Only buyers in Mahindra Finance stocks post in-line Q2 results; brokerages mixed

Mahindra Finance Share Price: Mahindra Finance, NSE: M&MFIN, stocks locked in upper circuit of 10 per cent in early on Thursday, November 3, on the back of in-line profitability in the September quarter of the current fiscal. 

The stock opened at Rs 206 apiece on NSE and hit the upper circuit of Rs 212.95 -- up by Rs 18 from previous close of Rs 193.60. 

In the July-September quarter, the Mumbai-based non-banking finance company reported over 55 per cent decline in its net profit at Rs 492 crore. The company had posted a net profit of Rs 1,103 crore in the corresponding period in the last fiscal. 

Total company's income increased 3 per cent to Rs 3,029 crore during the quarter under review against Rs 2,951 crore during the corresponding quarter last year, the company said in an exchange release.

The company focused on providing financial services in the rural and semi-urban markets in Q2FY22, the company said. It witnessed a significant reversal of impairment provisions due to improvement in asset quality which had deteriorated during Q1 FY22 during the second wave of Covid-19. This had resulted in a higher profit after tax, the company added in an exchange filing.

Following Mahindra Finance's second-quarter business update, brokerages have given mixed responses on the stock.