Mahindra & Mahindra Ltd - Ventura

We expect Mahindra & Mahindra, the market leader in the SUV and tractor segments to sustain the growth momentum in its core UV portfolio aided by the strong performance of the existing products and continuous ramp up of its offerings. We do not expect the cyclical downturn in the tractor segment to be a dent on the company's profitability and expect it to be offset by the strong performance in the UV segment. Further, benefits from the SSangyong acquisition are expected to be witnessed in the medium term. Also, the other subsidiaries of M&M are expected to contribute fairly to the group given the opportunities in their respective fields. At CMP of Rs.863, M&M is trading at 17.3x and 15.0x its estimated earnings for FY13 and FY14 respectively and we recommend a BUY with a target price of Rs.1,000 over a period of 15 months.

Source : Equity Bulls

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