Buy Mahindra & Mahindra, target price Rs 1081: Centrum Broking

Centrum Broking has buy call on Mahindra & Mahindra with a target price of Rs 1081. The current market price of Mahindra & Mahindra is Rs 849.3. Time period given by analyst is one year when Mahindra & Mahindra Ltd. price can reach defined target.

Mahindra & Mahindra Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 105571.91 Crore) operating in Auto sector.

Mahindra & Mahindra Ltd. key Products/Revenue Segments include Automobile-Light, Medium & Heavy Commercial, Jeep, Passenger Car, Sale of services, Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 23785.49 Crore, up 9.43 % from last quarter Total Income of Rs 21735.96 Crore and up 8.77 % from last year same quarter Total Income of Rs 21867.78 Crore. Company reported net profit after tax of Rs 2066.60 Crore in latest quarter.

Investment Rationale
Tractor sales declined by 22% and Auto sales grew by 44% YoY. Mix improved in Auto segment as company is selling higher ASP SUV models. This drives 12% ASP growth in Auto segment. At standalone, the brokerage expects revenue growth of 29% YoY, sequentially flat margin on lower tractor mix and PAT growth of 2% YoY.

Promoter/FII Holdings
Promoters held 19.47 per cent stake in the company as of 31-Dec-2021, while FIIs owned 44.36 per cent, DIIs 22.11 per cent.