Prabhudas Lilladher Recommends Accumulating M&M Financial Services; Target Rs 395

• Prabhudas Lilladher recommends 'Accumulate' for Mahindra and Mahindra Financial Services with a target price of Rs 395.
• Q3 disbursement growth reached 7% YoY, driven by tractor, CV, and PV segments.
• AUM grew 12% YoY to Rs 1,289.6 billion, with projected growth of 13.5%/14% for FY26/FY27E.
• Expected improvement in FY27 spread due to favorable mix, higher fee income, and lower cost of funds.
• Asset quality showed slight improvement, with credit cost projected at 1.9%/1.8% for FY26/FY27E.

Why It Matters: Prabhudas Lilladher advises accumulating M&M Financial Services, setting a target of Rs 395 amid growth.