Mahindra & Mahindra Ltd.- Long Term Buy

Market Cap:  91,437 Crores                     Current Price: 1439
Target Price: 1850                                  Upside potential: 26 % (9-12 months)
Stock P/E: 27.14                                    Book Value: 482
Dividend yield: 0.8 %                             52 Week High/Low:  1457.95 / 482.92




Mahindra and Mahindra Limited is engaged in the manufacture of passenger cars, commercial vehicles, such as vans, lorries and over the road tractors for semi-trailers, and tractors. The Company's Automotive Segment consists of sale of automobiles and spare parts. Its Farm Equipment Segment consists of sale of tractors and spare parts. Its IT Services segment consists of business consulting and software implementation. Its Financial Services consists of services relating to financing, leasing and hire purchase of automobiles and tractors. Its Steel Trading and Processing segment consists of trading and processing of steel. Its Infrastructure segment consists of operating of commercial complexes, project management and development. Its Hospitality segment consists of sale of Timeshare. Its Systech segment consists of automotive components. Its Two wheelers segment consists of sale of two wheelers and spare parts. Its Others segment consists of logistics, after-market and investments.

As depicted on the monthly chart, the stock has rallied from the low of 117.50 (Dec-08) to the high of 1434 (Aug-14) then consolidated at around 23% retracement level. • The stock has shown good recovery from 23% retracement level and now it is trading at all time high level. • The stock is in big uptrend and trading above all major moving averages 200 Week M.A Rs.1123, 200DMA Rs.1292 and 50DMA Rs.1403. • As per the Price extention pattern target of even 2090 seems possible with long-term perspective.

Considering all above factors we can build long position in the stock with 9-12 months perspective and target can be placed at around 1850. We can accumulate the stock in the range of 1440-1460. One can hold the stock for longer time for better returns.

Disclaimer : I am not authorized by SEBI as Stock Analyst to offer any kind of financial advise on stocks. I am just an individual investor, not a research analyst. So don't take anything for granted, consult authorized financial adviser before making investment decision. You can not hold me responsible for your profits nor your losses, this blog represents only my opinion, not advise from authorized stock research analyst.

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