India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
Mahindra & Mahindra (Upgrades continue on better volumes, BUY):
At an analyst meet, Dr Pawan Goenka, President – Farm and Automotive business, Mahindra & Mahindra, reiterated the company’s bullish views on volumes. Management guidance for volume growth is higher than usual, even after accounting for concerns on interest rates and commodity prices. We are factoring in a >150bps decline in EBITDA margin from 2QFY11 level of 15.8%; management said the buoyant volume scenario gives it pricing power, making significant margin erosion unlikely. We upgrade our earnings estimates for FY12 and FY13 by 9-10% on higher volume estimates. Mahindra & Mahindra remains our top pick in the sector; we retain BUY and raise our TP to Rs885 (from Rs850).
No comments:
Post a Comment