Citigroup neutral on M&M, target price Rs 590
Volumes for both UV and tractor segments were better than muted expectations even if one accounts for a relatively weaker base.
By ETMarkets.com | Updated:
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Citigroup has maintained neutral rating on M&M in the long term with a target price of Rs 590. Shares of M&M ended up 0.6% at Rs 539.90 on Thursday while BSE Sensex closed 320.62 points up at 41,626.64.
Company Financials
For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 23935.93 crore, down -8.08% from last quarter sales of Rs 26041.02 crore and down -5.88% from last year same quarter sales of Rs 25431.02 crore. The company has reported net profit after tax of Rs 22.33 crore in the latest quarter.
The company’s top management includes Dr.Pawan Goenka, Dr.Vishakha N Desai, Mr.Anand G Mahindra, Mr.Haigreve Khaitan, Mr.Keshub Mahindra, Mr.M M Murugappan, Mr.Nadir B Godrej, Mr.T N Manoharan, Mr.Vijay Kumar Sharma, Mr.Vikram Singh Mehta, Ms.Shikha Sharma. Company has B S R & Co. LLP as its auditors. As on 30-06-2019, the company has a total of 1,243,192,544 shares outstanding.
Investment Rationale
Volumes for both UV and tractor segments were better than muted expectations even if one accounts for a relatively weaker base, said Citigroup. M&M’s tractor segment should gain from an expected recovery in agricultural sector in FY21. We think in BS VI regime, M&M could find it difficult to regain share, said Citi.
Company Financials
For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 23935.93 crore, down -8.08% from last quarter sales of Rs 26041.02 crore and down -5.88% from last year same quarter sales of Rs 25431.02 crore. The company has reported net profit after tax of Rs 22.33 crore in the latest quarter.
The company’s top management includes Dr.Pawan Goenka, Dr.Vishakha N Desai, Mr.Anand G Mahindra, Mr.Haigreve Khaitan, Mr.Keshub Mahindra, Mr.M M Murugappan, Mr.Nadir B Godrej, Mr.T N Manoharan, Mr.Vijay Kumar Sharma, Mr.Vikram Singh Mehta, Ms.Shikha Sharma. Company has B S R & Co. LLP as its auditors. As on 30-06-2019, the company has a total of 1,243,192,544 shares outstanding.
Investment Rationale
Volumes for both UV and tractor segments were better than muted expectations even if one accounts for a relatively weaker base, said Citigroup. M&M’s tractor segment should gain from an expected recovery in agricultural sector in FY21. We think in BS VI regime, M&M could find it difficult to regain share, said Citi.
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