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 have categorised Mahindra and Mahindra Ltd.'s core businesses into three buckets: tractor, pickup utility vehicle, and passenger UV. All of these businesses witnessed a sharp growth in their underlying industries, resulting in record-high volumes in FY23.
While the industry dynamics remained favorable for M&M, its focus on-
new model launches,
healthy margin expansion in the core business, and
prudent capital allocation resulted in an earnings compound annual growth rate of ~11% over FY19-23.
This coupled with expected launches in the EV category led a substantial re-rating. As a result, M&M has outperformed the Nifty index significantly over the last two years with ~44% CAGR vis-a-vis 12% for the Nifty.
While we believe that growth should moderate in some of its verticals, M&M is still better placed to outperform the underlying segments, which would result in ~12.5%/15%/17% revenue/Ebitda/profit after tax CAGR over FY23-26E.
The implied core price/earning for M&M stands at 18.1 times/16.4 times FY24E/FY25E earnings per share, which remains attractive versus peers.
Hence, we reiterate our 'Buy' rating with a target price of Rs 2,005 based on Dec-25E SOTP and Rs 214/share for its e-passenger vehicle subsidiary.
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.
Comprehensive Budget 2026 coverage, LIVE TV analysis, Stock Market and Industry reactions, Income Tax changes and Latest News on NDTV Profit.
