InCred Equities - Mahindra & Mahindra Finance

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	81,052	95,721	111,142	130,116
Total Non-Interest Income (Rsm)	712	822	980	1,157
Operating Revenue (Rsm)	81,764	96,544	112,122	131,274
Total Provision Charges (Rsm)	(16,179)	(20,923)	(22,897)	(25,577)
Net Profit (Rsm)	23,450	28,173	34,917	43,481
Core EPS (Rs)	19.00	20.28	25.14	31.31
Core EPS Growth	33%	7%	24%	25%
FD Core P/E (x)	14.20	13.30	10.73	8.62
DPS (Rs)	6.50	8.00	10.00	14.00
Dividend Yield	2.41%	2.97%	3.71%	5.19%
BVPS (Rs)	160.5	177.5	202.6	233.9
P/BV (x)	1.68	1.52	1.33	1.15
ROE	12.4%	12.7%	13.2%	14.3%
% 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	95,721	111,142	130,116
Total Non-Interest Income	712	822	980	1,157
Operating Revenue	81,764	96,544	112,122	131,274
Total Non-Interest Expenses	(31,378)	(35,712)	(40,425)	(45,621)
Pre-provision Operating Profit	47,651	57,813	68,617	82,512
Total Provision Charges	(16,179)	(20,923)	(22,897)	(25,577)
Operating Profit After Provisions	31,473	36,890	45,720	56,934
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	31,473	36,890	45,720	56,934
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	42,841	49,868	60,639	72,860
Exceptional Items
Pre-tax Profit	31,473	36,890	45,720	56,934
Taxation	(8,022)	(8,717)	(10,803)	(13,453)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	23,450	28,173	34,917	43,481
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	23,450	28,173	34,917	43,481

(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%	91.1%	91.7%	91.5%
Avg Liquid Assets/Avg IEAs	103.8%	103.8%	102.8%	102.3%
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	1,352,518	1,594,833	1,895,165
Liquid Assets & Invst. (Current)
Other Int. Earning Assets
Total Gross Int. Earning Assets	1,170,208	1,352,518	1,594,833	1,895,165
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	1,170,208	1,352,518	1,594,833	1,895,165
Intangible Assets
Other Non-Interest Earning Assets	8,357	2,530	2,530	2,530
Total Non-Interest Earning Assets	25,910	18,258	20,372	24,114
Cash And Marketable Securities	55,359	39,938	42,061	38,958
Long-term Investments	104,005	106,205	127,793	157,890
Total Assets	1,355,482	1,516,920	1,785,059	2,116,126
Customer Interest-Bearing Liabilities
Bank Deposits
Interest Bearing Liabilities: Others	1,128,735	1,235,948	1,464,842	1,747,133
Total Interest-Bearing Liabilities	1,128,735	1,235,948	1,464,842	1,747,133
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	28,626	34,514	38,842	44,138
Total Liabilities	1,157,361	1,270,462	1,503,684	1,791,271
Shareholders Equity	198,121	246,458	281,375	324,856
Minority Interests
Total Equity	198,121	246,458	281,375	324,856

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	16.2%	18.1%	16.1%	17.1%
Operating Profit Growth	14.3%	20.7%	17.9%	19.5%
Pretax Profit Growth	34%	17%	24%	25%
Net Interest To Total Income	99.1%	99.1%	99.1%	99.1%
Cost Of Funds	7.64%	7.35%	7.20%	7.30%
Return On Interest Earning Assets	14.7%	14.5%	14.1%	14.2%
Net Interest Spread	7.11%	7.13%	6.94%	6.88%
Net Interest Margin (Avg Deposits)
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	34%	36%	33%	31%
Interest Return On Average Assets	6.47%	6.66%	6.73%	6.67%
Effective Tax Rate	25.5%	23.6%	23.6%	23.6%
Net Dividend Payout Ratio
Return On Average Assets	1.87%	1.96%	2.11%	2.23%

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

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Source: Bloomberg