Buy Mahindra & Mahindra, target price Rs 2800: IIFL Securities

IIFL Securities has issued a buy recommendation for Mahindra & Mahindra, with a target price of Rs 2,800. This implies an upside potential of approximately 2.5% from the current market price of Rs 2,732.75. The brokerage firm believes that Mahindra & Mahindra is well-positioned to benefit from the recovery in the automotive sector, driven by factors such as rising demand for SUVs and government initiatives to promote electric vehicles.

About Mahindra & Mahindra:

Mahindra & Mahindra (M&M) is a leading automotive and farm equipment manufacturer in India, with a global presence. The company offers a wide range of vehicles, including passenger cars, commercial vehicles, two-wheelers, and tractors. M&M also has a significant presence in the agriculture sector, with a focus on farm mechanization and crop protection. The company's operations are spread across various geographies, including India, North America, Europe, and South America. M&M is committed to sustainability and innovation, and has invested heavily in electric vehicles and renewable energy solutions.

52 Week Price Trend:

Mahindra & Mahindra (M&M) witnessed a substantial 143% surge in its CMP of Rs 2732.75 compared to its 52-week low of Rs 1123.4. This rise reflects the company's resilience and recovery post-pandemic. The auto giant's 52-week high of Rs 1951 indicates significant potential for further growth. Mahindra's strong presence in the automotive, agricultural, construction, and finance sectors positions it well to capitalize on India's economic recovery and infrastructure development initiatives.

Stratzy's MOST Analysis:

M&M's BBB rating from Stratzy's MOST framework indicates medium fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. M&M has received a solid score in terms of its management, outlook, and trend, indicating that the company is well-managed and has a positive outlook for the future. However, there are some safety concerns that need to be addressed, which may impact the company's overall financial performance and risk profile.

Company's Fundamentals:

Mahindra & Mahindra (NSE: M&M), a prominent automotive company listed on the National Stock Exchange (NSE), has several key financial metrics that investors can analyze. The Stock PE (Price-to-Earnings) ratio of 21.56 indicates the market's valuation of the company relative to its earnings, with a higher PE ratio suggesting a higher valuation. The PB Ratio (Price-to-Book) of 3.97 compares the company's market value to its book value (assets minus liabilities), giving insights into its asset efficiency. Finally, the Dividend Yield of 0.84% represents the annual dividend paid per share as a percentage of the share price, providing investors with income generation potential. Understanding these metrics helps investors assess the company's financial health, valuation, and potential for return.

Fundamental and Technical information provided in this blog were last updated on 05 Jun, 2024

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