Buy Mahindra & Mahindra Ltd., target Rs 1713.0 : Motilal Oswal Securities

Motilal Oswal Securities has Buy call on Mahindra & Mahindra Ltd. with a target price of Rs 1713.0. The current market price of Mahindra & Mahindra Ltd. is 1405.0. Time period given by analyst is year, when Mahindra & Mahindra Ltd. price can reach defined target. Worst is over for M&M not only in its core businesses of tractors and UVs, but also in key subsidiaries. This would result in ∼36 % consolidated EPS CAGR over FY16-18E (v/s ∼14 % CAGR decline over FY14-16). With strong earnings cycle ahead in core business and potential reduction in losses of non-core business, valuations at ∼16.9x FY18E S/A EPS, ∼14.5x FY18E Consol EPS and ∼6.3 % FY18 FCF yield are very attractive.