Mahindra & Mahindra Financial - Strong operating performance; fears of slowdown remain an overhang - Kotak

High recoveries, capital gains and stable qoq disbursements drove robust operational performance for Mahindra Finance in 4QFY13—PAT up 47% and core earnings up 27% yoy. We like the management's concerted efforts to maintain growth momentum, like increase in number of branches and tie-ups with new OEMs. However, likely slowdown in autos, primarily M&M utility vehicles (the key growth driver for FY2013), remains a challenge, in our view.

We tweak earnings; retain REDUCE rating with TP of Rs220.

Source : Equity Bulls

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