Mahindra & Mahindra: Undervalued, underappreciated and unfolding

研报英文原文证据摘录

Mahindra & Mahindra: Undervalued, underappreciated and unfolding

Global Research

31 July 2026ab

First Read

EquitiesMahindra & Mahindra

Undervalued, underappreciated and unfolding India

Automobile Manufacturers

12-month rating Buy

Growth drivers remain firm

M&M's Q1FY27 results came in below our expectations, with revenue falling 2% short 12m price target Rs4,700.00

of our estimates and EBITDA missing by 7%, entirely due to notional MTM hit of 85bps Prior : Rs4,590

on account of commodity hedging, management has largely maintained its growth

Price (30 Jul 2026) Rs3,278.9

outlook for both the Auto and Farm segments. However, it flagged potential headwinds

from commodity cost inflation, particularly in the Farm business, given its higher RIC: MAHM.BO BBG: MM IB

exposure to steel and rubber costs, which are largely unhedged. In contrast, Trading data and key metrics

management expects margin pressures in the Auto business to ease going forward.

52-wk range Rs3,801.80-2,951.20

Reflecting this cautious outlook, we have revised our FY27 earnings estimates

Market cap. Rs3,937b/US$41.1b

downward by 3%, while keeping our FY28 projections broadly unchanged.

Shares o/s 1,201m (ORD)

Encouragingly, management commentary pointed to resilient rural demand trends,

helping alleviate concerns around the impact of a weaker-than-expected monsoon on Free float 75%

consumption. We maintain our Buy rating on the stock with a revised PT of Rs4,700. A Avg. daily volume ('000) 2,891

~12x core EV/EBITDA (ex subs at 50% hold-co discount) valuation fails to reflect Avg. daily value (m) Rs9,004.3

Mahindra's superior execution, resilient Farm franchise, and strong upcoming auto Common s/h equity (03/27E) Rs872b

launches.