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Strong 3Q results
M&M reported a strong 46% YoY growth in net profits in 3Q driven by strong
volume growth and relatively stable margins. Cost pressures are rising but
with strong growth outlook for both UVs and tractors, multiple new launches
and minimal incremental competition, M&M is best-placed to defend margins
at 15%. We maintain our FY11-13 profit forecasts but cut EPS by 3%
factoring in dilution from the ESOP trust share allotment. Our target price
drops to Rs875 (34% upside) on account of the dilution. M&M remains our top
pick in India Autos. Maintain BUY.
Visit http://indiaer.blogspot.com/ for complete details �� ��
Strong 3Q results
M&M reported a strong 46% YoY growth in net profits in 3Q driven by strong
volume growth and relatively stable margins. Cost pressures are rising but
with strong growth outlook for both UVs and tractors, multiple new launches
and minimal incremental competition, M&M is best-placed to defend margins
at 15%. We maintain our FY11-13 profit forecasts but cut EPS by 3%
factoring in dilution from the ESOP trust share allotment. Our target price
drops to Rs875 (34% upside) on account of the dilution. M&M remains our top
pick in India Autos. Maintain BUY.