M&M Financial Services Receives Overweight Call with Target of ₹310
In a recent report on M&M Financial Services, analysts have given an overweight call with a target price of ₹310. The company has seen a significant increase in disbursements, with a 6.5% month-on-month growth and a 13% year-on-year growth. Additionally, gross assets have risen by 24% year-on-year and 1.8% month-on-month.
Analysts have assumed a disbursement growth of 12.5% year-on-year in the fourth quarter of FY24. This growth implies a 13% year-on-year and 34% month-on-month increase for the month of March. However, if the disbursement growth falls short of expectations, there could be risks to the forecasted assets under management.
Meanwhile, Jefferies has issued a buy call on IIFL Finance with a target price of ₹765. The Reserve Bank of India has restricted the company from disbursing gold loans due to material supervisory concerns. These restrictions will be reviewed after a special audit and rectification of issues. The ban on gold lending could potentially impact earnings due to the unwinding of gold loans, which make up 32% of the company’s assets under management.
In the IT sector, CLSA has downgraded TCS and HCL to sell from underperform, while reiterating sell ratings on Wipro and LTIMindtree. The outlook for 2024 growth remains weak, with concerns not reflected in valuations. UBS has a neutral rating on Siemens, with a target price raised to ₹5,000. The company’s large project orders are expected to remain strong, particularly in the transmission segment.
Kotak Institutional Equities has issued a sell rating on Eicher Motors with a target price of ₹3100. They expect Royal Enfield’s domestic volumes to moderate in FY2025 due to demand saturation in richer states, increased competition, and affordability issues. On the other hand, they have a buy rating on Adani Ports with a target price raised to ₹1520. Monthly data suggests growth acceleration, particularly at Dhamra Port, leading to a raise in estimates for FY2024-26.
