Monday 10 November 2008

Buy Mahindra & Mahindra, target of Rs 461: Angel

Angel Broking has maintained its buy rating on Mahindra and Mahindra with a target of Rs 461 in its October 29, 2008 research report. "For 2QFY2009, Mahindra and Mahindra (M&M) clocked Net Sales (after Octroi refund) of Rs 3,111 crore. Net Profit post factoring in Exchange loss and Exceptional items to the tune Rs 51.4 crore stood at Rs 175.4 crore, a decline 38.6% yoy. High Interest rates and reduced financing by banks and NBFCs continues to hurt the domestic Auto business. We believe financing is a major area of concern and will likely hurt demand."

"We believe that M&M’s Non-Automotive subsidiaries like Tech Mahindra, Mahindra Financial Services (MMFSL) and Mahindra Gesco may get impacted more and are at high risk. Sharp correction in the stock price makes stock attractive at current levels. Our SOTP Target Price for M&M works out to Rs 425 wherein its core business fetches Rs 276 and value of investments works out to Rs 185. We maintain a Buy on the stock, with a Revised Target Price of Rs 461 (Rs 660)," says Angel Broking's research report.

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Source: Moneycontrol

Posted by Harsh at 12:43

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.