Mahindra Finance just smashed its 52-week low of ₹231 back in early 2025 and rocketed to a fresh high near ₹391 this week. That's almost 70% up in months – wild, right? Wondering if this NBFC beast is gearing up for a monster rally?
What's Fueling This Jump?
Rural India woke up. After a slowdown hit tractors and loans hard, demand bounced back big time. Q2 FY26 profits jumped 45% year-on-year, collections hit 95%, and asset quality cleaned up nice. A ₹3,000 crore rights issue pumped liquidity over ₹10,000 crore, plus AAA ratings stayed rock solid. Festive season kicked in too – think farmers buying new Mahindra tractors post-monsoon. Stock broke out of a multi-year triangle pattern above ₹360. Feels like momentum's building, but watch for any rural hiccups.
Brothers KC and JC Mahindra kicked off the parent company in 1945 trading steel, then pivoted to Jeeps. Finance arm launched in 1991 as Maxi Motors, renamed Mahindra & Mahindra Financial Services soon after. Promoter Mahindra & Mahindra owns 52% still, giving it that family-trust vibe. Solid roots in autos help – they know rural buyers inside out.
Simple business: lend to folks banks ignore, mostly rural and small towns. Core is vehicle loans – new tractors, cars, trucks, even pre-owned stuff. They do SME working capital, housing for villages, plus insurance broking and mutual funds via subs. Loan book? Over ₹82,000 crore, 1,386 branches pan-India. Profits from interest spreads, cross-sell insurance. Low ROE lately (10-11%), but rural revival could fix that. Like a village moneylender, but with Mahindra muscle.
Short-term, could test ₹430 if rural stays hot. For 2026, eyes on ₹370-380, riding 19% revenue growth. By 2030? Models say ₹900-1,000 if NBFC sector booms and they grab more market share. Stretch to 2035 at ₹1,400-1,600, assuming steady 15% AUM growth. 2040? Wild guess ₹2,000+ if India urbanizes rural finance – but hey, who knows, economy could flip. All the predictions are my personal opinion and not guaranteed by any financial planners or institutions.
