Buy Mahindra & Mahindra; target of Rs 919: Edelweiss

Edelweiss's research report on Mahindra & Mahindra

Our recent meeting with Mahindra & Mahindra’s (M&M) management indicated their positive outlook on business led by: (1) strong rural demand; (2) four new launches in utility vehicles (UVs) alongwith upgrades in FY19; and (3) continued traction in CV business. Management expects M&HCV business to register EBIDT breakeven in FY19.

Outlook

We maintain ‘BUY/SO’ with  SoTP-based TP of INR919 (14x FY20E core EPS, INR94 cash per share and INR391 for listed subsidiaries At CMP, the stock trades at FY19/20E PER of 13x/11.6x (excluding subsidiaries). For all recommendations report, click here

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