Sharekhan's research report on Mahindra and Mahindra
British International Investment has committed to invest up to $250 million in M&M’s passenger electric vehicle subsidiary (EVCo) at a valuation of $5.1-8.8 billion. More investors likely to invest in EVCo at a later stage. Promoters, along with investors would infuse ~Rs. 10,000 crore in the new EVCo between FY22-FY27, to launch five EV models, and leverage from M&M’s ecosystem of suppliers, dealers and financers. We firmly believe that M&M is on track with its growth roadmap. In addition to its aggressive plans for farm equipment and ICE passenger car segments, the company is taking a leap towards creating a strong product portfolio for passenger electric vehicles.
We expect EVCo to add Rs. 132 per share to our SOTP. Reiterate buy rating on the stock with a revised PT of Rs. 1,390. Stock trades a P/E multiple of 17.6x and EV/EBITDA multiple of 11x its FY24E estimates.
At 17:30 Mahindra and Mahindra was quoting at Rs 1,132.65, down Rs 0.70, or 0.06 percent.
It has touched an intraday high of Rs 1,191.90 and an intraday low of Rs 1,127.00.
It was trading with volumes of 398,474 shares, compared to its thirty day average of 147,008 shares, an increase of 171.06 percent.
In the previous trading session, the share closed up 2.57 percent or Rs 28.40 at Rs 1,133.35.
The share touched its 52-week high Rs 1,191.90 and 52-week low Rs 671.00 on 08 July, 2022 and 08 March, 2022, respectively.
Currently, it is trading 4.97 percent below its 52-week high and 68.8 percent above its 52-week low.
Market capitalisation stands at Rs 140,810.20 crore.For all recommendations report, click here
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