Company Update: Mahindra and Mahindra (M&M) - BUY - TP Rs.1565 - Kotak

Tractor division will continue to drive M&M's growth in FY18, while auto performance will likely remain subdued in the near term. M&M's Utility Vehicle (UV) sales, which has been weak in recent years, will likely improve over the medium term. M&M will launch two new products in the UV segments and that coupled with refreshes of few existing products will drive growth in the UV segment. Consecutive good monsoon will be significantly positive for tractor demand in FY18 and can have a positive spillover on demand in FY19. Further, government focus on increasing farmer's income and farm loan waiver too will have positive impact on the tractor demand. We introduce FY19 financials and base our target price on FY19 earnings. We upgrade the stock to BUY (ACCUMULATE earlier) with revised price target price of Rs1,565 (earlier Rs1,410).

Shares of MAHINDRA & MAHINDRA LTD. was last trading in BSE at Rs.1386.3 as compared to the previous close of Rs. 1388.55. The total number of shares traded during the day was 135624 in over 3488 trades.

The stock hit an intraday high of Rs. 1404.5 and intraday low of 1384.35. The net turnover during the day was Rs. 188948324.

Source : Equity Bulls

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