InCred Equities - Mahindra & Mahindra Finance

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Net Interest Income (Rsm)	69,772	79,624	93,891	108,865
Total Non-Interest Income (Rsm)	1,583	1,817	2,008	2,156
Operating Revenue (Rsm)	71,355	81,441	95,899	111,021
Total Provision Charges (Rsm)	(18,228)	(15,661)	(23,450)	(26,922)
Net Profit (Rsm)	17,596	23,932	25,700	30,271
Core EPS (Rs)	14.25	19.39	20.82	24.52
Core EPS Growth	(11%)	36%	7%	18%
FD Core P/E (x)	18.85	13.86	12.90	10.96
DPS (Rs)	6.30	10.00	10.00	12.00
Dividend Yield	2.35%	3.72%	3.72%	4.47%
BVPS (Rs)	147.1	156.5	167.3	179.8
P/BV (x)	1.83	1.72	1.61	1.49
ROE	10.0%	12.8%	12.9%	14.1%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Net Interest Income	69,772	79,624	93,891	108,865
Total Non-Interest Income	1,583	1,817	2,008	2,156
Operating Revenue	71,355	81,441	95,899	111,021
Total Non-Interest Expenses	(27,285)	(30,957)	(34,821)	(39,898)
Pre-provision Operating Profit	41,783	47,785	57,947	67,554
Total Provision Charges	(18,228)	(15,661)	(23,450)	(26,922)
Operating Profit After Provisions	23,555	32,124	34,497	40,632
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	23,555	32,124	34,497	40,632
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	32,615	42,452	46,065	53,819
Exceptional Items
Pre-tax Profit	23,555	32,124	34,497	40,632
Taxation	(5,959)	(8,192)	(8,797)	(10,361)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	17,596	23,932	25,700	30,271
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	17,596	23,932	25,700	30,271

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits
Avg Liquid Assets/Avg Assets	85.1%	86.7%	87.5%	88.0%
Avg Liquid Assets/Avg IEAs	103.0%	102.2%	102.0%	101.8%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans
Provision Charge/Avg Assets
Total Write Offs/Average Assets

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Gross Loans	1,000,020	1,160,016	1,334,158	1,527,641
Liquid Assets & Invst. (Current)
Other Int. Earning Assets
Total Gross Int. Earning Assets	1,000,020	1,160,016	1,334,158	1,527,641
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	1,000,020	1,160,016	1,334,158	1,527,641
Intangible Assets
Other Non-Interest Earning Assets	52,283	57,505	63,249	69,567
Total Non-Interest Earning Assets	68,502	74,655	81,423	88,867
Cash And Marketable Securities	26,891	21,694	28,315	24,327
Long-term Investments	96,508	99,403	107,356	120,238
Total Assets	1,191,921	1,355,768	1,551,252	1,761,074
Customer Interest-Bearing Liabilities
Bank Deposits
Interest Bearing Liabilities: Others	926,530	1,066,632	1,231,938	1,404,212
Total Interest-Bearing Liabilities	926,530	1,066,632	1,231,938	1,404,212
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	83,816	95,979	112,807	134,905
Total Liabilities	1,010,346	1,162,611	1,344,745	1,539,117
Shareholders Equity	181,575	193,157	206,507	221,957
Minority Interests
Total Equity	181,575	193,157	206,507	221,957

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Income Growth	9.8%	14.1%	17.9%	15.9%
Operating Profit Growth	11.9%	14.6%	21.0%	16.4%
Pretax Profit Growth	(14%)	36%	7%	18%
Net Interest To Total Income	97.8%	97.8%	97.9%	98.1%
Cost Of Funds	7.65%	7.95%	7.70%	7.40%
Return On Interest Earning Assets	14.8%	14.7%	14.6%	14.4%
Net Interest Spread	7.16%	6.76%	6.92%	7.02%
Net Interest Margin (Avg Deposits)
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	44%	33%	40%	40%
Interest Return On Average Assets	6.36%	6.25%	6.46%	6.57%
Effective Tax Rate	25.3%	25.5%	25.5%	25.5%
Net Dividend Payout Ratio
Return On Average Assets	1.60%	1.88%	1.77%	1.83%

(91) 22 4161 1569 rishabh.jogani@incredresearch.com

(91) 22 4161 1553 meghna.luthra@incredresearch.com

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Market Data

Source: Bloomberg