Auto Stock That Soared 66% In Last 1-Yr Can Offer Another 24% Return, Buy: Motilal Oswal

Motilal Oswal has recommended investors to invest in Mahindra & Mahindra Ltd shares as demand environment for the auto business has been stable, according to the management of the company. Mahindra & Mahindra share delivered 66% return to investors in last 1-year and if you buy the stock at current market price of Rs 1226.70 apiece, you can fetch yet another 24% return. Check details below:

Mahindra & Mahindra Ltd Stock Performance & Return: The last trading price of Mahindra & Mahindra Ltd is Rs 1226.70 apiece with intraday fall of 1.67% on BSE. The stock's 52-week high is Rs 1396.00 apiece and 52-week low is Rs 725.45 apiece, respectively. Its market capitalisation is Rs 1,52,543.68 crore. The stock gave investors return of 66% in last 1-year, 164% in last 3-years, and 68% in last 5-years. The large cap auto stock soared 42% in last 2-years and fell 5% in last 6-months.

Mahindra & Mahindra Valuation: According to Motilal Oswal, "We expect MM's revenue/ EBITDA/PAT to post 15%/20%/20% CAGR over FY23-25. This coupled with a healthy improvement in RoCE (+200bp over FY23- 25E to 18.2%) and cheap valuations (at 14.3x/12.6x FY24E/FY25E) preserves attractiveness of the stock. Hence, we maintain our BUY rating with a TP of INR1,525 (premised on Mar'25E SoTP or implied core P/E at TP, which stands at 15.7x FY25E EPS)."

Mahindra & Mahindra About: It is a holding company and engaged in the manufacturing of automotive vehicles. Mahindra & Mahindra operates through various segments namely Automotive, Farm Equipment, among others. Automotive segment of the company includes sale of automobiles, spare parts, and related services. The Farm Equipment segment includes sale of tractor and spare parts.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.