Buy Mahindra and Mahindra; target of Rs 1450: Sharekhan

Sharekhan's research report on Mahindra and Mahindra

M&M continued to deliver strong numbers in Q1FY23, with revenue, EBITDA and PAT growing by 14.5% q-o-q, 20.3% q-o-q and 10.7% q-o-q, respectively. We firmly believe that M&M is on track with its growth roadmap. In addition to 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 (EVs). EVs would be the next growth driver, driven by investments in product development, new launches and focus on technical partnerships.

Outlook

We retain a Buy on M&M with a revised PT of Rs. 1,450, factoring robust outlook for core businesses and improving performance of key subsidiaries. stock trades a P/E multiple of 18.2x and EV/EBITDA multiple of 11.5x its FY24E estimates.

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