Buy Mahindra and Mahindra; target of Rs 1550: Sharekhan

Sharekhan's research report on Mahindra and Mahindra

M&M continued to deliver strong numbers in Q2FY2023, with EBITDA exceeding expectations by 6.5%. We firmly believe that M&M is on track with its growth roadmap. The company is taking a leap towards creating a strong product portfolio for passenger electric vehicles (EVs), besides its aggressive plans for farm equipment and ICE passenger car segments. EVs would be the next growth driver, driven by investments in product development, new launches, and focus on technical partnerships.

Outlook

We retain our Buy rating on M&M with an unchanged PT of Rs. 1,550, led by increasing focus on new launches and rising brand value of its core SUV products. The stock trades at a P/E multiple of 17.8x and EV/EBITDA multiple of 11.4x its FY2024E estimates.