M & M Financial Services - March 2013 Results Preview - Motilal Oswal

- MMFS continues to ride high on its multi-product strategy and strong rural focus. Healthy growth momentum in the CV, used vehicle and car segments is likely to sustain on the back of the festive season gone by. AUMs expected to grow at a healthy pace at 30%+ levels.

- Margins are likely to improve in this quarter due to fund raising during the last quarter. In 3QFY13, calculated NIMs stood at 9.2%.

- We expect NII to grow at 26% YoY and 15% QoQ.

- Asset quality is expected to remain healthy. As in December 2012, GNPAs were 4% and NNPAs were 1.6%.

- We expect net profit to grow at ~12% YoY and ~27% QoQ to INR2.56b.

- The stock trades at 2.1x FY14E and 1.8x FY15E BV. Maintain Buy.

Source : Equity Bulls

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