Citigroup maintains neutral on M&M, raises target price to Rs 590
Neutral Mahindra & Mahindra Ltd. at a price target of Rs 590.0 .
For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 23935.93 crore, down -8.08% from last quarter sales of Rs 26041.02 crore. The company has reported net profit after tax of Rs 22.33 crore in the latest quarter.
While tractor volumes could see an uptick, M&M’s largely diesel utility vehicle portfolio could face downward pressure in BS-VI regime and amidst increased competition, said Citigroup.The brokerage has cut its auto volume estimates, resulting in 1-4% cuts in revenue estimates over FY20-FY22. However, better margins results in operating profit increasing by 0-3% (lower commodity costs). Earnings estimates are increased by 4-9%, said Citigroup.