Q4 results make M&M a short term buy.

>> Sunday, May 31, 2009

Stock - Mahindra & Mahindra Ltd.
CMP - 675.00
BSE Code - 500520
52 Week H/L - 700 - 235.50

Summary: Last week the company announced its quarterly results. The results were profits surges 89% jump in its net profit at Rs 418.07 crore for the quarter ended March 31, 2009.
Net profit of the company year ago was 221.10 crore in the March quarter of FY'08.
The total income increased 17.02 per cent at Rs 3,715.88 crore during the quarter as against Rs 3,175.45 crore in the corresponding period the previous fiscal.
M&M had merged Punjab Tractors Ltd with itself and the consolidated figures of the firm include the profits of PTL (Punjab tractor Ltd.)


The Dividend Trail : The board has declared a dividend of 100 per cent at the rate of Rs 10 a piece, on shares of the face value of Rs 10 each, for the financial year ended March 31, 2009.

Why is M&M a short term buy ?
When Auto makers in US an Japan are struggling to survive this Indian brand which manufactures Tractors and various other SUV has managed to become a out performer during the time of crisis.

It made a new 52 weeks high of 700 on this Friday. The trend is basically positive for this stock.
Buying the stock at current levels for targets of 740 - 750 within a month.

Long term investors should rather buy this stock at lower levels.


1 comments:

Puneet June 16, 2009 at 9:39 PM  

Nice analysis Chirag. Looks good.
However with such fine results, dont you think it merits a long term buy?