MAS Financial Services - High RoEs, Decent Growth

Stock Opportunities
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Last week, MAS Financial services decided to give 3 rupees dividend and this week they are considering issue of bonus shares. In today’s time where every financial institution is rising capital, why MAS spending the reserves through dividend and Bonus issue.

Disc : Invested.

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I don’t see a problem in paying dividends , the company is placed comfortably on Capital (CAR of 24-25% and healthy ROE) this should suffice the company’s growth.

Also, bonus shares has no cash impact. It’s basically an accounting exercise. Reallocation of retained reserves to share capital.

Typically , liquidity increases after bonus issues (as there are more number of shares floating); so this may lead to better price discovery. Other than this I don’t see much upside or downside.

Disclaimer : I’m invested

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68

I was fan of mr.kamlesh and Lt.mukesh ji.
But now my perception about the industry has changed, it’s old era when there is one sided credit demand and 4 or 5 active NBFCs are there.
But now 40+ NBFCs r active , and there is huge competition.
For secure lending there is no space for mas.
And they r not good at unsecured lending. So if I like secure lender then I will go with canara bank like psu. Where 14+ ROE. And 3% div yield. And highest level of corporate governance is there.
And If I like unsecured lending then we can choose Arman or credit access gramin.
So for me mas is not going anywhere in next 5 yr. after jio’s entry.

Disc. Sold

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69

Recently i stumbled on this stock as one large investor added it in his PMS in Q3 FY24

Some positives

  1. P/B of 2.7 vis a vis median P/B of 3.5 & peak of 6
  2. No. of shareholders stagnating. Shareholding change hands in Q3 as public shareholding reduced by 6%, further promoter FII/DII increasing stake for last 2 quarters from 10% in Q3 FY24 to 24% in Q1 FY25
  3. ROE of 15, TTM sales growth rate of 27%, 20%+ profit growth for last 3 yrs,
  4. Decent Loan book growth of 24%…a tad lower but not as agressive as 35% seen by leaders
  5. Leverage of 4.3x while leaders are at 6-7x. so scope to borrow more to fund the growth
  6. Low Mcap of 5300k Cr
  7. 28% capex in FA
    8.stock has not moved much in last 2-3 quarters

Disclaimer- Invested via Advisor & added more after analysing these number

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