Update on the Indian Equity Market:
\nOn Thursday Nifty closed -0.1% lower at 11,527. Among the sectoral indices Bank (-1.4%), PVT Bank (-1.4%), FIN Services (-1.0%) closed lower. IT (+1.50%), Pharma (+0.9%) and FMCG (+0.8%) closed higher. ICICI Bank (-2.1%), Bharti Airtel (-1.9%) and Axis Bank (-1.9%) closed on a Negative note. Infratel (+10.9%), GRASIM (+7.2%) and Titan (+5.9%) were among the top gainers.
\nExcerpts from an interview of Mr. Hemant Sikka, President Farm Equipment Sector, M&M with CNBC-TV18 dated 2nd September 2020:
\n\u2022\tTractor sales were up 65% YoY, M&M remains positive because of good harvest and bountiful monsoon.
\n\u2022\tThe production started from mid-May and now plants are running at 100% capacity.
\n\u2022\tThe demand is robust throughout the country. The kharif sowing is going well which gives a confidence to farmers.
\n\u2022\tThe domestic market grew by 69% in August 20.
\n\u2022\tOn Finance, the availability is better compare to 3-4 months back. Initially finance was an issue as offices were not open, it was difficult for people to reach offices.
\n\u2022\tThe improvement in financing is seen from middle of June. The collection is also good as farmers have a better cash flow.
\n\u2022\tMr. Sikka said that for the next 3 months the company is expecting a full blast of production.
\n\u2022\tThe stock is at historic low levels.
\n\u2022\tThe challenges on supply side had eased out. All suppliers have ramped up their production.
\n\u2022\tA good festive season is expected as supply chains are coming back on track and all factories running.
\nConsensus Estimate: (Source: market screener and Investing.com websites)
\n\u2022\tThe closing price of M&M was \u20b9 642\/- as of 03-September-2020. It traded at 25x\/ 18x\/ 16x the consensus Earnings per share estimate of \u20b9 26.1\/35.7\/41.1 for FY21E\/ FY22E\/ FY23E respectively.
\n\u2022\tThe consensus average target price for M&M is \u20b9 585\/- which implies a PE multiple of 14x on FY23E EPS of \u20b941.1\/-.
\nDisclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Update on the Indian Equity Market: On Thursday Nifty closed -0.1% lower at 11,527. Among the sectoral indices Bank (-1.4%), PVT Bank (-1.4%), FIN Services (-1.0%) closed lower. IT (+1.50%), Pharma (+0.9%) and FMCG (+0.8%) closed higher. ICICI Bank (-2.1%), Bharti Airtel (-1.9%) and Axis Bank (-1.9%) closed on a Negative note. Infratel (+10.9%), GRASIM […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,94],"tags":[108,410],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1337"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1337"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1337\/revisions"}],"predecessor-version":[{"id":1338,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1337\/revisions\/1338"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}