Mahindra Finance touchs 52 week high on healthy disbursements in Nov
Published On: Monday, December 5, 2022 | By: Team KnowMyStock
Mahindra & Mahindra (M&M) Financial Services' share price touched a fresh 52-week high of Rs 243.60 apiece, after surging by around 6.5 percent on the BSE intraday during Monday’s trading session after the company announced it recorded a disbursement of approximately Rs 4,500 crore in November 2022, delivering a 75 percent year on year (YoY) growth, on the backdrop of positive macro environment. The stock of M&M Group’s financial arm breached its earlier high of Rs 235, hit on September 15, 2022. The financial company's year-to-date (YTD) disbursement stood at approximately Rs 31,050 crore, registering a YoY growth of 99 percent. Healthy disbursement trends have led to a strong gross asset book of approximately Rs 76,300 crore, growing around 3.4 percent over September 2022. . This has resulted in a growth of 17.5% versus March 2022.
Also, the collection efficiency (CE) was at 96% for November 2022, against CE of 94% in the same month last year.M&M Financial said that the stage 2 assets as of November end experienced a sequential reduction compared to October 2022 and is estimated below 9 percent, while stage 3 assets remained stable at lower than 7 percent as of month end. Mahindra Finance expects further improvement in Stage 2 and Stage 3 assets during December 2022.In its regulatory filing, Mahindra Finance highlighted that gross non-performing assets (GNPA) (as per Income Recognition, Asset Classification, and Provisioning norms) is estimated to be higher than Stage 3 asset by ~ ₹1200 crore, reconfirming the management beliefs that no additional provisions may be required over and above the Expected Credit Loss (ECL) provision for FY23.
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