Buy Mahindra and Mahindra; target of Rs 583: Sharekhan

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26 Aug, 2025 12:21

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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.

Outlook

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

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