M&M share price today: Here is why brokerages are still bullish about the stock

Snapping its gaining streak, Mahindra and Mahindra on Monday fell by around seven per cent to Rs 790 per share (day’s low) on the BSE intraday during the early trade on the back of weak fourth-quarter results that were released on Friday by the company. 

The tractor and farm utility major reported a consolidated profit of Rs 163 crore for the March-ended quarter of the financial year 2020-21 as reported a loss of Rs 3,255 crore in the year-ago quarter. The profit was mainly impacted by a one-time loss of Rs 840 crore.  

At 11:45 am, the stock recovered around two per cent from its lows and trading over four and a half per cent at Rs 806 per share. 

The management said the tractor industry is expected to grow in low single-digits during the financial year 2021-22 (FY22), with the company focused on gaining market share. 

The company had reported a consolidated net loss from continuing operations of ₹588 crores in the same period of the last fiscal, M&M said in a regulatory filing. 

Mentioning that the quarter four results are in-line, Goldman Sachs has a Buy rating on M&M with valuations attractive at current levels. It sets a target of Rs 993 per cent, as the company is fitter and focussed for long term and it is a preferred pick in the personal and commercial vehicles space. 

Similarly, UBS maintains a Buy call on M&M improving return profile, strong outlook. The brokerage firm sets a target of Rs 1030 per share as the company’s capex will limit meaningful FCF generation.  

Since May 4, the stock of M&M has outperformed the market by surging 14 per cent, as compared to a 6.6 per cent rise in the S&P BSE Sensex till Friday. The trading volumes on the counter nearly doubled with a combined 7.4 million equity shares having changed hands on the NSE and BSE so far.