Buy Mahindra and Mahindra; target of Rs 1665: Sharekhan

Sharekhan's research report on Mahindra and Mahindra

Mahindra & Mahindra (M&M) clocked a 220-bps q-o-q improvement in EBITDA margin at 14.6% against an estimate of 12.8%. Company maintained its disciplined capital allocation approach and considered investment in RBL is of strategic nature for the long term.

Outlook

We maintain our Buy rating on M&M with a revised SOTP based PT of Rs 1,665 due to healthy robust order book in PV segment, market leadership in tractor segment, opportunity to grow in farm machinery segment and its road map to play in EV space. Stock trades at P/E multiple of 16.2xand EV/EBITDA multiple of 10x its FY25E estimates.