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Analysts' corner

Source : BUSINESS_STANDARD
Last Updated: Thu, Dec 13, 2012 03:08 hrs
A customer stands next to a Mahindra vehicle on display inside the company's showroom in Chandigarh

MAHINDRA AND MAHINDRA
Reco price/date: Rs 928/December 12
Current/Target price: Rs 948/Rs 986
Mahindra and Mahindra (M&M) has announced that it will increase the prices of its products by over one per cent from January 2013 to mitigate the impact of rising input costs, mainly from commodity prices, and also adverse currency movements. The price hike will be carried out across the commercial and passenger vehicle segments. Analysts believe that the price hike will not have a major impact on the company's volumes as it continues to witness strong demand. The stock is trading at 14.8 times FY14 estimated earnings. Maintain Accumulate.

Angel broking

CROMPTON GREAVES
Reco price/date: Rs 118/December 12
Current/Target price: Rs 113/Rs 103
Crompton Greaves' losses in the international segment look set to continue in the second half of FY13. In addition to restructuring costs, Crompton will also book retrenchment expenses in the March 2013 quarter; the quantum of which has not been disclosed by the management. Competition in the domestic T&D segment remains fierce given Chinese and Korean players are now setting up facilities in India, meaning no foreseeable respite to margin pressure. And a weak investment cycle doesn't augur well for industrial revenues. Downgrade Crompton to Sell from Neutral.

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