Jefferies in its post earnings note on M&M has double upgraded the stock to Buy from Hold and has significantly increased its target price for M&M shares. Jefferies now has a target of Rs 2,910 for M&M shares, this is 22% higher than the closing price of M&M shares on May 16 (Rs 2,371).
M&M’s Q4 net profit surged 32% to Rs 2,038 crore amid robust performance in the automotive segment, favourable product mix, and operating leverage benefits. The company’s net profit was at Rs 1,549 crore in the same period last year. Revenues for the automaker came in at Rs 25,109 crore in Q4 against Rs 22,571 crore a year ago.
Jefferies believes that the tractor industry is in a late downturn. The brokerage remains optimistic that the company’s SUV portfolio continues to strengthen further as it plans to launch 13 new SUVs by 2030.
