M&M reported a better-than-expected working efficiency in This fall FY25, led by a robust margin beat within the farm tools section (at 19.4% versus 17.3% estimated). The QoQ margin enchancment was notably commendable because it got here in a seasonally weak quarter. Auto section margins, adjusted for contract manufacturing at MEAL, got here in at 10% (+30 bp QoQ).
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Motilal Oswal Report
We consider Mahindra and Mahindra Ltd. is well-placed to outperform throughout its core companies, led by a wholesome restoration in rural areas and new product launches throughout each the utility autos and tractors segments. Given the sustained demand momentum in UVs and tractors, we now have raised our earnings estimates by 4%/6% for FY26/FY27E.
We estimate M&M to put up a CAGR of ~13%/13%/18% in income/Ebitda/PAT over FY25-27E.
Whereas M&M has outperformed its personal targets of earnings development and RoE of 18% in every of FY24 and FY25, it stays dedicated to delivering 15-20% EPS development and 18% ROE, guaranteeing sustained profitability and shareholder worth.
Reiterate Purchase with a goal worth of Rs 3,482 (primarily based on FY27E SOTP).
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