M&MFIN - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.6

📊 Fundamental Analysis

Metric Value Implication

Market Cap ₹35,041 Cr. Large-cap NBFC; stable but slower growth potential

Stock P/E 15.3 Reasonable vs. Industry PE of 25.2 — moderately undervalued

PEG Ratio 0.58 Attractive valuation based on growth — undervalued

ROE / ROCE 10.9% / 8.77% Below ideal levels for financials; suggests mediocre capital efficiency

Dividend Yield 2.58% Strong yield — good for income-seeking investors

Debt-to-Equity 5.53 Very high — typical for NBFCs, but adds risk in rising rate environments

EPS ₹16.5 Decent earnings; supports current valuation

Book Value ₹155 Price-to-book ~1.62 — fair valuation

Profit Growth (QoQ) +6.21% Moderate growth; not aggressive

📈 Technical & Trend Analysis

Current Price: ₹252

DMA 50 / DMA 200: ₹264 / ₹268 — trading below both; bearish trend

RSI: 37.1 — approaching oversold zone

MACD: -3.47 — bearish momentum

Volume: Below average — weak buying interest

✅ Is It a Good Long-Term Investment?

Moderately attractive — M&M Financial shows decent valuation (low PEG), strong dividend yield, and stable earnings. However, low ROCE, high debt, and weak technicals temper enthusiasm. It’s a value play with income potential, but not a high-growth compounder.

🎯 Ideal Entry Price Zone

Buy Zone: ₹235–₹245

Near recent low and RSI oversold territory

Offers better margin of safety

Wait for MACD reversal or volume spike for confirmation

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 1–2 years, unless ROCE improves or growth accelerates

Exit Strategy

Partial Exit near ₹300–₹320 if price rebounds and RSI > 70

Full Exit if ROCE stagnates below 10% or debt levels worsen

Reassess quarterly based on PAT growth and asset quality metrics

Would you like a side-by-side comparison with other NBFCs like Bajaj Finance or Cholamandalam to see how M&MFIN stacks up?

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