Despite the turbulence in the non-banking financial sector on account of liquidity issues, investors continue to keep the faith in companies like Mahindra and Mahindra Financial Services (MMFS). The stock, in the last one month, gained over 19 per cent as compared to the 7 per cent rise in the Nifty Financial Services index.
Investors are betting on an improvement in the return on assets of the company to 2.5-3.0 per cent, from below 2 per cent a couple of years ago, as well as smaller impact of the current liquidity pressure on the company.
Among the positives for the stock are