Mahindra & Mahindra Financial Services Ltd

CMP: 132

Mahindra & Mahindra Financial Services Limited is a finance company that provides finance to prospective buyers of Mahindra range of utility vehicles and tractors. The Company extends finance through hire purchase/loan and lease modes. Mahindra & Mahindra has a network of branches located across India.

Mahindra & Mahindra Financial Services is a strong mid-cap stock that one can accumulate for long term. Both Revenues and PAT have been growing steadily at 30 to 40% a year for the last 5 years. NPM has also grown steadily from 16% to as high as 25% in the last 5 years. Its currently trading at a fair P/E of little less than 15. Good dividend yields of little over 1% in the last 12 months. Buy and accumulate with long term perspective.