Buy Mahindra & Mahindra, target price Rs 1386: ICICI Securities

ICICI Securities has buy call on Mahindra & Mahindra with a target price of Rs 1386. The current market price of Mahindra & Mahindra is Rs 1143.

Mahindra & Mahindra Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 140269.41 Crore) operating in Auto sector.

Mahindra & Mahindra Ltd. key Products/Revenue Segments include Automobile-Light, Medium & Heavy Commercial, Jeep, Passenger Car, Sale of services, Scrap, Other Operating Revenue for the year ending 31-Mar-2022.



Financials
For the quarter ended 31-12-2022, the company reported a Consolidated Total Income of Rs 30920.11 Crore, up 2.80 % from last quarter Total Income of Rs 30076.98 Crore and up 30.00 % from last year same quarter Total Income of Rs 23785.49 Crore. Company reported net profit after tax of Rs 2602.96 Crore in latest quarter.

Investment Rationale
The brokerage upgrades M&M to BUY from Add, as post the recent correction (~10% in six months) and factoring in the cut in tractor volume, M&M is currently trading at ~12.5x FY25E core EPS vs long term mean multiple of ~15x.

Promoter/FII Holdings
Promoters held 19.39 per cent stake in the company as of 31-Dec-2022, while FIIs owned 39.16 per cent, DIIs 27.58 per cent.