InCred Equities - Mahindra & Mahindra Finance

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	81,052	91,652	106,250	123,729
Total Non-Interest Income (Rsm)	712	1,976	2,127	2,445
Operating Revenue (Rsm)	81,764	93,628	108,377	126,173
Total Provision Charges (Rsm)	(16,179)	(19,910)	(22,111)	(24,552)
Net Profit (Rsm)	23,450	25,732	31,066	38,217
Core EPS (Rs)	19.00	20.85	25.17	30.96
Core EPS Growth	33%	10%	21%	23%
FD Core P/E (x)	14.50	13.22	10.95	8.90
DPS (Rs)	6.50	10.00	13.00	15.00
Dividend Yield	2.36%	3.63%	4.72%	5.44%
BVPS (Rs)	160.5	171.3	183.5	199.5
P/BV (x)	1.72	1.61	1.50	1.38
ROE	12.4%	12.6%	14.2%	16.2%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income	81,052	91,652	106,250	123,729
Total Non-Interest Income	712	1,976	2,127	2,445
Operating Revenue	81,764	93,628	108,377	126,173
Total Non-Interest Expenses	(31,378)	(36,007)	(40,920)	(46,128)
Pre-provision Operating Profit	47,651	54,449	63,810	75,851
Total Provision Charges	(16,179)	(19,910)	(22,111)	(24,552)
Operating Profit After Provisions	31,473	34,539	41,699	51,298
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	31,473	34,539	41,699	51,298
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	42,841	47,500	56,344	67,701
Exceptional Items
Pre-tax Profit	31,473	34,539	41,699	51,298
Taxation	(8,022)	(8,808)	(10,633)	(13,081)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	23,450	25,732	31,066	38,217
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	23,450	25,732	31,066	38,217

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits
Avg Liquid Assets/Avg Assets	89.8%	90.6%	90.9%	91.0%
Avg Liquid Assets/Avg IEAs	103.8%	105.4%	104.7%	102.5%
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-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	1,170,208	1,312,987	1,506,846	1,730,638
Liquid Assets & Invst. (Current)
Other Int. Earning Assets
Total Gross Int. Earning Assets	1,170,208	1,312,987	1,506,846	1,730,638
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	1,170,208	1,312,987	1,506,846	1,730,638
Intangible Assets
Other Non-Interest Earning Assets	8,357	9,193	10,112	11,123
Total Non-Interest Earning Assets	25,910	27,860	30,005	32,365
Cash And Marketable Securities	55,359	78,780	53,272	27,714
Long-term Investments	104,005	112,325	125,804	140,901
Total Assets	1,355,482	1,531,952	1,715,927	1,931,618
Customer Interest-Bearing Liabilities
Bank Deposits
Interest Bearing Liabilities: Others	1,128,735	1,287,171	1,449,995	1,638,599
Total Interest-Bearing Liabilities	1,128,735	1,287,171	1,449,995	1,638,599
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	28,626	33,279	39,420	46,814
Total Liabilities	1,157,361	1,320,450	1,489,414	1,685,413
Shareholders Equity	198,121	211,503	226,513	246,204
Minority Interests
Total Equity	198,121	211,503	226,513	246,204

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	16.2%	13.1%	15.9%	16.5%
Operating Profit Growth	14.3%	14.4%	17.1%	18.7%
Pretax Profit Growth	34%	10%	21%	23%
Net Interest To Total Income	99.1%	97.9%	98.0%	98.1%
Cost Of Funds	7.64%	7.30%	7.10%	6.90%
Return On Interest Earning Assets	14.7%	14.5%	14.4%	14.2%
Net Interest Spread	7.11%	7.18%	7.33%	7.33%
Net Interest Margin (Avg Deposits)
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	34%	37%	35%	32%
Interest Return On Average Assets	6.47%	6.35%	6.54%	6.78%
Effective Tax Rate	25.5%	25.5%	25.5%	25.5%
Net Dividend Payout Ratio
Return On Average Assets	1.87%	1.78%	1.91%	2.10%

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

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

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Market Data

Source: Bloomberg