M&M - On Track After Pit Stop: Centrum Broking Initiates Coverage

A Mahindra & Mahindra Ltd. Marazzo M8 vehicle sits on display.  (Photographer: Daniel Acker/Bloomberg)

M&M - On Track After Pit Stop: Centrum Broking Initiates Coverage

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

We believe that Mahindra and Mahindra Ltd.'s demand drivers are intact for the tractor industry even after the second wave of Covid-19 and that the company will outperform the industry.

We expect the company to regain lost market share in tractors over FY22-23E on the back of improved supply chain and lower opening dealer inventory at the start of FY22.

The company had lost 300 basis points market share in FY21 owing to supply issues, which had surfaced in our channel checks as well.

The auto segment should do well on cyclical recovery, new launches (New Thar is already receiving overwhelming response), and improving supply chain.

Click on the attachment to read the full report:

Centrum Mahindra & Mahindra Ltd - Initiating Coverage.pdf

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