M& M Fin Services shares are under selling pressure

Mahindra & Mahindra Financial Services, a lender with a major focus on rural India, came under selling pressure on Thursday after a major block deal was done on the counter at a price below the current quote.

M&M Fin Services has borne the brunt of a slowdown in rural growth owing to a tepid monsoon and a cut in rural incomes due to a variety of reasons. A block deal amounting to 54 lakh shares was done over 2 lots at a price of between 239.25-242 rupees a share.

M&M Fin Services fell 1.70 rupees, or 0.7 percent, to 248.10 rupees on the National Stock Exchange, where 34.8 lakh shares were traded compared with 9.92 lakh shares, which is the 5-day average.

The company's market capitalisation has fallen 14 percent to 14,250 crore rupees in the past one year. The stock trades at 2.36 times its book value of 106 rupees.

Image credit: Indiatimes