21 Mar 2024 , 05:46 PM
Result date: 26th May, 2023
Recommendation: Add
Target price: Rs. 1,360
Mahindra & Mahindra (M&M) posted 21% growth in auto volumes over the year-ago quarter and 8% sequentially. Tractor volumes grew 23% as compared to the year-ago quarter, but fell 15% sequentially. Analysts at IIFL Securities expect revenue share of Tractors to be down from 30% in Q3 to 25% in Q4. Overall, revenue growth is estimated at 29.6% over the year-ago quarter.
Operating leverage and price hikes are key margin tailwinds on a sequential basis, while lower tractor mix is a prominent margin headwind. M&M’s Auto EBIT margin could come in at 7.3% and Tractor EBIT margin is seen at 16.0%.
The company’s Profit After Tax or PAT could grow 41.9% as compared to the year-ago quarter.
Important management insights to watch out for:
March 2023 estimates |
YoY change |
QoQ change |
|
Auto volumes |
189,227 |
21.4% |
7.5% |
Tractor volumes |
89,731 |
23.1% |
(15.2)% |
Revenue (Rs Million) |
221,846 |
29.6% |
2.5% |
EBITDA (Rs Million) |
28,228 |
45.1% |
0.3% |
EBITDA Margin |
12.7% |
136 bps |
(27) bps |
Profit After Tax |
16,560 |
41.9% |
(23.2)% |
Source: IIFL Research
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.