Buy Mahindra & Mahindra; target of Rs 1037: Edelweiss

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Edelweiss's research report on Mahindra & Mahindra

Mahindra & Mahindra’s (M&M)* Q4FY18 EBITDA of ~INR20bn (up 61% YoY) beat our estimate by 6% led by gross margin beat (third consecutive quarter) and cost reduction initiatives. We maintain adequate levers exist to manage cost pressures in FY19. Uptick in economic activity and normal monsoon would drive demand across segments in FY19. Management guided for tractor industry growth of 8-10% for FY19, with an upside risk.

Outlook

We estimate core EPS CAGR of 23% over FY18-20, led by strong UVs (operating leverage). We maintain ‘BUY/SO’ with SoTP-based TP of INR1,037 (14x FY20E core EPS, INR115 cash per share, INR309 for listed subsidiaries). At CMP, the stock trades at FY20E PER of 12.8x (ex. subsidiaries).

For all recommendations report, click here

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

Read More