Broker retains Buy on MMFS, sees ₹415 target on Udaan-led lending gains
A broker has maintained its Buy call on Mahindra & Mahindra Financial Services with a ₹415 target price versus a ₹348.65 CMP, citing faster digital loan journeys, dealer-counter share gains and cross-sell potential from its Udaan programme.
What happened
Mahindra & Mahindra Financial Services (MMFS) · Broker maintains Buy on MMFS with a ₹415 target, citing operational gains from its Udaan digital programme,
Key facts
- Target price: ₹415
- CMP: ₹348.65
- Credit cost target: 1.3-1.7% in FY27
- Customer journey TAT: 1-2 days versus 8-10 days earlier
- Customer base: over 12 million
What changed
Broker maintains Buy on MMFS with a ₹415 target, citing operational gains from its Udaan digital programme, faster loan processing, higher dealer-counter market share and cross-sell, and expected FY27 credit costs of 1.3-1.7%.
Why this matters
MMFS’s Udaan platform is compressing loan approval times to 1–2 days, strengthening dealer-counter conversion and cross-sell opportunities in vehicle finance.
What to watch
- Quarterly disbursement growth, especially dealer-counter sourced and digitally originated loans.
- Reported approval-to-disbursement turnaround time and Udaan adoption across branches/dealers.
- Market-share movement in vehicle finance and Mahindra ecosystem penetration.
- Credit-cost guidance versus the 1.3-1.7% FY27 broker expectation.
- Stage 2/Stage 3 assets, collection efficiency, repossessions and write-off trends.