{"id":323829,"date":"2026-10-22T12:47:57","date_gmt":"2026-10-22T07:17:57","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=323829"},"modified":"2026-10-22T12:47:57","modified_gmt":"2026-10-22T07:17:57","slug":"mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/","title":{"rendered":"M&#038;M Financial Share Price Plunges 10% After Q2 Results: Should You Buy, Sell or Hold?"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>M&#038;M Financial share price fell as much as 9.8% to an intraday low of Rs 268.25 on 22 Oct 2026 from the previous close of Rs 297.45, my calculation, and traded at Rs 283.45, down 4.7%, at 12:31 PM IST. The fall came a day after Q2 FY27 results showed standalone profit up 55% to Rs 882 crore. One brokerage report names tractor-loan asset quality, funding costs and insurance distribution reforms as concerns, but the company has not explained the fall.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">M&#038;M Financial share price fell as much as 9.8% to Rs 268.25 even though Q2 FY27 standalone profit rose 55% to Rs 882 crore. Analyst commentary points to worries over tractor-loan asset quality, rising funding costs and possible insurance distribution reforms, and Nomura cut its target price to Rs 400 from Rs 415. At Rs 283.45 the stock trades near 12 times trailing earnings by my calculation, below the industry multiple of about 17 times. The results are strong and the reaction is sharp, so a long-term holder may wait for stability while a new buyer should size the position carefully.<\/p>\n<\/p><\/div>\n<p>M&#038;M Financial share price dropped sharply on Thursday, a surprise given that profit rose 55%, credit costs fell and asset quality improved in the September quarter. The stock opened at Rs 289.90, touched a high of Rs 290 and then slid to Rs 268.25 before recovering part of the loss, which suggests heavy selling by holders after the results.<\/p>\n<p>This article on M&#038;M Financial share price sets out the Q2 FY27 numbers, the reasons analysts give for the fall, the target prices, the valuation and a balanced buy, sell or hold view. It is educational and not a recommendation, and where sources conflict I say so.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#M_M_Financial_Share_Price_Today_Price_Action\" title=\"M&#038;M Financial Share Price Today: Price Action\">M&#038;M Financial Share Price Today: Price Action<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#M_M_Financial_Share_Price_and_the_Q2_FY27_Results\" title=\"M&#038;M Financial Share Price and the Q2 FY27 Results\">M&#038;M Financial Share Price and the Q2 FY27 Results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#Asset_Quality_Behind_the_M_M_Financial_Share_Price\" title=\"Asset Quality Behind the M&#038;M Financial Share Price\">Asset Quality Behind the M&#038;M Financial Share Price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#Why_Did_the_M_M_Financial_Share_Price_Fall\" title=\"Why Did the M&#038;M Financial Share Price Fall?\">Why Did the M&#038;M Financial Share Price Fall?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#M_M_Financial_Share_Price_Valuation\" title=\"M&#038;M Financial Share Price Valuation\">M&#038;M Financial Share Price Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#M_M_Financial_Share_Price_Buy_Sell_or_Hold\" title=\"M&#038;M Financial Share Price: Buy, Sell or Hold?\">M&#038;M Financial Share Price: Buy, Sell or Hold?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#What_to_Watch_Next_on_the_M_M_Financial_Share_Price\" title=\"What to Watch Next on the M&#038;M Financial Share Price\">What to Watch Next on the M&#038;M Financial Share Price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#Why_did_the_M_M_Financial_share_price_fall_after_Q2_results\" title=\"Why did the M&#038;M Financial share price fall after Q2 results?\">Why did the M&#038;M Financial share price fall after Q2 results?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#What_were_the_Q2_FY27_results_of_M_M_Financial\" title=\"What were the Q2 FY27 results of M&#038;M Financial?\">What were the Q2 FY27 results of M&#038;M Financial?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#What_is_the_target_price_after_the_M_M_Financial_share_price_fall\" title=\"What is the target price after the M&#038;M Financial share price fall?\">What is the target price after the M&#038;M Financial share price fall?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#Is_the_M_M_Financial_share_price_undervalued_now\" title=\"Is the M&#038;M Financial share price undervalued now?\">Is the M&#038;M Financial share price undervalued now?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#How_is_asset_quality_at_M_M_Financial\" title=\"How is asset quality at M&#038;M Financial?\">How is asset quality at M&#038;M Financial?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#What_is_the_52-week_range_of_the_M_M_Financial_share_price\" title=\"What is the 52-week range of the M&#038;M Financial share price?\">What is the 52-week range of the M&#038;M Financial share price?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#Should_I_buy_sell_or_hold_after_the_M_M_Financial_share_price_fall\" title=\"Should I buy, sell or hold after the M&#038;M Financial share price fall?\">Should I buy, sell or hold after the M&#038;M Financial share price fall?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/mm-financial-share-price-plunges-10-percent-after-q2-fy27-results-should-you-buy-sell-or-hold\/#Is_this_article_investment_advice\" title=\"Is this article investment advice?\">Is this article investment advice?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"M_M_Financial_Share_Price_Today_Price_Action\"><\/span><strong>M&#038;M Financial Share Price Today: Price Action<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">M&#038;M Financial share price: point<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Level on 22 Oct 2026<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Previous close<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 297.45<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Open<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 289.90<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Day high<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 290.00<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Day low<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 268.25, down about 9.8% (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price at 12:31 PM<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 283.45, down 4.7%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Volume<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 1.03 crore shares<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Listed 52-week range<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 272.65 to Rs 415<\/td>\n<\/tr>\n<\/table>\n<p>The intraday low is below the listed 52-week low of Rs 272.65, though the data feed may lag, so treat the new-low reading with care. The headline says the M&#038;M Financial share price plunged 10%, and the low is within a fraction of that; the stock has since recovered about 5.7% from the low (my calculation). One report put the day&#8217;s low at Rs 368 on the BSE, which does not fit the other prices I found, so I rely on exchange prices from the live quote.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Track falling stocks and results reactions on the Univest screeners page<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"M_M_Financial_Share_Price_and_the_Q2_FY27_Results\"><\/span><strong>M&#038;M Financial Share Price and the Q2 FY27 Results<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">M&#038;M Financial share price: Q2 FY27 standalone metric<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Q2 FY26<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Q2 FY27<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Net profit (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">569<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">882, up 55%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Total income (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">4,489<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">5,175<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Pre-provisioning operating profit (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,499<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,791<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Disbursements (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">13,514<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">16,499, up 22%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Business AUM (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,27,246<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,46,512, up about 15% (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Credit cost ratio<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">2.2%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1.6%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Return on assets<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1.6%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">2.2%<\/td>\n<\/tr>\n<\/table>\n<p>Consolidated profit rose 61% to Rs 911 crore from Rs 566 crore, and consolidated total assets grew 21% to Rs 1.80 lakh crore. For the first half, standalone profit rose 62% to Rs 1,780 crore. Net interest income rose 17% to Rs 2,822 crore and the net interest margin stayed at about 7%. One report shows profit up 55% and another shows consolidated profit up 61%, which is not a conflict because they cover standalone and consolidated figures.<\/p>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to follow results and stock alerts.<\/em><\/p>\n<p><strong>Risk:<\/strong> A stock can fall after good results if the market had already priced in a better quarter or sees risks that the headline numbers do not show.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Asset_Quality_Behind_the_M_M_Financial_Share_Price\"><\/span><strong>Asset Quality Behind the M&#038;M Financial Share Price<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">M&#038;M Financial share price: asset quality metric<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Q2 FY26<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Q2 FY27<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Stage 3 assets<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">3.9%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">3.4%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Stage 2 assets<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">5.8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">4.7%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Collection efficiency<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">96%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">97%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Provision coverage on Stage 3<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not available<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">56.6%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Capital adequacy ratio<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not available<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">18%; Tier 1 at 16.2%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Liquidity buffer<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not available<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Over Rs 16,150 crore<\/td>\n<\/tr>\n<\/table>\n<p>On the reported numbers asset quality improved on every measure, which is why the sell-off surprised many investors. The business is about 80% wheel-linked lending such as vehicles and tractors and about 20% non-wheel, so a weakness in tractor loans would matter to the M&#038;M Financial share price. That concern is a forward-looking worry in analyst notes, and I could not find tractor-loan delinquency figures to confirm it.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Did_the_M_M_Financial_Share_Price_Fall\"><\/span><strong>Why Did the M&#038;M Financial Share Price Fall?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The company has not given a reason. A report on analyst reactions names three concerns: tractor-loan asset quality, rising funding costs and risks from proposed insurance distribution reforms, which could affect fee income. Nomura expects annualised credit costs of 1.8% in Q3 and Q4 FY27, against 1.7% in the first half, and assumes funding costs rise by 70 basis points over five quarters. Those assumptions point to margin pressure ahead, which my reading suggests is what investors are selling. A lender&#8217;s margin is the gap between what it earns on loans and what it pays for money, so a rise in funding costs of 70 basis points matters even when loan growth is strong. The M&#038;M Financial share price therefore reflects fears about next year&#8217;s margin more than last quarter&#8217;s profit, and it explains why the Nomura target price fell while the rating stayed at Buy.<\/p>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">M&#038;M Financial share price: brokerage view<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Rating<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Target<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Stated upside<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Nomura<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Buy<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 400, cut from Rs 415<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">35%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Motilal Oswal<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Buy<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 375<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">26%<\/td>\n<\/tr>\n<\/table>\n<p>The stated upsides imply a share price near Rs 296 to Rs 298, which was the previous close, so they were struck before today&#8217;s fall. At Rs 283.45 the upside to the Nomura target price is about 41% and to the Motilal Oswal target about 32% by my calculation. The Nomura target price cut came with lower FY27 to FY29 profit estimates, by 1% to 9%. Motilal Oswal sees about 14% AUM growth and 18% profit growth a year over FY26 to FY28, with an FY28 return on assets of 2.2% and return on equity of 13.5%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"M_M_Financial_Share_Price_Valuation\"><\/span><strong>M&#038;M Financial Share Price Valuation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">M&#038;M Financial share price: valuation measure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Figure<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market capitalisation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 41,358 crore<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Trailing EPS<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 23.45<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">P\/E at Rs 283.45<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 12.1 times (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Industry P\/E<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">17.28 times<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Book value per share<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 191.62<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to book at Rs 283.45<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 1.48 times (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Return on equity<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">10.72%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Dividend yield<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">2.52%<\/td>\n<\/tr>\n<\/table>\n<p>At about 12 times earnings and under 1.5 times book, the M&#038;M Financial share price looks undervalued against the industry, but a lender with a return on equity near 10.7% does not earn a high multiple. Debt to equity of 4.82 is normal for a finance company, but it makes the stock sensitive to funding costs, which is exactly what analysts are watching.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"M_M_Financial_Share_Price_Buy_Sell_or_Hold\"><\/span><strong>M&#038;M Financial Share Price: Buy, Sell or Hold?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">M&#038;M Financial share price: investor type (my reading)<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Points to weigh<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Existing long-term holder<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Results and asset quality are strong, targets are far above the price, but the funding cost risk is real; many would hold and watch<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">New buyer<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The valuation is lower after the fall, but the stock may stay volatile; staggered buying limits timing risk<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Short-term trader<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The break below Rs 290 and the new low area make the next support unclear; use strict stop-losses<\/td>\n<\/tr>\n<\/table>\n<p>This is an educational view and not advice. The fall happened despite strong numbers, which shows the market is looking at next year and not at last quarter. If tractor demand holds and funding costs stay stable, the fall may prove an overreaction; if credit costs rise as Nomura expects, the stock could stay under pressure.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_Watch_Next_on_the_M_M_Financial_Share_Price\"><\/span><strong>What to Watch Next on the M&#038;M Financial Share Price<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Whether the M&#038;M Financial share price holds above the Rs 268.25 intraday low<\/li>\n<li>Management comments on tractor-loan collections and rural demand<\/li>\n<li>Funding costs and the net interest margin in the next quarter, which will drive the M&#038;M Financial share price<\/li>\n<li>Credit costs against the 1.8% that Nomura expects for Q3 and Q4, and any further change to the Nomura target price<\/li>\n<li>Any final rules on insurance distribution that could affect fee income<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The M&#038;M Financial share price fell as much as 9.8% even though profit rose 55% and asset quality improved. The valuation near 12 times earnings is modest, and both brokerages kept a Buy rating, but credit and funding cost risks explain the nervousness. Read the filings, keep your position size sensible and decide on your own horizon.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_the_M_M_Financial_share_price_fall_after_Q2_results\"><\/span><strong>Why did the M&#038;M Financial share price fall after Q2 results?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The company has not said. Analyst commentary points to tractor-loan asset quality, rising funding costs and insurance distribution reforms. The Nomura target price was cut to Rs 400 from Rs 415.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_were_the_Q2_FY27_results_of_M_M_Financial\"><\/span><strong>What were the Q2 FY27 results of M&#038;M Financial?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Standalone profit rose 55% to Rs 882 crore, disbursements rose 22% to Rs 16,499 crore and the credit cost ratio fell to 1.6% from 2.2%. Consolidated profit rose 61% to Rs 911 crore.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_target_price_after_the_M_M_Financial_share_price_fall\"><\/span><strong>What is the target price after the M&#038;M Financial share price fall?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Nomura has a Buy with a target of Rs 400 and Motilal Oswal has a Buy with a target of Rs 375. Both were set before the fall, and I give no target of my own.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_M_M_Financial_share_price_undervalued_now\"><\/span><strong>Is the M&#038;M Financial share price undervalued now?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> At Rs 283.45 the P\/E is about 12.1 times by my calculation, against an industry P\/E of 17.28, and the price to book is about 1.48. Return on equity of 10.72% explains part of the lower multiple.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_is_asset_quality_at_M_M_Financial\"><\/span><strong>How is asset quality at M&#038;M Financial?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Stage 3 assets fell to 3.4% from 3.9%, Stage 2 assets fell to 4.7% from 5.8% and collection efficiency rose to 97%. The worry is about the future in tractor loans, which I could not verify.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_52-week_range_of_the_M_M_Financial_share_price\"><\/span><strong>What is the 52-week range of the M&#038;M Financial share price?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The listed range is Rs 272.65 to Rs 415, and the intraday low of Rs 268.25 today is below it. The data feed may lag, so check the exchange for the confirmed low.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Should_I_buy_sell_or_hold_after_the_M_M_Financial_share_price_fall\"><\/span><strong>Should I buy, sell or hold after the M&#038;M Financial share price fall?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> That depends on your horizon and risk limit. Strong results and lower valuation support holders, but funding and credit cost risks mean new buyers should stagger purchases. This is not advice.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_this_article_investment_advice\"><\/span><strong>Is this article investment advice?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Why did the M&M Financial share price fall after Q2 results?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The company has not said. Analyst commentary points to tractor-loan asset quality, rising funding costs and insurance distribution reforms. The Nomura target price was cut to Rs 400 from Rs 415.\"}},{\"@type\":\"Question\",\"name\":\"What were the Q2 FY27 results of M&M Financial?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Standalone profit rose 55% to Rs 882 crore, disbursements rose 22% to Rs 16,499 crore and the credit cost ratio fell to 1.6% from 2.2%. Consolidated profit rose 61% to Rs 911 crore.\"}},{\"@type\":\"Question\",\"name\":\"What is the target price after the M&M Financial share price fall?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Nomura has a Buy with a target of Rs 400 and Motilal Oswal has a Buy with a target of Rs 375. Both were set before the fall, and I give no target of my own.\"}},{\"@type\":\"Question\",\"name\":\"Is the M&M Financial share price undervalued now?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"At Rs 283.45 the P\/E is about 12.1 times by my calculation, against an industry P\/E of 17.28, and the price to book is about 1.48. 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Strong results and lower valuation support holders, but funding and credit cost risks mean new buyers should stagger purchases. This is not advice.\"}},{\"@type\":\"Question\",\"name\":\"Is this article investment advice?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>M&#038;M Financial share price fell up to 9.8% despite a 55% Q2 FY27 profit rise. Results, asset quality, Nomura and Motilal targets, valuation and a buy, sell or hold view.<\/p>\n","protected":false},"author":29,"featured_media":323826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[14837,14834,14833,14831,14832,14838,5355,14835,14839,14836],"class_list":["post-323829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-buy-sell-or-hold","tag-mm-finance-target-price","tag-mm-financial-q2-fy27-results","tag-mm-financial-share-price","tag-mahindra-finance-share-price","tag-mmfin-share-price","tag-nbfc-stocks","tag-nomura-target-price","tag-stocks-falling-today","tag-tractor-loan-asset-quality"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["323826"],"rank_math_title":["M&amp;M Financial Share Price Falls 10% on Q2: Buy, Sell or Hold?"],"rank_math_description":["M&amp;M Financial share price fell up to 10% despite a 55% Q2 profit jump. 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