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Buy Mahindra and Mahindra; target of Rs 680: ICICI Direct

ICICI Direct is bullish on Mahindra and Mahindra has recommended buy rating on the stock with a target price of Rs 680 in its research report dated November 11, 2019.

November 12, 2019 / 12:34 PM IST
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ICICI Direct's research report on Mahindra and Mahindra

Mahindra & Mahindra (M&M) reported a relatively decent performance in Q2FY20. Standalone net sales for the quarter were at Rs 11,076 crore (down 14.7% YoY), tracking automotive and tractor segment volume declines of 20.6% YoY & 8.0% YoY, respectively. Encouragingly, standalone EBITDA margins were unchanged QoQ at 12.6% (automotive EBIT margins down 70 bps to 4%, tractor EBIT margins unchanged at 19.3%). Consequent standalone PAT at Rs 1,213 crore (down 26.5% YoY) was aided by a jump in other income (Rs 605 crore received as dividends).


We retain our BUY rating on the stock with a revised target price of Rs 680/share wherein we value standalone operations at 6x EV/EBITDA (FY21E basis) and value its investments at 25% holdco discount.

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.

Broker Research
first published: Nov 12, 2019 12:34 pm

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