Buy Mahindra and Mahindra; target of Rs 2005: Motilal Oswal

Motilal Oswal's research report on Mahindra and Mahindra

Mahindra & Mahindra’s (MM) 3QFY24 operating performance was in line with our estimates. However, adj. PAT of INR24.5b (+10.7% YoY) beat our estimate of INR23.3b, led by higher other income and lower tax. Key growth drivers in FY25 are likely to be: i) SUV – the management’s guidance of midteens growth on the back of healthy demand and new launches; ii) tractors – recovery after the base correction led by better growth prospects vs. FY24.

Outlook

We maintain our FY24E/FY25E EPS and reiterate BUY with a TP of INR2,005 (based on FY26E SOTP; includes INR214 per share value for e-PV business).

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