InCred Equities - Mahindra & Mahindra Finance

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Net Interest Income (Rsm)	69,772	79,688	93,525	106,757
Total Non-Interest Income (Rsm)	1,583	1,792	2,030	2,288
Operating Revenue (Rsm)	71,355	81,479	95,555	109,045
Total Provision Charges (Rsm)	(18,228)	(22,205)	(25,481)	(25,910)
Net Profit (Rsm)	17,596	19,507	24,647	30,871
Core EPS (Rs)	14.25	15.80	19.97	25.01
Core EPS Growth	(11%)	11%	26%	25%
FD Core P/E (x)	18.23	16.44	13.01	10.39
DPS (Rs)	6.30	8.00	10.00	12.00
Dividend Yield	2.42%	3.08%	3.85%	4.62%
BVPS (Rs)	147.1	154.9	164.9	177.9
P/BV (x)	1.77	1.68	1.58	1.46
ROE	10.0%	10.5%	12.5%	14.6%
% 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	79,688	93,525	106,757
Total Non-Interest Income	1,583	1,792	2,030	2,288
Operating Revenue	71,355	81,479	95,555	109,045
Total Non-Interest Expenses	(27,285)	(30,392)	(33,860)	(38,129)
Pre-provision Operating Profit	41,783	48,388	58,564	67,348
Total Provision Charges	(18,228)	(22,205)	(25,481)	(25,910)
Operating Profit After Provisions	23,555	26,183	33,084	41,437
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	23,555	26,183	33,084	41,437
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	32,615	35,968	43,749	53,169
Exceptional Items
Pre-tax Profit	23,555	26,183	33,084	41,437
Taxation	(5,959)	(6,677)	(8,436)	(10,567)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	17,596	19,507	24,647	30,871
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	17,596	19,507	24,647	30,871

(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%	86.5%	87.1%	87.8%
Avg Liquid Assets/Avg IEAs	103.0%	103.6%	105.9%	110.1%
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	1,143,986	1,295,581	1,459,373
Liquid Assets & Invst. (Current)
Other Int. Earning Assets
Total Gross Int. Earning Assets	1,000,020	1,143,986	1,295,581	1,459,373
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	1,000,020	1,143,986	1,295,581	1,459,373
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	50,904	92,228	187,372
Long-term Investments	96,508	107,124	119,443	133,777
Total Assets	1,191,921	1,376,669	1,588,675	1,869,388
Customer Interest-Bearing Liabilities
Bank Deposits
Interest Bearing Liabilities: Others	926,530	1,089,490	1,272,370	1,514,935
Total Interest-Bearing Liabilities	926,530	1,089,490	1,272,370	1,514,935
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	83,816	95,979	112,807	134,905
Total Liabilities	1,010,346	1,185,468	1,385,177	1,649,840
Shareholders Equity	181,575	191,201	203,498	219,548
Minority Interests
Total Equity	181,575	191,201	203,498	219,548

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Income Growth	9.8%	14.2%	17.4%	14.1%
Operating Profit Growth	11.9%	15.9%	20.8%	14.9%
Pretax Profit Growth	(14%)	11%	26%	25%
Net Interest To Total Income	97.8%	97.8%	97.9%	97.9%
Cost Of Funds	7.65%	7.90%	7.40%	6.80%
Return On Interest Earning Assets	14.8%	14.9%	14.8%	14.6%
Net Interest Spread	7.16%	6.96%	7.43%	7.83%
Net Interest Margin (Avg Deposits)
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	44%	46%	44%	38%
Interest Return On Average Assets	6.36%	6.20%	6.31%	6.17%
Effective Tax Rate	25.3%	25.5%	25.5%	25.5%
Net Dividend Payout Ratio
Return On Average Assets	1.60%	1.52%	1.66%	1.79%

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Market Data

Source: Bloomberg