M&M hits lifetime high on better growth prospects

Mahindra and Mahindra (M&M) has surged over 4% to Rs 1,281 on expectation of agri machinery sector would get strong booster over next 2-3 years as better prospects of agriculture sector supported by number of government aids and more focus on rural economy by new government.

The stock opened at Rs 1,240 and hit a high of Rs 1,284, also its lifetime high on National Stock Exchange (NSE). A combined 371,186 shares changed hands on the counter so far on NSE and BSE.

Mitul Shah analyst at Karvy Stock Broking reiterate ‘buy’ on M&M with target price of Rs 1,420 per share as analyst expects revival in auto sales by H2FY15 (October-March).

“We expect M&M to benefit largely in FY16-FY17 on account of rapid usage of automation and equipments in agri industry and auto sales recovery, despite near term headwinds on account of delay in monsoon,” said analyst in a client note.

Analyst at Anand Rathi Shares and Stock Brokers maintain ‘hold’ rating on the stock as analyst expects the long-term outlook of M&M remains good with likelihood of agri-mechanisation, launches in the UV1 segment in FY16, and recovery in the CV cycle.

Mahindra India