Accumulate M&M; target of Rs 930: Dolat Capital

Dolat Capital is bullish on Mahindra and Mahindra (M&M) and has recommended buy rating on the stock with a target of Rs 930 in its October 25, 2012 research report.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney SME Special
moneycontrol.com

Home » News » Recommendations

Nov 02, 2012, 03.15 PM | Source: Moneycontrol.com

Accumulate M&M; target of Rs 930: Dolat Capital

Dolat Capital is bullish on Mahindra and Mahindra (M&M) and has recommended buy rating on the stock with a target of Rs 930 in its October 25, 2012 research report.

Like this story, share it with millions of investors on M3

Accumulate M&M; target of Rs 930: Dolat Capital

Dolat Capital is bullish on Mahindra and Mahindra (M&M) and has recommended buy rating on the stock with a target of Rs 930 in its October 25, 2012 research report.

Post Your Comments

Share Cancel

(more)

, Dolat Capital |

Dolat Capital is bullish on Mahindra and Mahindra (M&M) and has recommended buy rating on the stock with a target of Rs 930 in its October 25, 2012 research report.

“M&M reported top-line revenue at Rs 98.1bn, up 33% YoY led by 17% YoY volume growth. The auto sector volumes grew 26% YoY, while tractor sales were down 1% YoY. M&M’s exports in Q2 were up 87% to 10,349 units. Average realization was up 2% QoQ led by high-end product sales.”

“The company’s operating margins declined 40bps QoQ to 11.4%. EBIDTA for the quarter was Rs 11.2bn, up 28% YoY. The decline was mainly led by higher other expenses. The company reported its PAT at Rs 9.1bn, up 22% YoY. EPS for the quarter was Rs 15.4. This was primarily led by a one-time dividend by its subsidiaries to the tune of Rs 1.7bn.”

“We remain positive on M&M as it continues to post robust growth. With launches (Yuvraaj, the new XUV-500, GIO, Maxximo and Mahindra Navistar trucks) and new markets, we expect the growth momentum to continue. Macro headwinds may affect the demand in the tractor segment. Accordingly, we estimate volume growth of 3% in FY13. The stock is currently trading at a P/E of 14.2x FY14E. We recommend accumulate on the stock,” says Dolat Capital research report.

Non-Institutions holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Accumulate M&M; target of Rs 930: Dolat Capital

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login