ICICI Direct's research report on Mahindra & Mahindra
Mahindra & Mahindra (M&M) reported a healthy operational performance in Q3FY21. Standalone net sales were at Rs 14,216 crore (up 15.2% YoY) – with automotive and tractor ASPs at Rs 6.92 lakh/unit (down 1.6% QoQ) and Rs 5.19 lakh/unit (flat QoQ), respectively. Standalone EBITDA margins at 16% dipped 12 bps QoQ, as operating leverage benefits cancelled out 150 bps contraction in gross margins. Automotive EBIT margins rose ~210 bps QoQ to 6.3% while tractor margins were down ~100 bps QoQ to 23.4%. Standalone PAT for the quarter came in at Rs 31 crore, impacted by a large impairment hit of Rs 1,692 crore in relation to long term investments.
Outlook
We value it at Rs 1,000/share on SOTP basis (8.5x FY23E EV/EBITDA for base business; 20% holding company discount to its investments; previous target: Rs 870).
For all recommendations report, click here
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
