M&M Q1 Review - All Eyes On Growth Recovery: ICICI Securities
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ICICI Securities Report
Mahindra and Mahindra Ltd.’s Q1 FY22 result was above consensus estimates as Ebitda margin came in at 13.9% (down only 83 basis points QoQ).
Margins drop was led by automotive segment (Ebit margin: 1.7%, down 327 bps), while farm equipment segment held ground (Ebit margin: 20.3%, down 168 bps).
Management’s focus towards improving global subsidiary’s performance is bearing fruit with four consecutive quarters of positive Ebit (highest ever in FES subs at ~Rs 1 billion).
Management remains focused on both tractor business (volume and market share gains) and domestic farm implements business (M&M has ~10% market share/total addressable market: ~Rs 50 billion).
Valuations remain attractive.
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