Buy Mahindra and Mahindra Financial; target of Rs 430: Motilal Oswal

Reports coming in for today mention that Motilal Oswal's research report on Mahindra and Mahindra Financial

We visited the central processing center (CPC) of Mahindra Finance (MMFS), where management provided insights into its digital transformation strategy, covering the Udaan program, digital onboarding and underwriting, CPC automation, Samur.AI, and the evolving branch-led cross-selling model. We subsequently visited a tractor dealership in Pune to understand the practical implementation of these initiatives across sourcing and collections, including seeing the M TEZZ app and Samur.AIenabled automation live in action.

MMFS at present trades at 1.8x FY27E P/BV and 14x FY27E P/E. With a projected PAT CAGR of ~23% over FY26-FY28E and RoA/RoE of 2.4%/14.5% in FY28E, we reiterate our BUY rating with a TP of INR430 (based on 2x Mar’28E BV).

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Mahindra and Mahindra Financial – 2209026 – moti