13:27 (IST) 17 May 2024Prabhudas Lilladher on M&M post Q4“We continue to remain bullish on M&M as it should benefit from (1) increasing its presence in high growth category, (2) encouraging response from consumers towards new responses to continue to drive order book, (3) Capacity expansion to reduce the waiting period and timely execution of new products, (4) Diversification of powertrains and (5) Recovery in tractor volume along with strong sustainable margin.
The management noted that commodity prices should remain benign in the coming period while better operating leverage and cost-cutting initiatives shall keep the margin profile steady.
Factoring this, we estimate its Automotive volume/Tractor volume to grow at a CAGR of 10.7%/7% respectively over FY24-FY26E, hence, we forecast its revenue/EBITDA/APAT to grow at a CAGR of 14.3%/19.4%/14.6% over the same period,” said Prabhudas Lilladher on Mahindra & Mahindra after the auto major released its Q4 results.
“We retain our “Buy” with a target price of Rs 2,716 (Rs 2,306) valuing it at 22.5x on FY26E core EPS and Rs 221 for EV business and Rs 362 for listed subsidiaries.”
13:27 (IST) 17 May 2024
Prabhudas Lilladher on M&M post Q4
“We continue to remain bullish on M&M as it should benefit from (1) increasing its presence in high growth category, (2) encouraging response from consumers towards new responses to continue to drive order book, (3) Capacity expansion to reduce the waiting period and timely execution of new products, (4) Diversification of powertrains and (5) Recovery in tractor volume along with strong sustainable margin. The management noted that commodity prices should remain benign in the coming period while better operating leverage and cost-cutting initiatives shall keep the margin profile steady. Factoring this, we estimate its Automotive volume/Tractor volume to grow at a CAGR of 10.7%/7% respectively over FY24-FY26E, hence, we forecast its revenue/EBITDA/APAT to grow at a CAGR of 14.3%/19.4%/14.6% over the same period,” said Prabhudas Lilladher on Mahindra & Mahindra after the auto major released its Q4 results.
“We retain our “Buy” with a target price of Rs 2,716 (Rs 2,306) valuing it at 22.5x on FY26E core EPS and Rs 221 for EV business and Rs 362 for listed subsidiaries.”
