BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Mahindra & Mahindra Ltd.'s Q1 FY24 Ebitdam at 13.2% (+105 basis points QoQ) was ~20 bps higher than consensus as both farm equipment segment and auto margins improved.
Auto margin at 7.5% (+44 bps QoQ) was at FY19 levels despite commodity inflation and BS VI related cost increment. FES segment margin improved to 17.5% (+110 bps QoQ).
Supply situation has improved and M&M is on track to achieve planned capacity expansion of 49,000 units/month by Q4 FY24, and has an order backlog of more than 280,000 units.
Despite delivering a strong return on equity of 24%, M&M maintains its threshold at 18% RoE and would look to balance growth and profitability.
Maintain 'Buy' with a revised SoTP-based target price of Rs 1,686 (earlier: Rs 1,543), implying 19 times FY25E core earnings per share.
Change in target price is driven by ~6% increase in FY25E earnings and rolling discounted cash flow by a quarter.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
