According to a release issued recently, the brokerage house said: "At current market price of Rs 835 and stand-alone earnings, M&M is quoting at a PER of 22.5x. On EV/Sales and on EV/ EBIDT basis it is quoting at 2.64x and 14.34x of its Sep TTM earnings,respectively.
"Going forward, revenues from its auto components business are expected to have major share in its consolidated results. After the listing of M&M Financial Services Ltd and Tech Mahindra (Mahindra British Telecom) , the company is planning to list more of its subsidiaries which would result into unlocking of its value in these companies. Thus, due to steady business and value accretive subsidiaries, we believe even though the company is fairly valued, investors can buy the stock."
