M&M Finance has been among the top five gainers almost the entire session today; the stock price rose over 12.5% to hit an intraday high at Rs.201.85, with volumes surging over two times. Its 52-week high is at Rs.236.

The company’s monthly update was very good – for Sept’22, aided by macro tailwinds, the company said that business continued its momentum with disbursement of approximately Rs. 4,080 crore, delivering a 110% Y-o-Y growth. This translates to a Y-o-Y growth of 82% in Q2 FY23 and 106% for H1 FY23. The first half is estimated to clock a disbursement of approximately Rs. 21,300 crores.

Healthy disbursement trends during the first half have led to a strong gross asset book of approximately Rs. 73,900 crores, growing 3% (MoM).  This has also resulted in Y-o-Y growth of 16% v/s 14% (QoQ).

The collection efficiency (CE) was at 98% v/s 96% (MoM).

As on 30th September 2022, the company expects its Gross Stage 3 to be around 7% (compared to 8% as of 30th June 2022) and Gross Stage 2 to be around 10% (compared to 11.7% as of 30th June 2022). The company said that it continued to enjoy a comfortable liquidity position on its Balance Sheet, with a liquidity chest of over 3 months.