Mahindra & Mahindra Q4 Results Review — Driving Uphill; Auto Segment In Top Gear: Dolat Capital

"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..M&M demonstrated a stable performance in 4Q. EBITDA remained flat QoQ with margin at 12.4%.EBIT margin for automotive division expanded 57 bps QoQ to 7.3 % and for FES 13 bps to 16.7%. Outstanding bookings stands at 292K+ (including XUV700 at 78K and Scorpio-N at 117K) and per month, booking rate is 57k vs supply of 33k vehicles. We expect automotive margin in FY24 to see further improvement led by economies of scale. However, we reckon that margins may not see substantial improvement in automotive segment as M&M’s new EVs launches are likely to be aggressively priced to gain volumes. Management guided low single digit growth in tractor segment. Despite muted outlook in tractor segment, we expect Farm segment earnings would be supported by strong operating leverage in Farm machinery segment, the company is targeting 10x revenue growth by FY26. We believe the stock to trade at a premium to historical multiple as the company moves higher to its guided ROE target of 18%. Our SOTP valuation comes at Rs.1568 (We value the core business at Rs.1048/share (17x FY25E core EPS) and subsidiaries at Rs.293/share +Value of EVs arm Rs.227). Maintain BUY..Mahindra & Mahindra Increases Capex Outlay For FY22-24 To Rs 15,900 crore.DISCLAIMERThis 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."

Mahindra & Mahindra Q4 Results Review — Driving Uphill; Auto Segment In Top Gear: Dolat Capital

Expect automotive margin in FY24 to see further improvement led by economies of scale.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Mahindra & Mahindra Q4 Results Review — Driving Uphill; Auto Segment In Top Gear: Dolat Capital

Expect automotive margin in FY24 to see further improvement led by economies of scale.

Choose a plan

Follow Us

DOWNLOAD THE APP