Emkay Global Financial has given Buy recommendation for Mahindra and Mahindra with a target price of Rs. 1490 in its research report issued on Sep 12, 2022

Emkay Global Financial’s research report on Mahindra and Mahindra

We attended M&M’s EV day, where the company re-iterated its future EV strategies. The recently showcased electric XUV400 model has been developed at an investment of Rs5- 6bn. The model features a superior range and acceleration in comparison to peers in the non-luxury segment. Bookings and dispatches are expected to commence in Q4FY23. Post XUV400 launch, four more electric models under XUV and BE brands, based on a dedicated platform (INGLO), are scheduled for launch over December 2024 to October 2026. Investments relating to the platform and model development are expected at an aggregate of Rs100bn over FY22-27. M&M will collaborate with Volkswagen for components such as electric drivetrain, battery system, and battery cells. We remain positive on M&M due to its sales upcycle across segments and a large order book in PVs (270,000+ units). We have raised our FY23-25E EPS estimates by 3-7%, factoring an increase in volume assumptions.


We have built in FY22-25E revenue/earnings CAGRs at 23%/21%. We re-affirm Buy with a revised SOTP value of Rs1,490 (Rs1,390 earlier), based on 12x standalone Sep’24E EPS (DCF-based) and the value of subsidiaries/investments at Rs658/share.

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