BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Mahindra and Mahindra Ltd.’s Q3 FY23 Ebitda margin at 13% (up 100% basis points QoQ) was inline with our estimates with auto/farm equipment segment Ebit margins at 6.7%/16.6%.
M&M's gross margin expanded by 50 bps QoQ and the rest was led by operating leverage. FES segment average selling price has increased from Rs 530,000-560,000/unit a year back, to ~Rs 590,000/unit at present led by price hikes to pass on input cost inflation.
Yet, Ebit per unit remained static at ~Rs 98,000/unit, resulting in segmental Ebitdm declining from ~20% levels to ~16-17% in recent quarters. This is because of inability to hike prices on the per unit profit part, in sync with cost inflation. Thus, we are building-in 18% FES Ebitm in FY24E versus long-term mean levels of ~19-21%.
Per month order addition for key models XUV700, Scorpio N and Thar is more than current monthly production levels.
Thus, we believe capacity addition of ~12,000 unit per annum for these models together in mid-FY24 would drive ~25% volume growth for its utility vehicle portfolio in FY24, implying monthly average of ~38,000 units.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
![](https://images.assettype.com/bloombergquint/2023-08/754b050d-4edd-4cd1-9b60-296cd6787ff0/mahindra_Fcebook.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Rural Markets Will See Boost In Sales During Festive Season, Says M&M’s Veejay Nakra
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-08-14/1q8ntbj8/Roxx-1.webp?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
August Auto Sales Preview: TVS, Bajaj's Momentum Continues; M&M, Maruti And Tata Motors To Disappoint
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-06/891c4870-a782-4a9c-8f40-cefdfd78cae2/Blue_Swift.jpeg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
August Auto Sales: M&M, Bajaj Auto May Lead, Maruti Suzuki Likely To See Decline, Says Nuvama
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-08-14/nk1t0tur/Thar ROXX Unveil.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Mahindra To Transform Thar Into Market Leader For Mid-Sized SUVs Over 3-5 Years
![timelogo](/images/amp-time.png)