Buy Mahindra & Mahindra, target price Rs 1065: HDFC Securities

HDFC Securities has buy call on Mahindra & Mahindra with a target price of Rs 1065. The current market price of Mahindra & Mahindra is Rs 933. Time period given by analyst is one year when Mahindra & Mahindra Ltd. price can reach defined target.

Mahindra & Mahindra Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 115330.97 Crore) operating in Auto sector.

Mahindra & Mahindra Ltd. key Products/Revenue Segments include Automobile-Light, Medium & Heavy Commercial, Jeep, Passenger Car, Sale of services, Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 23785.49 Crore, up 9.43 % from last quarter Total Income of Rs 21735.96 Crore and up 8.77 % from last year same quarter Total Income of Rs 21867.78 Crore. Company reported net profit after tax of Rs 2066.60 Crore in latest quarter.

Investment Rationale
The TP of INR1,065/sh is based on SOTP valuation of (a) core business valued at 16x FY24e EPS; (b) listed subsidiaries valued at CMP and unlisted at book. Risks: Higher-than-expected input cost pressure and uncertainty around chip availability.

Promoter/FII Holdings
Promoters held 19.47 per cent stake in the company as of 31-Mar-2022, while FIIs owned 42.59 per cent, DIIs 23.49 per cent.