NDTV Profit'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 NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
We estimate Mahindra and Mahindra Ltd. to post a compound annual growth rate of ~18%/20%/20% in revenue/Ebitda/PAT over FY24-26.
While M&M has outperformed its own set targets on earnings growth and return on equity of 18% in FY24 itself, it maintains long term guidance of 18% RoE, as it has now guided for capex guidance (including investments) of Rs 370 billion for FY25-27E from Rs 175.6 billion invested during FY22-24. The implied core P/E for M&M stands at 27.8x/22.5x FY25E/FY26E EPS.
We maintain our Buy rating with a revised target price of Rs 3,300 (based on June-26E SOTP).
M&M's annual report FY24 outlines its strategic focus on its journey to "Deliver Scale" across its businesses, categorized into three buckets.
First, it aims to capitalize on market leadership in SUVs and tractors by expanding its market presence through customer-obsessed brands, pioneering technology leadership, and global reach.
Second, the company is focusing on unlocking the full potential of Mahindra Finance and Tech Mahindra, recognizing their significant potential for value creation. Both businesses have unique strengths that position them to become leaders in their respective segments.
Lastly, its ‘Growth Gems' are expected to achieve a fivefold increase in scale and value over the next five-seven years. It remains committed to delivering 15-20% EPS growth and 18% return on equity, ensuring sustained profitability and shareholder value.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
