Reduce M&M, target of Rs 689: Reliance Money
Reliance Money has recommended a reduce rating on Mahindra & Mahindra, with price target of Rs 689, in its report dated June 16, 2009.
“M&M plans to launch 2 new products in auto segment. Newly launched Xylo has already received good response and new SUV launch is also as per schedule. We upgrade our outlook on the company’s UV segment and believe it would achieve good volume in FY10E and FY11E mainly due to improved market conditions. It’s farm equipment segment is also like to report decent performance with the support of new Swaraj division. The company has continued to report negative working capital even in difficult times during FY09. We estimate the standalone value of M&M as Rs 435 per share and its subsidiaries and other investments as Rs 254 per share which provides consolidated value of Rs 689 per share. At current market price of Rs 756 the stock trades at 20x and 17x on standalone earnings for FY10E and FY11E respectively. We recommend a Reduce,” says Reliance Money’s research report.
source: Moneycontrol
Tags: brokerage calls, hot stocks, NSE Tips, reduce nse stock target, reliance money, sell mahindra and mahindra, sell rating, share market india
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