Top Stocks Today : IIFL Securities has Buy call on Mahindra & Mahindra - February 04

IIFL Securities has recommended buying Mahindra & Mahindra at the current market price of Rs 3254.65, with a target price of Rs 3330. This suggests a potential upside of 2.3%. The brokerage firm is bullish on the auto major due to its strong growth prospects in the SUV and pickup segments, as well as its increasing market share in the commercial vehicle space. Additionally, IIFL Securities expects Mahindra & Mahindra to benefit from the government's focus on infrastructure development.

About Mahindra & Mahindra:

Mahindra & Mahindra (M&M) is a multinational automotive manufacturing corporation headquartered in Mumbai, India. It is the largest producer of tractors and utility vehicles in the world, and the largest manufacturer of agricultural equipment in India. M&M also produces a wide range of vehicles, including cars, trucks, vans, buses, and two-wheelers. The company has a global presence, with operations in over 100 countries. Mahindra & Mahindra is a part of the Mahindra Group, one of the largest industrial conglomerates in India.

52 Week Price Trend:

Mahindra & Mahindra's (M&M) current market price (CMP) of Rs 3254.65 is hovering near its 52-week high of Rs 3237.6. This indicates a strong bullish trend, with the stock trading close to its peak value. However, investors should note that the 52-week low of M&M stands at Rs 1623.2, highlighting the potential volatility of the stock. While the current momentum suggests a positive outlook, it is important to assess the market conditions, company fundamentals, and future prospects before making any investment decisions.

Stratzy's MOST Analysis:

Stratzy's MOST framework assigns M&M a BBB rating, indicating moderate fundamental risks. This rating is based on an assessment of M&M's management, outlook, safety, and trend. While M&M may have some weaknesses in these areas, overall the company's fundamentals are considered solid. This suggests that M&M is a relatively safe investment, although there may be some potential for downside risk.

Company's Fundamentals:

Mahindra & Mahindra (NSE: M&M) currently trades at a Stock PE (Price-to-Earnings) ratio of 32.22, indicating that investors are willing to pay 32.22 times the company's annual earnings for one share. The PB Ratio (Price-to-Book) of 5.43 suggests that the stock is trading at 5.43 times its book value, a measure of the company's assets minus liabilities. M&M offers a Dividend Yield of 0.69%, implying that investors receive 0.69% annual return for each share they own. These metrics provide insights into M&M's valuation, profitability, and dividend payout policy.

Fundamental and Technical information provided in this blog were last updated on 04 Feb, 2025

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