Sunday, August 5, 2007

Mahindra & Mahindra - Best buy in Auto Segment

  • Sector : Automobiles
  • CMP : Rs. 677
  • 52 Weeks High : Rs. 1001
  • 52 Weeks Low : Rs. 495
  • 3 Months Target Price : Rs. 850
  • 6 Months Target Price : Rs. 950
  • Risk : Moderate

About the Company

Mahindra & Mahindra Limited (M&M) is the flagship company of US $ 2.59 billion Mahindra Group, which has a significant presence in key sectors of the Indian economy. Mahindra & Mahindra is engaged in the manufacture of utility vehicles (UV), tractors, light commercial vehicles (LCV) and three-wheelers. Now it has started production of LOGAN the mid segment car. In FY06, automotive division contributed to 66% of volumes sales with tractors accounting for the rest. Through investment in its subsidiaries, it has interest in sectors like software, hotels, real estate and financial services. In FY06, M&M had a 44% market share in the domestic MUV segment and a 32% market share in the tractor segment.

Between the Line

At the above price M&M is very good buy and one of the best stock in Auto Segment. If the share went down to Rs. 650 on Monday than it's a blind buy.

Disclaimer: I am holding the above stock and this may influence my recommendations.

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