M&M Finance Q3 gets thumbs up despite sluggish disbursements; stock up 8%

The stock is up 8 per cent intraday as operating profits jumped by 19% due to cost efficiency; analysts expect rural economy to revive going ahead

Despite sluggish disbursements on a yearly basis in December 2019 quarter (Q3) and higher provisioning amid sagging automobile and the overall economy, the stock of Mahindra and Mahindra Financial Services (M&MFS) gained about 8 per cent intraday on Wednesday. While this was also partly supported by the overall bullish markets (BSE Sensex was up 0.7 per cent), improved operating performance and expectations of some recovery in rural demand has led to investor sentiments turning positive. The rural-focused vehicle financier announced its Q3 results on Tuesday post market hours.

Though the overall disbursements fell by around 4 per cent year-on-year, they