Objective: ₹ 2,700
CMP: ₹ 2,903.15
We attend the analyst meeting of Mahindra and Mahindra, held in accordance with the SML Isuzu acquisition.
M&M has acquired approximately 59 percent participation in SML Isuzu of Existence Sumitomo Corporation and Isuzu Motors for a cash consideration of ₹ 550 million rupees, with an additional open offer for 26 for participation. Through this acquisition, M&M aims to strengthen its presence of +3.5Ton CV (approximately 3 percent market share compared to 52 percent in LCV of less than 3.5ton) and duplicate its participation to 6 percent immediately, with an objective to reach 10-12 percent of FY36.
Bears improving its market positioning, M&M expects synergies in costs, networks, platforms and brand. However, the financial impact remains limited, with less than 2 percent of income and around 1 percent of Ebitda/Pat sum on a pro -form base. The company is aimed at completing the acquisition for December 25.
In the midst of a demand perspective of the silenced photovoltaic industry, visibility for M&M also remains limited, with the launch cycle of the ice SUV product now to a large extent. In addition, although the acquisition reflects the continuous approach of M&M in the value of value capital of value, and unlocks synergies in the parameters, the financial impact remains limited, with approximately 2 by central income and around 1 per basic form.
We maintain ADD with TP without changes based on SOTP or ₹ 2,700.
Posted on April 29, 2025