This Mahindra Group Nifty 50 Stock Soon To Go Ex-Dividend Has 'Buy' Calls For Decent Upside

M&M-the Mahindra Group auto counter in the Nifty 50 index is making all the headlines for its positives. For now after hitting an all time high only recently, the brokerages are betting on the stock for good upside. Here below check the target price for the stock as given by various brokerages:

CLSA

The company has raised the target price to Rs. 1486 from the earlier target of Rs. 1356 per share. The foreign entity is of the view that SUV valuation for the company shoots up and there is a strong EV SUV product-line up lined up.

Capital raise for EV is valued at $5.9-9.1 billion and the targeted 20-30% penetration of EV in the SUV segment is highly positive for the company. Company also plans to launch 5 Evs by 2026.

JP Morgan

This foreign entity has also raised price to Rs. 1350 per share with an 'Overweight' rating. The company is of the view that the EV fund raise is positive for both the electrification as well as capital allocation. Also, the EPS for M&M has been raised by 5-8% for the next 2 financial years. Also, the firm is the top bet in the auto space of JP Morgan.

IDBI Capita

In the most bullish set, IDBI has given a target price of Rs. 1643 to the auto major. The view held by the brokerage is that "M&M's core business (Auto and Farm), net of subsidiary valuations of Rs563/share, is quoting at PER of 7.9xFY24 earnings. We raise our price Target to Rs1643 - 52% upside potential over next 18 months".

Further the brokerage maintains that the recent launch Scorpio N, priced at Rs11.99 -19.5 lakh (ex showroom) in five variants across seven colors. Built on new third generation body on frame platform, new Scorpio N is completely newly developed product with no carryover components of the existing Scorpio. It is
powered by a 2.0-litre mStallion turbo petrol engine/ 2.2-litre mHawk diesel engine. Its prominent features include an 8-inch touchscreen, a sunroof, Alexa
Voice Command, 3D immersive Sony sound system and up to six airbags. The Scorpio N has the lowest CO2 emission in the segment. M&M has incurred
overall investment of Rs16bn for development of Scorpio N which includes setting up automated manufacturing line. Scorpio N is likely to open for booking on 30th July 2022 while delivery is expected start during festive period.

On the dividend front, the stock is to go ex-dividend for Rs. 11.5 per share dividend tomorrow, so probably today is the last day to bet on the scrip for best capital appreciation and dividend.