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Buy Mahindra and Mahindra; target of Rs 583: Sharekhan

Sharekhan is bullish on Mahindra and Mahindra has recommended buy rating on the stock with a target price of Rs 583 in its research report dated June 12, 2020.

June 16, 2020 / 09:56 PM IST
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Sharekhan's research report on Mahindra and Mahindra

Mahindra & Mahindra’s (MM+MVML) Q4FY2020 operating results were ahead of our as well as street estimates as the company managed to maintain margins despite the steep fall in the topline. Going ahead, management expects quicker recovery in rural areas driven by record rabi production, higher MSP’s, outlook of a normal monsoon and increased rural spending by Government. We expect M&M to perform better than other automotive players given it derives 35% from tractor segment (which is a pure rural play) and also derives about half of the automotive volumes from the hinterlands. Valuations at 12.5x FY22 core earnings are lower than long term historical average of 15x.


We retain Buy rating on the stock with a revised PT of Rs. 583. M&M continues to remain our preferred pick in the automotive space.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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first published: Jun 16, 2020 09:56 pm

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