Analysts raise price targets of M&M on robust Q3 numbers
economictimes.indiatimes.comAnalysts at most top brokerages raised or retained their share price targets on M&M after the company’s net profit in its third quarter exceeded expectations. Stock jumped 6.81% to close at Rs 1,769.8 on Thursday after hitting its 52-week high of Rs 1,784.9. The average analyst price target on the company available on Bloomberg after Q3 results stood at Rs 1884.8, implying an upside of 6.5% from Thursday’s closing.
Analysts at Kotak Securities said that although near-term demand for tractors is expected to be muted, the demand for SUVs is likely to remain steady, supported by a robust order backlog.
“Automotive division demand trends remain healthy, while we expect the tractor volumes demand to recover post Q1FY25E. We expect profitability to remain steady, which will result in healthy cash flow generation that will be deployed to scale up its EV business across the UV and last-mile mobility segments,” said Kotak Securities in a note. Jefferies said that the order book has fallen sharply in the last three months. However, new order inflow is holding up well. The valuations are not cheap, and significant returns are likely to post improvement in tractor demand visibility.
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