According to an update released on July 27, the brokerage said: "Consolidated financials show that revenue and profit from the non-parent businesses constitute 47% of revenue and 30% of net profit. We have raised our stand-alone EPS estimates for FY07 by 8.4% and for FY08 by 4.1%. We maintain our OUTPERFORMER rating on a valuation of 10.9x FY08E EPS of Rs 52.9. Considering a P/E multiple of 16.7 on the core parent FY08E EPS of Rs 34.6, we peg each M&M share to be available at Rs 380 (core parent) + Rs 197 (non-parent)."
