Buy Mahindra & Mahindra, target price Rs 900: Motilal Oswal

Motilal Oswal has buy call on Mahindra & Mahindra with a target price of Rs 900. The current market price of Mahindra & Mahindra is Rs 791.45. 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 96807.40 Crore) operating in Auto sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 19368.16 Crore, down -11.04 % from last quarter Total Income of Rs 21770.81 Crore and up 17.24 % from last year same quarter Total Income of Rs 16520.12 Crore. Company reported net profit after tax of Rs -748.67 Crore in latest quarter.


Investment Rationale
Implied Core P/E for MM stands at ~10.2x FY23E S/A EPS and 1.3x Core P/BV. Our Mar’23E-based SOTP Target Price is ~INR900/share (implied Core P/E at ~12.9x at TP).

Promoter/FII Holdings
Promoters held 18.9 per cent stake in the company as of June 30, 2021, while FIIs held 45.8 per cent, DIIs 25.4 per cent and public and others 9.9 per cent.