M&M share price gains 3% on acquiring stake in 3 UK companies; Nomura keeps buy

Mahindra and Mahindra (M&M) share price added 3 percent in the early trade on November 12 after the company announced acquiring of 3 companies in the UK.

Company's wholly-owned subsidiary BSA Company Limited, UK has acquired 100% stake in the three companies namely The Birmingham Small Arms Company Limited, BSA Corporation Limited and B.S.A. Motor Cycles Limited from BSA Regal Group of UK.

Nomura has maintained buy call with a target at Rs 923 per share. It raise EPS further by 19%/11%/10% for FY21/22/23.

The strong margin performance at 17.8% driving strong EBIDTA beat versus estimates. The tractors may grow 12% in FY21 on strong rural outlook backed by government spend and good monsoon, reported CNBC-TV18.

On November 10, M&M reported an 88 percent year-on-year (YoY) fall in Q2FY21 net profit for M&M and MVML at Rs 162 crore against Rs 1355 crore reported in Q2FY20.

Revenue (M&M + MVML) for the said quarter came at Rs 11,590 crore, up 6 percent YoY against Rs 10,935 crore in Q2FY20.

The share touched its 52-week high Rs 666.35 and 52-week low Rs 245.80 on 21 September, 2020 and 25 March, 2020, respectively.

Currently, it is trading 3.11 percent below its 52-week high and 162.65 percent above its 52-week low.