M&M Financial Services Share Price Tumbles On Decline In Loan Disbursals

Mahindra and Mahindra Financial Services Ltd.'s share price plunged in early trade on Friday after the lender reported an overall decline in its disbursements.

The non-banking financial company reported overall disbursements for first half of the financial year 2025 at Rs 13,160 crore, down 1% year-on-year.

The collection efficiency was flat at 96% in the second quarter. This is as per the provisional figures reported in the exchange filing on Thursday.

The lender's non-performing assets were at 3.8%, compared to 4.3% a year ago, and business assets stand at Rs 1.13 lakh crore, reflecting a 20% year-on-year increase.

The NBFC has a comfortable liquidity position on its balance sheet, with a liquidity trunk of over Rs 8,500 crore.

In September, the Board of Directors of Mahindra & Mahindra Financial Service approved the expansion into the mortgage business. The new business will include providing housing finance, top-up loans, lease rental discounting, home improvement and home expansion loans, balance transfer loans, and construction finance.

M&M Financial Services stock fell as much as 6.9% in early trade to Rs 300 apiece on the NSE, the lowest since Aug. 20. It was trading 3.72% lower at Rs 310.2 apiece, compared to a 0.26% decline in the benchmark Nifty 50 as of 09:41 a.m.

It has risen 6.9% during the last 12 months and has advanced by 11.4% on a year-to-date basis. The total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 40.

Seventeen out of the 38 analysts tracking the company have a 'buy' rating on the stock, 12 suggest a 'hold' and nine have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 2.2%.