CLSA has sharply raised a target price on Mahindra & Mahindra to Rs 1,220 versus their earlier target price of Rs 1,090.
CLSA believes that the sharp turnaround in consolidated earnings and RoE has driven this re-rating on M&M. They are estimating consolidated RoE to rise from 9 percent from FY21 to up to 16 percent by FY23.
In terms of core businesses, they expect a strong earnings growth both for farms and autos with a consolidated CAGR of 20 percent over the next two years.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.