M&M Stock: M&M with an attractive valuation, the auto boost attracts investors

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M&M shares were trading at 18 times one-year forward earnings, at par with its historic valuation.

Synopsis

A surge in profitability over the next fiscal year could help the automotive segment more than double its share of total operating profit to 40-45% from the FY21 level.

Mahindra and Mahindra (M&M) shares are likely to remain on investors’ radar despite moderation in the tractor sector. Improved profitability in the automotive segment, helped by new sport utility vehicle (SUV) launches and attractive valuation amid weak equities, will appeal to investors. The stock has fallen more than 11% on BSE over the past three months. The results of the automotive segment, which contributes nearly

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