InCred sees 58% upside in MAS Financial despite 28% six-month slide
InCred Equities keeps its Add rating on MAS Financial Services with a Rs400 target despite a 28% six-month share price drop, according to Moody's.
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what happened
MAS Financial Services shares have slipped roughly 8.32% over the past two weeks and about 28.22% across six months, according to Moody's. Even so, InCred Equities sees 58.1% potential gain in the Gujarat-based non-bank lender and reiterated its Add recommendation with a Rs400 target price.
The brokerage highlighted solid quarterly earnings, demand from micro, small and medium enterprises, a diversified loan book and a broad network of distribution channels. It also urged investors to watch net interest margin softening, a gradual normalisation of asset quality, operating efficiency and measured growth. Consolidated net profit rose 23% year on year in the second quarter of FY2026-27, reaching Rs115.12 crore against Rs91.43 crore a year earlier.
On Friday the stock fell 3.69% to Rs244.10 on BSE, giving the company a market value of Rs4,429.28 crore. InCred's valuation is based on 1.9 times its FY28 forecast book value per share and 13 times FY28 forecast earnings per share. The risks it lists include slower-than-expected growth, persistent margin pressure and a sharp deterioration in asset quality.
why it matters
For a lender such as MAS Financial, net interest margins and loan quality drive returns, so the analysts' warnings on those measures carry as much weight as the profit growth. The gap between the current share price and InCred's target depends on whether margins hold at their present level.
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- Shares down 28% in 6 months but InCred is bullish on this stock with 58% future returns - Do you own? Check target price — Moody's, 31 October 2026 at 12:33 UTC
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