A company is fundamentally strong in nature when it possesses strong financials, new plans for gaining a bigger share of the market, and the potential to expand with innovative offerings in contrast to its industry competitors.
Listed below is one such stock investor must keep on their radar.
Incorporated in 1945, Mahindra & Mahindra Limited (M&M) is primarily engaged in automobile manufacturing, steel trading, infrastructure development, agribusiness, aerospace, logistics, and hospitality segments. The company was ranked 17th in the Fortune India 500 in 2018.
Shares of Mahindra and Mahindra Ltd. were trading at ₹ 1328 gaining 3.60 % on Monday’s trading session from the previous close price of ₹ 1277. The company has a market cap of ₹ 1,65,184 crore.
As per consolidated financials, company operating revenues increased from ₹ 30,620 crore in Q3 to ₹32,365 crore in Q4. Similarly, having a YoY comparison of the metrics, the revenues significantly increased by 34 percent from ₹ 90,170 crores during FY 21-22 to ₹ 1,21,268 crores in FY 22-23.
The net profits of the company, during the previous quarter, increased from ₹2,602 crore in Q3 to ₹2,762 crore in Q4. For YOY comparison, PAT numbers have significantly increased by 83 percent, from ₹ 5,397 crores during FY 21-22 to ₹ 9,869 crores in FY 22-23.
With a positive outlook for the company, here are the targets given by analysts:
Motilal Oswal
The brokerage has given a buy call on Mahindra and Mahindra Ltd. with a target price of ₹ 1500, this is an upside of 13%.
Sharekhan brokerage
The brokerage has given a buy call on Mahindra and Mahindra Ltd. with a target price of ₹ 1550, this is an upside of 17%.
CLSA Research
The CLSA has given a buy call on Mahindra and Mahindra Ltd. with a target price of ₹ 1700, this is an upside of 28%.
The rationale behind giving such a recommendation is
- The analyst believes the company can deliver strong performance from the core business and have the capability to grow above 20 percent market share in SUV segments.
- Sharekhan believes that the company’s auto segment will drive its operating performance in the coming years due to increasing demand.
- Analysts expect the company’s auto business to be a key driver for the next couple of years, with a CAGR of 16 percent for FY 23-25.
According to the analyst presentation, The company intends to increase its non-core business valuation by $17 billion over the next five to seven years by selecting growth gem businesses like real estate, logistics, and renewable energy.
By releasing an integrated technology stack (LogiOne) and Mahindra Accelo for vehicle recycling, with the objective of achieving a market share of about 25% by FY28.
According to the latest data pertaining to the shareholding pattern, promoters of the company hold a 19.37 percent stake, and foreign institutional investors (FIIs) hold a 39.24 percent stake in the company for FY 22-23.
Written by Omkar C
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