Buy Mahindra & Mahindra, target price Rs 765: Motilal Oswal

Motilal Oswal has given a buy rating to Mahindra & Mahindra with a target price of Rs 765. The share price moved down by 0.18 per cent from its previous close of Rs 593.85. The stock’s last traded price is Rs 592.80.

Mahindra & Mahindra Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 73845.64 Crore) operating in Auto sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 16321.34 Crore, down 19.13 % from last quarter Sales of Rs 20182.28 Crore and down 37.32 % from last year same quarter Sales of Rs 26041.02 Crore. Company reported net profit after tax of Rs -196.68 Crore in latest quarter.

Investment Rationale
The stock trades at core P/E of 11.7x FY22E S/A EPS and 1.2x core P/B.

Promoter/FII Holdings
Promoters held 18.9 per cent stake in the company as of June 30, 2020, while FIIs held 33.4 per cent, DIIs 28.5 per cent and public and others 19.2 per cent.