M&M Q1 Results Review - Margin Beat Across Segments: ICICI Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Mahindra and Mahindra Ltd.'s Ebitda margin, at 14.9% (up ~200 basis points QoQ), was 110 bps higher than consensus. Auto/farm equipment segment's Ebit margin was up 70 bps/270 bps QoQ at 9.5%/18.5%. M&M is planning SUV capacity expansion to 64,000 units/month by end-FY25, from 49,000 units (as of FY24-end). The company also has an order backlog of ~178,000 units as of end-Q1. We believe, with the recently launched XUV3XO, monthly utility vehicle production levels should move over 45,000 units/month soon. Maintain Buy with an SoTP-based revised target price of Rs 3,349 (earlier Rs 3,365), implying 28 times FY26E core EPS. .Downside risks Rising competitive intensity in UV space.Slowdown in domestic UV market post robust growth across FY22-24. Sharper-than-expected decline in tractor market in FY25 post general elections.Increase in EV launches FY25 onwards may put pressure on profitability in auto segment.Re-emergence of capital allocation in non-core areas. .Click on the attachment to read the full report:.M&M Q1 Results: Profit Misses Estimates On Higher Raw Material Costs.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

M&M Q1 Results Review - Margin Beat Across Segments: ICICI Securities

The brokerage believes, with the recently launched XUV3XO, monthly UV production levels should move over 45,000 units/month soon.

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M&M Q1 Results Review - Margin Beat Across Segments: ICICI Securities

The brokerage believes, with the recently launched XUV3XO, monthly UV production levels should move over 45,000 units/month soon.

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