homemarket NewsMotilal Oswal expects 21% upside to Mahindra and Mahindra stock on strong growth prospects
Motilal Oswal expects 21% upside to Mahindra and Mahindra stock on strong growth prospects
Mahindra & Mahindra Share Price: The broking firm Motilal Oswal has reiterated its "buy" ratings on the stock of M&M with a target price of ₹2,005 apiece, indicating a 21% upside to Tuesday's closing price of ₹1,656.3 apiece on BSE.
Brokerage house Motilal Oswal Financial Services (MOSL) is bullish on Mahindra and Mahindra (M&M) as the automaker is poised to report strong performance across its verticals.
The broking firm has reiterated its "buy" ratings on the stock of M&M with a target price of ₹2,005 apiece, indicating a 21% upside to Tuesday's closing price of ₹1,656.3 apiece on BSE.
In its research, the brokerage firm said that M&M poised for strong performance across its verticals, with an anticipated 12.5% revenue growth from the financial year (FY) 2023 to FY26.
It added that the Passenger SUV segment is expected to exhibit an impressive 14% volume compound annual growth rate(CAGR) during this period. Additionally, FY25 is projected to be a favorable year for the tractor industry.
Despite these positive prospects, the core P/E ratio of 17X FY25 EPS (earning per share) suggests that the company's valuation remains attractive when compared to its peers. This metric indicates a relatively reasonable price in relation to its earnings for the fiscal year 2025.
M&M posted a 16% surge in standalone revenue at ₹24,310 crore for the September quarter.
Growth in the topline came from the automotive business, which rose by 22% year-on-year to ₹18,405 crore. However, the company's farm equipment business remained flat at ₹5,919 crore, compared to ₹5,944 crore during the same period last year.
Mahindra and Mahindra shares were trading 0.21% lower at ₹1,652.9 apiece at 9:58am on Wednesday, January 3.
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