Sharekhan has given Buy recommendation for Mahindra and Mahindra with a target price of Rs. 1000 in its research report issued on May 28, 2021
Sharekhan’s research report on Mahindra and Mahindra
M&M’s Q4FY2021 results were slightly below expectations due to lower EBITDA margin than estimates. Adjusted standalone PAT grew strongly by 189.8% y-o-y to Rs. 935. We firmly believe M&M is on a right track with its roadmap for its automotive and farm equipment division. Moreover, M&M is expected to benefit from the turnaround of its loss-making subsidiaries and generate strong cash flows going forward. The stock is attractively valued at a P/E multiple of 16.6x and EV/EBITDA multiple of 9.2x its FY2023E estimates.
We retain our Buy rating on Mahindra and Mahindra (M&M) with an unchanged PT of Rs. 1,000, factoring positive outlook for its core businesses and improving fortunes of key subsidiary companies.