M&M Financial Services
Reco price: Rs 659;
Target price: Rs 800
M&M Financial Services' (MMFS) results were in line with expectations, with net interest income at Rs 420 crore and net profit Rs 150 crore. Strong assets under management growth of 40 per cent, with slight margin contraction of 30 basis points, fuelled growth. Strong growth in new/used commercial vehicles drove improvement in product mix. Lower share of bank term loans in funding (-468 basis points) and higher bonds/securitisation helped protect net interest margins. MMFS' asset quality witnessed slight deterioration with gross non-performing assets and net non-performing assets increasing 10.4 and 14.1 per cent sequentially, respectively. Provision cover also came down 84 basis points sequentially, to 74.4 per cent. Maintain buy.
Emkay Global
Symphony
Reco price: Rs 1,189,
Target price: Rs1,522
Symphony reported lower-than-expected revenue growth of five per cent yoy in a seasonally weak quarter (its peak season is January-June). The operating margin was marginally better than expectation, but Ebitda was below estimate due to lower-than-expected revenue. Adjusted net profit was in line with estimates due to a lower than expected tax rate. Maintain buy.
IDBI Capital