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Centrum Broking gives ‘buy’ call for M&M, Hindalco, SAIL

Tractor segment could see improvement in FY23 depending on crop yield and monsoons, it said.

New Delhi : The brokerage house Centrum Broking has given a ‘buy’ call for Mahindra & Mahindra, Hindalco Industries, and Steel Authority of India shares.

“While tractor sales have slowed down over a high base and stress in the rural segment, the auto segment is showing improvement as its ‘EBIT’ margin improved 100 basis points quarter-on-quarter to 3.7 per cent. With a healthy order book and improving supply constraints we expect the auto segment to drive growth in the medium term,” the brokerage said for the automobile company Mahindra & Mahindra.

Tractor segment could see improvement in FY23 depending on crop yield and monsoons, it said.

The target price is kept at Rs 1,081 against its current price of Rs 850 per share.

For Hindalco, the target price is seen at Rs 641 as against its current price of Rs 540.

Strong balance sheet of the metal manufacturer and outlook are expected to keep its shares buoyant.

For SAIL, the target price is Rs 200 against its current price of Rs 101.

“The major capex on the next phase of expansion will begin from FY24 onwards and SAIL will continue to reduce debt till then.”

The brokerage expects SAIL’s margins to have nearly bottomed out in Q3FY22 with employee cost peaking and improving steel prices could potentially offset higher coking coal cost.

Source
IANS

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