Company Update - Mahindra & Mahindra - ICICI Direct

- M&M has announced the formation of a new subsidiary for undertaking business activity in the domain of electric passenger vehicle segment. It also announced fresh investment by it and British International Investments (BII) to the turn of Rs. 1925 crore each (spread over two tranches)

- The implied valuation of EV company is pegged at ~Rs. 40,400-70,070 crore depending upon the stake held by the investor. BII will hold 2.75-4.76% stake in the new entity post its investment with M&M retaining the rest.

- The total capital requirement for the EVCo is envisaged to be ~ Rs. 8,000 crore (US$1 billion) in FY24-27 for the planned product portfolio

Key triggers for future price performance

- We expect 20.4% FY22-24E revenue CAGR backed by 15.5% volume CAGR; margins seen at 13% in FY24E along with RoE of 14.6%

- Proactive measures towards electrification theme while retaining strong capital efficiency focus on base businesses as well as investments

- Strong order book in PV business amid innovative and tech enabled new product launches & capex spends to scale up execution capabilities

For details, click on the link below: Link to the report

Shares of Mahindra & Mahindra Limited was last trading in BSE at Rs. 1132.65 as compared to the previous close of Rs. 1133.35. The total number of shares traded during the day was 398474 in over 13640 trades.

The stock hit an intraday high of Rs. 1191.90 and intraday low of 1127.00. The net turnover during the day was Rs. 458535884.00.

Source : Equity Bulls

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MahindraandMahindra INE101A01026 CompanyUpdate ICICIDirect