M&M Share Price: Share price of Mahindra & Mahindra (M&M) rose nearly 4 per cent in a weak market, a day after (on Tuesday) the carmaker launched the all-new Scorpio-N, the “Bid Daddy of SUVs”. For now, M&M has announced prices of only the manual transmission variants starting from Rs 11.99 lakh to Rs 19.49 lakh. According to the release, the price of the automatic variant as well as the four-wheel-drive variant will be announced on July 21. The company is unveiling the new product simultaneously in South Africa and Nepal. And, it intends to introduce this vehicle in Australia and New Zealand soon.
M&M Stock Price History
On Tuesday, the stock reached a record high of Rs 1,121 on the BSE. It has been gaining momentum for the last four days and has gained 14 per cent during this period.
Some analysts said M&M could be a major beneficiary of the strong model cycle in utility vehicles (UV), as they have kept the price target on the stock at Rs 1,315, suggesting a possible upside of 17 per cent over the counter.
What should investors do?
Nomura said the all-new Scorpio-N is another potential winner and it can drive 10-15 per cent growth in total volumes in the utility vehicle space during FY23-24.
M&M’s utility vehicle market share is improving and has grown from 13-14 per cent in FY21-22 to 17 per cent in May 2022.
Emkay Global said the launch of the Scorpio-N on July 30 will further support bookings. Keeping in mind expectations of a staggering improvement in chip supply and a large order book, it has increased M&M’s volume estimates by 3 per cent for FY13 and FY24. The brokerage has increased its FY23/FY24 EPS estimates by 6 per cent due to increase in margin estimates.
“We have a buy rating of Rs 1,150 with a target of Rs 1,250, which is 16 times core June 2024 EPS (DCF-based) and value of investment at Rs 482 per share. We increase the valuation to 14 to 16 times in our DCF model keeping in mind the higher revenue growth and margin assumptions,” said Emkay.
ICICIDirect said in a note that M&M Electric is rapidly changing amid changing technology landscape in the auto space with a pipeline of interesting launches in the PV and LCV front.
M&M plans to unveil its Born Electric strategy on August 15, it said, maintaining its positive outlook on the automaker amid healthy demand prospects across its product profile, focusing on capital efficiency and EV proactivity. The brokerage has set a target of Rs 1,315 on the stock.
Share K Ravi Singh India The global launch could prove to be a game-changer in the SUV market, owing to the popularity of the SUV amongst the customers and the advanced features of the Scorpio N at a competitive price. He added that the stock has started showing enthusiasm and may soon touch the Rs 1,250 level.
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