Mahindra & Mahindra shares hit all-time high post strong Q4 results; should you buy, sell or hold?

M&M share price target, M&M share price today BSE, M&M Q4 results: Mahindra & Mahindra (M&M) shares clocked an all-time high on Friday, May 17 following a raise in target prices by brokerages a day after the automaker released strong March quarter results. The Mahindra & Mahindra stock rose as much as 7.8 per cent to hit an all-time high of Rs 2,557.95 on BSE. At close, the counter settled at Rs 2,514.45, up 5.97 per cent on BSE.

M&M share price target: Buy, sell or hold? 

Jefferies has upgraded Mahindra & Mahindra to buy from hold. The brokerage has raised the target to Rs 2,910 apiece from Rs 1,615 apiece. The global brokerage stated the following key points: 

• Believes tractor industry is in a late downturn SUV portfolio continues
• To strengthen plans to launch 13 new SUVs by 2030
• Core FY25 P/E is still 20 per cent below the blended peer average

Morgan Stanley has retained an overweight rating on the automaker with a raise in target by Rs 713 apiece to Rs 2,665 apiece. Morgan Stanley highlighted the following key points in its note:

• Strong Q4, expect company to remain the fastest growing PV OEM
• In FY25 re-rating potential for auto business see improving farm
• Business sentiments at the margin optionality of growth
• Gems value unlock keeps us overweight

On the flip side, CLSA has downgraded the auto stock to sell from an outperform rating with a raised target to Rs 2,312 from Rs 2,115. 

M&M Q4 results

During market hours on Thursday, Mahindra & Mahindra posted a 4 per cent increase in consolidated profit after tax (PAT) to Rs 2,754 crore for the March quarter, driven by strong performance of its automotive and farm sector segments.

Revenue increased to Rs 35,452 crore in the fourth quarter, registering a growth of 9 per cent, as compared to Rs 32,456 crore in the corresponding period a year ago.

For the year full year ended March 31, the company posted a consolidated net profit of Rs 11,269 crore as against Rs 9,025 crore in FY23, an increase of 25 per cent.

Revenue rose 15 per cent to Rs 1,39,078 crore in the last fiscal as compared with Rs 1,21,362 crore in FY23.

Management Commentary

"It has been an excellent year with most of our businesses delivering a high level of performance. Auto continued its high growth trajectory, Farm gained share in a tough market and Mahindra Finance delivered on asset quality," M&M Managing Director & CEO Anish Shah said. TechM was a weak spot, the turnaround has commenced with the new organisation in place, he added.

Mahindra & Mahindra dividend: M&M announces 422 per cent dividend 

The company has approved a dividend of Rs 21.10 per share of the face value of Rs 5 each. Read more on Mahindra & Mahindra dividend

(With PTI inputs)

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