M&M numbers broadly in line with estimates: Silky Jain, Nirmal Bang Securities

In a chat with ET Now, Silky Jain, Research Analyst-Equity Research, Nirmal Bang Securities, speaks on M&M earnings. Excerpts:


ET Now: Your first take on M&M earnings?

Silky Jain: The numbers look broadly in line. However, the PAT is significantly higher because of the other income which is coming from the dividend from subsidiaries, which is not expected in this quarter.

ET Now: Your analysis on M&M’s numbers given the other income component which has clearly aided the profitability?

Silky Jain: Yes, the numbers are broadly in line. However, other income has led to a boost to the profitability. Expectations were being built up for very good results. So it is a slight disappointment at this level.

ET Now: So do you see especially the target prices on the stock being changed? Would you also re-look at estimates?

Silky Jain: Estimates would be revisited, but already we are factoring in a slowdown in the utility vehicle space because in the July month we are seeing that the UVs were not great and M&M is continuously using market share in the UV market as well. So that is a slight negative on the stock. However, tractor sales have been very good and if we see, the Q2 would not be a seasonally strong quarter for the tractor sales. So that has already been built up and of late, we have seen a sharp correction in the stock.