Mahindra & Mahindra has not performed well during the first quarter of the current financial year (2021-22). There is a decline in this compared to the first quarter of the last financial year. Mahindra & Mahindra’s EBITDA has fallen to Rs 16.3 billion in the first quarter of the current financial year, which is 7 percent further down according to the estimates of Kotak Institutional Equities. This is natural in view of the decline in the automobile business. But Mahindra & Mahindra has taken strong steps to increase capital investment in the company by exiting some joint ventures and deals by selling its loss-making subsidiaries. It is expected that the company’s Return on Equity (ROE) will improve once the situation of International Farm and Auto Subsidiary improves. Hence its BUY rating is being retained.
Opinion of Mahindra & Mahindra Rating – BUY – Kotak Institutional Equities
Kotak Institutional Equities says that the company’s commodity inflation and the problem of supply of semiconductors will remain a matter of concern. The company’s long-term investments have not been able to give that much return and have incurred a loss of more than Rs 78 crore. Consolidated revenue fell 11 per cent in the first quarter of FY 2021-22. Mahindra & Mahindra has incurred a loss of eight billion rupees in this quarter due to Mahindra Finance’s Ebit loss of Rs 21.8 billion. Kotak Institutional Equities believes that once the problem of supply of semiconductors is resolved, recovery will be visible in the company. The demand for the tractor segment of the company will be good as the monsoon has been good. The government is also spending this year. Therefore, the BUY rating has been retained in this.
Divi’s Laboratories Rating – BUY Target Price Rs -5,465 – View HSBC
HSBC has given a BUY rating to Divi’s Laboratories. There has been an increase of 14 percent in the revenue during the first quarter of the financial year 2021-22 as compared to the first quarter of the financial year 2020-21. Is. It has reached Rs 19.5 billion, which is as expected. The company’s pharmaceutical sales mix is good. The Generic and Custom Synthesis segment business ratio is 50:50. The gross margin of the company is 67 percent. It has maintained a range of 67-69 per cent in the last few quarters. Ebitda margin has also increased. DIVI’S has also invested a lot on its growth. HSBC has revised its target price to Rs 5,465, earlier it was Rs 5130. It has been rated BUY.