Moneycontrol
Last Updated : Jun 15, 2020 02:10 PM IST | Source: Moneycontrol.com

Ideas For Profit | M&M Q4 FY20: Weak set of numbers; reasonable valuation make it a long-term buy

In this edition of Ideas for Profit today, Moneycontrol's Sakshi Batra discusses whether the valuations are attractive enough to make it a long term buy.

Amid the COVID-19 outbreak, Mahindra and Mahindra (M&M)  has posted a weak set of numbers with auto segment witnessing a sharp decline in its volumes. Farm equipment segment (FES), however, witnessed robust demand. Despite the lower volume, M&M could maintain its operating margin on the back of a decline in raw material prices, better product mix, and price hikes.

The stock has corrected over demand concerns, making the valuations very reasonable. This coupled with the company’s strong leadership in farm equipment segment (FES), the government’s focus on rural growth, a slew of new launches in auto segment make it a candidate for a long-term portfolio.

In this edition of  Ideas for Profit today, Moneycontrol's Sakshi Batra discusses whether the valuations are attractive enough to make it a long term buy.
First Published on Jun 15, 2020 02:10 pm
Sections