M&M Q2FY18 Revenue: Standalone Net Revenues stood at Rs. 12,182 crore an increase of 14 % YoY. 1,29,752 vehicles were sold in domestic market, YoY growth of 11.8%. 76,928 tractors were sold in the domestic market, YoY growth of 33%. Total exports were 11757 units (Both Vehicles and tractors).
Valuation: We value M&M based on SoTP valuations and we have a “BUY” rating on the stock. We value the core business at Rs 1323 per share, based on 16 (x) FY19E PE(x) based on EPS of Rs 82.7. We have valued total investments (listed and unlisted) at Rs 426 per share, with a holding company discount of 30%. Our SoTP value for stock comes at Rs 1,749 per share.
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