Moneycontrol
Last Updated : Aug 20, 2018 11:27 AM IST | Source: Moneycontrol.com

Buy Mahindra & Mahindra: Equity99

We believe the company will post better volume growth aided by higher realisation. We are recommending a buy for short to long term, says Sumit Bilgaiyan of Equity99.

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Sumit Bilgaiyan

Equity99

Mahindra & Mahindra and MVML's EBIDTA grew 47 percent YoY while margin increased 260bp YoY at 15.8 percent. M&M+MVML's revenue grew 23 percent YoY led by 19 percent YoY growth in tractor volumes; while UV volumes grew 20 percent YoY. EBIT margin in FES segment came in at 20.9 percent while auto segment's EBIT margin came in at 9.4 percent led by improved product mix. Net realisation grew 3 percent YoY at Rs 5,58,100;

M&M+MVML's PAT grew by 64 percent YoY. Management has revised its tractor volume growth upwards at 12-14 percent from 8-10 percent earlier in FY19.

The company plans to launch three new products. Apart from these company also plans to launch an ICV in 5.5-16T segment during festive season.

Post these launches we believe the company will post better volume growth aided by higher realisation. We are recommending a buy for short to long term.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
First Published on Aug 20, 2018 11:27 am
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