Angel Broking has maintained its buy rating on Mahindra and Mahindra with a revised target price of Rs 731 in its May 29, 2008 research report. "For 4QFY2008, Mahindra and Mahindra (M&M) clocked net sales of Rs 3148 crore, which was marginally above our expectation of Rs 3021 crore. There was an exceptional profit of Rs 13.9 crore during the quarter, arising mainly from a merger scheme of subsidiaries approved by the High Court of Bombay. Net Profit for the quarter after Exceptional Items, Prior Period Adjustments and Taxation stood at Rs 207.2 crore, down 9.1% yoy."

"At the CMP, M&M is trading at 15.2x FY2009E and 13.3x FY2010E Earnings. High growth potential of M&M’s subsidiaries is expected to unlock actual value of the stock. Our SOTP target price for M&M works out to Rs731 wherein its core business fetches Rs 373 and value of investments works out to Rs 358. We maintain a Buy on the stock, with a revised target price of Rs 731 (Rs 754)," says Angel's research report.

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