M&M Financial Services Ltd. is a leading NBFC focused on rural and semi-urban areas.

The company's core business is to provide loans for UV/CV's, tractors, cars, 2/3 wheelers, and construction equipments.

M&M-f is also involved in other financial activities such as Mutual fund distribution and Insurance broking.

Provides housing finance through its subsidiary Mahindra Rural Housing finance Ltd. The company believes this is the next growth driver.

M&M-f also offers fixed deposit schemes and personal Loans and recently Stepped into Loan against Gold scheme.

M&Mf has added over 2 lakh new customers in FY11 with a total customer base of over 12 lakh customers.

M&Mf has more than 500 branches in 25 states and 2 UT's all the way up from J&K to Sikkim, Tripura & Meghalaya to Andaman & Nicobar.

Has about 9000 employees of which more than 70% are from rural areas such as Vasda, Dahod, and Bardoli in Gujarat; Patankot and Hoshiapur in Punjab; Hoogly and Burdwan in West Bengal; Jalgaon, Dhulia, Chandrapur, and Akola in Maharashtra; Tirunelveli and Salem in Tamil Nadu; Guna and Sagar in Madhya Pradesh; Purnia in Bihar as well as Banswada, Nagour, Ganganagar in Rajashthan (all this is just to give a sense of their reach )

Financials - March 10 - March 09 - March 08:

Total Income: 1595.60 - 1400.45 - 1236.65 Crore

Net Profit: 355.82 - 219.70 - 181.14 Crore

EPS: 35.77 - 22.00 - 18.23

Dividend: 75% - 55% - 45%

Book Value: 182.83 - 154.88 - 138.75

RoE: 21.98 - 15.66 - 17.22

RoCE: 13.92 - 12.93 - 12.15

Mcap: 7074 Cr (@ Rs. 727/-)

What separates M&M financial services from other NBFC's is its focus on the Bottom of the pyramids i.e. rural India which accounts for more than 70% of population.

With corruption & scandals breaking out every day and corporate governance issues, picking stocks has become very risky. Also, Banking & financial sector itself is going through deep correction in the last few days and I have taken this opportunity and purchased very small quantity of M&M-f at around Rs. 730.

I woul like fellow Teddies to give their gyan on this stock, based on which I am planning to accumulate this one in my portfolio.