According to ICICI Securities, a domestic brokerage firm, “fears of an El Nino impact on tractor demand in FY24” have led to a 20% decline in shares of Mahindra & Mahindra over the past few months. to “Buy” and raising its target price to 1,386 cents per share.
“We upgrade M&M to buy from Ed.” read the note. M&M currently trades at 12.5 times FY25E core EPS, compared to the long-term mean multiple of 15 times, after accounting for the recent correction and decrease in tractor volumes.” However, doing business
The financier has cut its FY24E income/PAT gauges to 9 percent/14 percent and has comparatively decreased its TP to 8 percent. 1,386, or 16 times Core EPS for FY24E.
The quantity of tractor has decreased by an average of 12% over the past 15 years during each of the four El Nino events. Subsequently, we are working for a 12 percent farm truck volume decline for M&M in FY24 as against our previous gauge of 6% development,” ICICI Protections said.