Mahindra & Mahindra - March 2013 Results Preview - Motilal Oswal

- 4QFY13 performance is not strictly comparable YoY due to MADPL merger reflecting in 4QFY12.

- Tractor sales estimated to decline by 5.2% YoY, while UVs (incl. pickups are estimated to grow by 14.3% YoY.

- Expect MM to report revenue growth of 10.7% YoY (-3.8% QoQ). Passenger UV revenue is expected to grow 24.4% YoY but tractor sales should remain weak, down 5.2% YoY despite low base.

- EBITDA margin (including MVML) is likely to decline 50bp QoQ (+90bp YoY) on the back of lower tractor volumes and higher discounting pressure/ad spends amidst weak demand.

- Adjusted PAT is estimated at INR8.4b (+4.7% YoY).

- The stock trades at 11.1x/8.9x FY14E/FY15E consolidated EPS respectively. Maintain Buy.

Source : Equity Bulls

Keywords