, with PAT at Rs3.7bn logging significantly below our estimate of Rs5.0bn.</li><li>The rise in credit cost reflects the inherent seasonality in MMFS’s business owing to the agrarian and rural self-employed customer segment.</li><li>Notwithstanding the credit-cost surge in Q2, management appears confident about asset quality and credit-cost normalization in H2 led by recoveries and ECL Model refresh-driven reversal of provisions.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Driven by the surge in credit cost (Q2: Rs7.0bn vs our estimate of Rs5.0bn and Q1: Rs4.5bn), MMFS reported weaker profitability in Q2FY25, with PAT at Rs3.7bn logging significantly below our estimate of Rs5.0bn.The rise in credit cost reflects the inherent seasonality in MMFS’s business owing to the agrarian and rural self-employed customer segment.Notwithstanding the credit-cost surge in Q2, management appears confident about asset quality and credit-cost normalization in H2 led by recoveries and ECL Model refresh-driven reversal of provisions.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mahindra Finance - Credit Cost to Normalize in H2; Reiterate BUY

<ul><li>As the company's Mission 2025 nears its finishing line, it has been a case of ‘glass half full’.</li><li>With Q2FY25 business updates already lowering expectations on growth and the asset quality front, we believe the negativities around growth, asset quality, and profitability are already priced-in with MMFS shares down 17% QTD Q3FY25 (vs NIFTY down ~4% and NIFTY Midcap down 3%).</li><li>Notwithstanding some setbacks caused by the confluence of internal and external factors, we see the management's medium-to-long term strategy to deliver diversified and profitable growth to be gradually progressing on the right track.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

As the company's Mission 2025 nears its finishing line, it has been a case of ‘glass half full’.With Q2FY25 business updates already lowering expectations on growth and the asset quality front, we believe the negativities around growth, asset quality, and profitability are already priced-in with MMFS shares down 17% QTD Q3FY25 (vs NIFTY down ~4% and NIFTY Midcap down 3%).Notwithstanding some setbacks caused by the confluence of internal and external factors, we see the management's medium-to-long term strategy to deliver diversified and profitable growth to be gradually progressing on the right track.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mahindra Finance - Inflection Point Around the Corner; Valuation Palatable; Upgrade to BUY

India

Mahindra & Mahindra Financial Services Limited is a finance company that provides finance to prospective buyers of Mahindra range of utility vehicles and tractors.  The Company extends finance through hire purchase/loan and lease modes.  Mahindra & Mahindra has a network of branches located across India.

Mahindra & Mahindra Fin Services Ltd. (MMFS IN)

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Mahindra & Mahindra Fin Services Ltd. (MMFS IN)

Mahindra & Mahindra Financial Services Ltd - Mixed Bag Q3

PAT stood at Rs. 899 was higher, mainly led by negligible credit costs that fell owing to a reversal of ECL provisions of Rs. 430 crore due to...

Sharekhan

Mahindra Finance - Steady Quarter; ECL Model Changes Drive the Earning Beat

Quarterly PAT stood at ~Rs9bn, with the beat primarily driven by minimal credit costs, which resulted from the ECL-model refresh (leading to lower...

Emkay

HSIE Results Daily: HCL Technologies, Havells India, AU Small Finance Bank

While IT services revenue saw a slight sequential decline (-0.3% QoQ CC), the ER&D revenue registered strong growth of 5.5% QoQ CC, and the...

HDFC Securities

Mahindra Finance - Credit Cost to Normalize in H2; Reiterate BUY

Driven by the surge in credit cost (Q2: Rs7.0bn vs our estimate of Rs5.0bn and Q1: Rs4.5bn), MMFS reported weaker profitability in Q2FY25, with PAT...

Emkay

Mahindra Finance - Inflection Point Around the Corner; Valuation Palatable; Upgrade to BUY

With Q2FY25 business updates already lowering expectations on growth and the asset quality front, we believe the negativities around growth, asset...

Emkay

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