1. Mahindra & Mahindra Ltd stock performance
The large-cap stock is currently trading at Rs 1,264 per share, down 2.21 percent intraday. The stock’s 52-week high was quoted at Rs 1,366 per share and its 52-week low was quoted at Rs 671 per share.
2. Mahindra & Mahindra Ltd is back
The stock has paid off handsomely for investors. The stock has returned 79% over the past 5 years and has returned 136% over the past 3 years. The stock has risen 48% in the past 1 year and 20% in the past 6 months. It’s down 4% over the past 3 months.
3. Stable performance; ready to strengthen
MM’s Q2FY23 net sales at Rs 2,084 crore (6% QoQ, 57% YoY), with mixed net realized value (NRPV) per vehicle rising to Rs 7.63 lakh (6% QoQ, 57% YoY) growth of 9%). Mixed sales (automobiles plus farm equipment) were flat sequentially. Flat raw material cost-to-sales ratio kept gross margin unchanged at 23.5% QoQ, while EBITDA margin remained at 12% (flat QoQ). EBITDA rose just 7% QoQ (50% YoY) to Rs 2,500 crore while reported PAT rose 60% QoQ (39% YoY) to Rs 2,340 crore as dividend inflows normally received in Q2 led to other income Increase.
4. Mahindra & Mahindra Ltd Valuation
According to the analyst, “We estimate MM’s revenue CAGR of 21% in FY22-25. With improved raw material supply, lower costs, higher prices and better utilization, margins are unfavorable Factors may fade. Hence, our EBITDA/PAT CAGR estimates are 26%/24% growth in FY22-25, with EBITDA margin assumptions of 13-14% in FY24/25. We assume a SOTP-based target price of Rs 1,496 with a Buy rating, valuing the core business at 18x FY24 EPS (at par) compared to its long-term average) and allocating a 30% holding company discount (Rs 282/share) to subsidiaries ).New product launches in the premium segment and EVs, as well as a recovery in exports are key revaluation triggers.
5. About Mahindra
Mahindra & Mahindra is the core division of the conglomerate Mahindra Group. As a leading producer of sport utility vehicles, trucks and farm tractors, the company is active in the domestic and international markets.
It was established in 1945 as a steel trading company. It was founded by Jagdish Chandra Mahindra, his brother Kailash Chandra Mahindra, partner Ghulam Mohammed and the city now known as Mumbai. JC Mahindra is the grandfather of the current chairman, Anand Mahindra.
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