Motilal Oswal has given Buy on the stock with a revised price tar recommendation for MAS Financial Services with a target price of Rs. lal Oswal is bullish on MAS Financial Services has recommended buy on the stock with a revised price target (PT) of Rs. 800 in its research report issued on Feb 04, 2022
Asset quality deteriorated 20bp QoQ (led by the RBI NPA circular) to 2.2%, but has still been rather healthy v/s its peers in MSME/SME lending. Capital adequacy as well as liquidity on the Balance Sheet continues to remain strong. MASFIN witnessed a sharp recovery in disbursement and AUM growth. It will now focus on growth with asset quality and profitability at the core. We expect AUM growth of 13% in FY22 and a further increase to 26%/22% in FY23/FY24. We have upgraded our FY24E earnings by 16% to factor in higher AUM growth and benign credit costs. We model an RoE/RoA of 15-17%/2.9-3.0% over FY23-FY24E, respectively. Maintain BUY with a TP of INR 800 (premised on 2.8x Dec’23E BV).