Analyst's Pick: Mahindra & Mahindra

CMP: Rs 316.90

Target price: Rs 375

Antique Stock Broking has initiated coverage on Mahindra & Mahindra with a ���buy��� rating. According to the broking house, M&M���s stake in group companies significantly augments its consolidated revenues and profits. The value accruing from these investments provides a huge cushion to M&M���s market price, the report said. ���In line with the industry, we expect FY10 to be comparatively better for M&M���s automotive segment, given the reduction in fuel prices, fall in interest rates, decline in raw material costs and cut in excise duties. The positive response to its recently-launched Xylo will enable further market share gains for the company,��� the Antique Stock Broking report said. The increase in allocation towards farm credit will indirectly help M&M���s tractor segment. Its significant presence in rural markets, which are relatively insulated from the current slowdown, provides it a competitive advantage, the report added.