MAHINDRA & MAHINDRA FINANCIAL SERVICES – Kotak Securities Research Report

In the wake of healthy monsoon and improved agriculture growth, business growth outlook for MAHINDRA & MAHINDRA FINANCIAL SERVICES appears highly positive. A buoyant rural economy will significantly boost advances growth. Moreover, we are of the view that MAHINDRA & MAHINDRA FINANCIAL SERVICES‘s strong geographic spread with a branch network of 487 in rural and semi-urban regions will aid in swiftly scaling up its loan book. We are raising our advances growth estimates for MAHINDRA & MAHINDRA FINANCIAL SERVICES from 20% CAGR over FY11-12 to 25% CAGR to Rs.104.7bn and Rs.131.9bn in FY11 and FY12 respectively.