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Mahindra & Mahindra (MAHM.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 60 days.
This is because the stock has traded off recently, making short term valuation much more compelling. M&M is our
preferred domestic play amidst risks of a global economic slowdown. Inflationary pressures are easing across the auto
industry and aid M&M’s margin expansion given robust volumes performance compared to peers. M&M's exposure to
resilient semi-urban and rural markets means it is likely to continue to outperform the industry in volume terms and thus
enjoy higher operating leverage relative to its peers. The stock is trading at 11x F2013e consolidated earnings.
We estimate that there is about a 70% to 80% or "very likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: Cautious
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Mahindra & Mahindra (MAHM.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 60 days.
This is because the stock has traded off recently, making short term valuation much more compelling. M&M is our
preferred domestic play amidst risks of a global economic slowdown. Inflationary pressures are easing across the auto
industry and aid M&M’s margin expansion given robust volumes performance compared to peers. M&M's exposure to
resilient semi-urban and rural markets means it is likely to continue to outperform the industry in volume terms and thus
enjoy higher operating leverage relative to its peers. The stock is trading at 11x F2013e consolidated earnings.
We estimate that there is about a 70% to 80% or "very likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: Cautious
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