Buy Mahindra & Mahindra, target Rs 900: Sharekhan
Sharekhan research has maintained buy rating on Mahindra & Mahindra with target price of Rs 900, in its December 13, 2007 report. “All new product launches would commence from FY2009 onwards, triggering good growth in the company. In its focus areas, the company is outperforming the industry. Segments other than automotive and farm equipment contribute approx 43% to the consolidated revenues and approx 53% to the operating profits of M&M. Thus, we believe M&M is a well-diversified play in the auto sector. At the current market price of Rs794, the stock quotes at 11.4x its FY2009E consolidated earnings. We continue to value M&M on a sum-of-the-parts basis and maintain Buy with a price target to Rs900,” according to Sharekhan report.
