Mahindra & Mahindra Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 110911.42 Crore) operating in Auto sector.
Mahindra & Mahindra Ltd. key Products/Revenue Segments include Automobile-Light, Medium & Heavy Commercial, Jeep, Passenger Car, Sale of services, Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 21735.96 Crore, up 12.23 % from last quarter Total Income of Rs 19368.16 Crore and down -8.87 % from last year same quarter Total Income of Rs 23851.74 Crore. Company reported net profit after tax of Rs 2031.54 Crore in latest quarter.
Investment Rationale
Turnaround in subsidiaries from focused capital allocation, continued success in core-SUV segment (via new launches- XUV700, Thar, upcoming Scorpio) and enhanced focus towards electrification of commercial and personal mobility are likely to improve M&M’s competitive position. The brokerage expects H2FY22 to witness pickup across PVs/tractors as supply-chain woes moderate while order backlog remains healthy. It introduces FY24E and revise EPS estimates by -2.1%/3.3% for FY22E/23E, respectively. It rollover to Sep’23E and maintains target multiple to 8.5x FY23E EBITDA (Rs721/share) and value subsidiaries at Rs357/share to arrive at SoTP-based target price of Rs1,141/share (earlier: Rs1,049).
Promoter/FII Holdings
Promoters held 19.46 per cent stake in the company as of 30-Sep-2021, while FIIs owned 44.07 per cent, DIIs 21.93 per cent.
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