Mahindra & Mahindra Financial Services (MMFS) saw its shares rise on Thursday after Nomura upgraded the stock to ‘Buy’ from ‘Hold’ and assigned a target price of ₹440.

The brokerage said the company is entering an early phase of diversification away from its traditional dependence on vehicle financing. The stock touched an intraday high of ₹367.75, up around 6%.

Nomura noted that MMFS’s asset mix has long been dominated by vehicle loans — 93% in March 2022, moderating only to 88% as of September 2025.

After several years of weak performance, the company has regained momentum, delivering 24% AUM CAGR in FY22–25 driven by growth in passenger vehicles, light commercial vehicles and new segments such as SME and personal loans.

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