M&M Financial Shares: Breakout Above ₹258 Could Trigger Rally, Says SEBI Analyst

2025-09-03 05:00:46

(MENAFN- AsiaNet News)

M & M Financial stock is approaching a crucial juncture on its technical charts, facing resistance near its 55-day Exponential Moving Average (EMA).

According to SEBI-registered analyst Deepak Pal, sustaining above the ₹255–258 zone could open the door for further upside towards ₹272–275. He sees ₹250 acting as a strong support, and cautioned that a breakdown below this may lead to ₹242–245.

Pal noted that technical indicators suggest improving momentum, with the Parabolic SAR approaching prices, the MACD showing signs of recovery, and the Relative Strength Index (RSI) at 50.8 remaining neutral, with room for upside.

What Should Investors Do?

In the short term (2–3 weeks), Pal said that holding above ₹255–258 may fuel a move towards ₹272–275, while in the medium term (1–3 months), fundamental triggers such as the ICICI Lombard partnership, analyst upgrades, and upcoming Q2 FY26 earnings could support a rally towards ₹290–300, though risks like elevated provisions, rural demand slowdown, or weak results remain key watchpoints.

Fundamental Watch

In July 2025, M & M Financial reported Q1 FY26 results, with a 6% rise in net profit to ₹529 crore. However, margins were pressured by elevated provisions and weaker collection efficiency, leading to a 3% decline in stock price on the result day.

In August 2025, the company partnered with ICICI Lombard to distribute motor insurance through its rural network, strengthening its cross-selling opportunities. Around the same time, leading brokerages Geojit and Sharekhan revised their price targets to ₹295 and ₹300, respectively, implying an upside potential of 15%.

Earlier, during June–July 2025, the company declared a higher dividend of ₹6.50 per share, supported by an EPS of ₹4.06 for Q1 FY26.

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment shifted from 'bearish' to 'neutral' a day ago for this counter, amid 'extremely high' message volumes.

M & M Financial sentiment and message volume on Sep 3 as of 1:30 pm IST. | source: Stocktwits

M & M Financial shares have gained 37% year-to-date (YTD)

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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