Shares of the Mahindra & Mahindra Financial Services fell as much as 15 per cent to Rs 289.15, their lowest since May 2017.
The June-quarter profit plunged 74.6 per cent to Rs 68.43 lakh ($9.91 million), missing estimates of Rs 366 crore. Total expenses jumped 34 per cent due to elevated finance costs.
Nomura has cut the TP to Rs 420 from Rs 500, citing a weakening growth outlook; maintains “buy”. Cuts FY20-21 assets under management growth given the weakness in demand.
ROEs could remain weak in the near term (expect ~15 per cent ROEs for FY21), said Nomura.
Over 9.1 million shares changed hands in the first half-an-hour of trade, compared with the 30-day average of over 1.6 million shares.
Up to the last close, the MMFS stock had fallen 27.7 per cent this year, while Cholamandalam Investment and Finance had lost ~1 per cent. ($1 = 69.0530 Indian rupees)