MMFSL recently came out with its Q2FY10 results. It posted a net profit of Rs 69.20 crs for the quarter ended September 30, 2009 as compared to Rs 35.22 crs for the quarter ended September 30, 2008. Total Income has increased from Rs 330.91 crs for the quarter ended September 30, 2008 to Rs 362.50 crs for the quarter ended September 30, 2009.
MMFSL managed to
bring down its Net NPAs to 2.8% in Q2FY10 from 4.0% in Q2FY09. The gross NPA of the company stood at Rs 793.3 crs in Q2FY10 marginally up from Rs 786.6 crs in Q2FY09.
Gross NPAs as a percentage of Gross advances stood at 9% in Q2FY10.
MMFSL has registered a 10% growth in its disbursements on a y-o-y basis to Rs 2,186 crores during Q2FY10. The half yearly disbursements of MMFSL were up 9% y-o-y from Rs 3,475 crores in H1FY09 to Rs 3,804 crores for H1FY10. 35%.
AUM increased from Rs 8698 crs in September 2008 to Rs 9290 crs in September 2009.
HDFC Sec in a Research note said,
...maintain sequential targets of Rs 294 (11x FY10E EPS, 1.9x FY10E Adj. BV) & Rs 320 (12x FY10E EPS, 2.1x FY10E Adj. BV) over the next few quarters
If you are already holding, then HOLD to enjoy the ride. Considering the High NPAs, we don't recommend fresh exposure at this level, even though it is a Mahindra group company, one of the best managements in corporate India.
