Mahindra Group stocks, which is one of the largest business conglomerates of India, have delivered up to 103 per cent returns in the last one year, the data from Ace Equity suggest. The India-based multinational business house is engaged in automobiles, auto equipment, financial services, information technologies, real estate and leisure, among others.
Out of eight listed companies, five have delivered strong returns to the investors in the last one month, rising up to more than 100 per cent between February 16, 2022 and February 15, 2023. On the contrary, the remaining three companies have delivered flat to negative returns.
Among the best-performing counters, shares of Mahindra CIE Automotive have jumped about 103 per cent to Rs 399.8 on February 15 from Rs 197.20 about a year ago. The company is a joint venture between Mahindra Group and Spain’s CIE Automotive Group, which is a multi-product automotive component supplier.
Mahindra CIE Automotive is engaged in the business of manufacturing and supplying engine and chassis-forged components for commercial and passenger vehicles. Kotak Institutional Equities has a ‘sell’ rating on the stock with a target price of Rs 270, whereas Motilal Oswal pegs the stock at Rs 435 with a ‘buy’ tag.
Mahindra & Mahindra Financial Services, the non-banking financial services (NBFC) arm of the company has surged about 75 per cent in the last one year to Rs 262.10. The company primarily caters to customers in the rural and semi-urban markets of India, providing auto loans.
Nuvama Institutional Equities upgraded the stock to ‘buy’ from ‘hold’ after its quarterly results. It has a target price of Rs 290 for the counter. However, Prabhudas Lilladhar had given it a ‘hold’ rating for the stock with a target price of Rs 260 for the stock, which is already met.
Mahindra & Mahindra, the flagship company of the Mahindra Group, is also among the best performer stocks from the homegrown conglomerate. The stock has jumped over 66 per cent in the last one year to Rs 1,367.85. The company has been doing excellently, particularly in the SUV segment after launch of XUV700, Thar and XUV300.
The auto major posted 14 per cent growth in standalone net profit at Rs 1,528 crore for the quarter that ended December 2022, with a 41 per cent rise in the revenue to Rs 21,654 crore. Nirmal Bang Institutional Equities has a ‘buy’ rating on Mahindra & Mahindra with a target price of Rs 1,575, whereas Phillip Capital sees the stock at Rs 1,535 with the same rating.
It is followed by Mahindra Holidays & Resorts India, which has spiked 39 per cent in the last one year. Its significant performance can be attributed to revenge spending by Indians after the global pandemic, which aided the hotel business as normalcy was restored.
In its report launched in October 2022, Ventura Securities gave Mahindra Holidays a target price of 576. The company has cited strong fundamentals and regular cash flow as the key reasons for the company’s growth.
Group’s real estate arm, Mahindra Lifespace Developers, is the last name on the list which has surged about 26 per cent in the last one year. The company is engaged in the development of residential projects and large-format developments such as integrated cities and industrial clusters.
Domestic brokerage firm Choice Broking has an ‘outperform’ rating on Mahindra Lifespace Developers with a target price of Rs 573, whereas HDFC Securities sees the stock at Rs 438-459 in the next two-three quarters.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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