Buy Mas Financial Services, target price Rs 955: Axis Securities

Axis Securities has buy call on Mas Financial Services with a target price of Rs 955. The current market price of Mas Financial Services is Rs 792.55.

Mas Financial Services, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 4348.64 Crore) operating in NBFC sector.

Mas Financial Services key Products/Revenue Segments include Interest, Income From Financial Services, Fees & Commission Income and Income From Sale Of Share & Securities for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 240.20 Crore, up 16.77 % from last quarter Total Income of Rs 205.70 Crore and up 45.04 % from last year same quarter Total Income of Rs 165.61 Crore. Company has reported net profit after tax of Rs 50.66 Crore in latest quarter.

The company’s top management includes Mr.Kamlesh C Gandhi, Mrs.Darshana S Pandya, Mr.Balabhaskaran N Nair, Mr.Chetan R Shah, Mr.Umesh R Shah, Mrs.Daksha N Shah. Company has BSR & Co. LLP as its auditors. As on 30-06-2022, the company has a total of 5 Crore shares outstanding.

Investment Rationale
MAS reported a strong Q2FY23 with disbursement and AUM growth momentum continuing at a healthy rate, which is expected to remain so in H2FY23. NIMs have witnessed improvement and should stabilize at 6.5% over the medium term. The brokerage is of the view that MAS remains well-placed to deliver superior growth and return ratios while maintaining stable asset quality.

Promoter/FII Holdings
Promoters held 73.71 per cent stake in the company as of 30-Jun-2022, while FIIs owned 1.54 per cent, DIIs 9.38 per cent.