Buy Mahindra & Mahindra, target Rs 1500: Centrum Broking

Centrum Broking Ltd maintains a buy rating on M&M with a 12-month target price of Rs 1,500. M&M is one of the best-placed companies to leverage the expected recovery in rural demand, given its dominance in domestic tractor market.

The automaker has an extensive dealer network in the automotive segment and support from the group's financing company (MMFS). During FY16, M&M had 14 new launches in the automotive segment and 2 in the farm equipment segment.

"With its dominant position in domestic tractor segment and extended UV range besides anticipation of normalised monsoons, we expect volume growth to remain strong going forward," said the report.