Motilal Oswal Maintains Buy Rating for MAS Financial Services, Target Price Rs 410

Motilal Oswal Reiterates Buy on MAS Financial Services

MAS Financial (MASFIN) has reported its financial results for the fourth quarter of fiscal year 2026, showcasing a growth of approximately 23% year-over-year (YoY) in Profit After Tax (PAT) to INR997m, in line with expectations. For the full fiscal year 2026, the company's PAT grew around 20% YoY to INR3.7 billion.

In terms of revenue, the net total income in the fourth quarter of fiscal year 2026 saw a significant increase of 30% YoY to INR2.9 billion, outperforming estimates by around 11%. Operating expenses grew approximately 40% YoY to INR1 billion, exceeding estimates by around 5%. Profit Before Tax (PBT) stood at INR1.9 billion, representing a 14% beat and a growth of 26% YoY. For the full fiscal year 2026, PBT grew around 25% YoY to INR6.7 billion.

Credit costs in the fourth quarter of fiscal year 2026 increased by approximately 35% YoY to around INR575 million, resulting in an annualized credit cost of 1.6%. This compares to 1.2% in the previous quarter and 1.4% in the same quarter last year.

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MAS Financial Services Outlook

Motilal Oswal estimates that the company's Assets Under Management (AUM) and PAT will grow at a compound annual growth rate (CAGR) of 18% and 20%, respectively, over the fiscal years 2026-2028. The research firm also projects a Return on Assets (RoA) and Return on Equity (RoE) of approximately 2.9% and 15%, respectively, in fiscal year 2028.

Given the company's strong performance and growth prospects, Motilal Oswal reiterates its BUY recommendation on MAS Financial Services with a target price of INR410, based on 2 times the Book Value (BV) for fiscal year 2028.

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