Wednesday, June 25, 2008

Buy Recommendation

Keep buying on Mahindra and Mahindra with a target price of Rs 800. According to media reports, Mahindra and Mahindra (M&M) will be selling a 10% stake in its used car business, Mahindra First Choice (MFC), to PHI Advisors for about Rs 80 crore. The company's management, in a media interview, has said that it plans to infuse Rs 20 crore via rights issue and Rs 60 crore via a stake sale into MFC. In case there is a 10% stake sale for Rs 80 crore, MFC's enterprise value would rise to Rs 800 crore.

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