Motilal Oswal maintains a Buy rating on Mahindra & Mahindra Financial Services Ltd. with a target price of ₹430, implying approximately 21% upside from the current market price of ₹355. According to reports from NDTV Profit, the brokerage's bullish outlook is driven by the company's Udaan-led digital transformation initiatives and operational efficiency improvements. The latest research report dated September 21, 2026 reinforces this recommendation based on comprehensive visits to the central processing center and practical implementation observations.
The brokerage highlights several key digital initiatives as growth catalysts for Mahindra Finance. As reported by NDTV Profit, Udaan is emerging as a meaningful competitive lever, supporting faster turnaround times, data-led underwriting, and CPC automation. The latest research report provides detailed insights into practical implementation, including visits to the central processing center where management provided comprehensive insights into the digital transformation strategy. Digital onboarding, automated underwriting and AI-led processing are identified as key drivers of scale, efficiency and cross-selling opportunities, with these solutions designed to enhance growth, productivity and dealer conversion across operations.
According to the latest research report, rising Samur.AI adoption and higher branch-led cross-selling opportunities are expected to provide further operating leverage and fee-income opportunities. The brokerage's practical observations at a tractor dealership in Pune demonstrated live implementation of these initiatives, including the M TEZZ app and Samur.AI-enabled automation in action. These technological and operational improvements are positioned to support the company's earnings growth trajectory and operational efficiency gains.
The company is projected to deliver a PAT CAGR of ~23% over FY26-FY28E with RoA/RoE of 2.4%/14.5% in FY28E. As per the latest research report, Mahindra Finance currently trades at 1.8x FY27E P/BV and 14x FY27E P/E. The target price of ₹430 is based on 2x Mar'28E BV, reflecting the company's strong growth prospects and operational improvements from its digital transformation initiatives.
