M&M Finance: High on hopes

Sept quarter was the third straight period of dismal show but share price has gained 60% in 2017

When a company’s performance is weak in fundamentals, it is logical that its stock price reflects this. In such cases, the stock price tends to remain under pressure or even underperforms the market. 

However, this logic doesn’t seem to apply for M&M Financial Services. The performance has remained subdued on key parameters for quite some time. Yet, its stock has gained nearly 60 per cent year-to-date in 2017, brushing aside the fundamentals. It has also outperformed some of its non-banking finance (NBFC) peers.

There are reasons for this divergence between its financial performance and stock price. However, it is also