Neutral on Mahindra & Mahindra, target Rs 1472: Motilal Oswal

Motilal Oswal maintains neutral rating on M&M with a 12-month target price of Rs 1472. The May 2016 volumes grew by 14.2 per cent YoY to 63,674 units (v/s est 67,300 units), primarily led by continued recovery in tractors, along with support from LCV's.

"However in spite of new launches, UV sales were below our estimates. Our FY17 estimates indicate a 17.1 per cent growth implying a 17.5 per cent residual growth or 70.2k/month of run rate," said the brokerage note.

Tractor sales maintained its momentum, registering a 19.5 per cent YoY growth (7.6% MoM) to 23,018 units (v/s est 22,500 units) driven by newly launched Mahindra Yuvo.