Dolat Capital is bullish on Mahindra and Mahindra (M&M) and has recommended accumulate rating on the stock with a target of Rs 808 in its August 08, 2012 research report.
“M&M reported top-line revenue at ` 93.7bn, up 40% YoY led by 15% YoY volume growth. The auto sector volumes grew 24% YoY, while tractor sales were down 1% YoY. The company’s utility vehicle sales rose 32% YoY to 58,615 units and had a market share of 49.8% in the quarter. It also sold 2,888 Verito cars. M&M’s exports in Q1 were up 37% to 7,841 units. The company’s operating margins improved 150bps QoQ to 11.8%. EBIDTA for the quarter was ` 11.1bn, up 24% YoY. This was mainly led by lower other expenses. The company reported its PAT at ` 7.25bn, up 20% YoY. EPS for the quarter was ` 12.4.”
“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 7% in FY13. The stock is currently trading at a P/E of 13.7x FY14E. We recommend Accumulate on the stock,” says Dolat Capital research report. Bodies Corporate holding more than 50% 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 on the attachment
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