The farm equipment business, which supported earnings in a tough year, is likely to grow in the mid-single digits in FY22 after a 26% industry growth in FY21.

Synopsis

Losses from its international subsidiaries have dropped significantly and free cash flow — cash from operations after deducting capital expenditure — has risen to nearly Rs 6,700 crore in FY21, a multi-year high, as the company continues to adhere to a stringent capital allocation policy.

ET Intelligence Group: Mahindra & Mahindra’s sustained focus on cash flow generation, coupled with an aggressive product line-up for the farm and automotive segments, is likely to result in an uptick in its ascribed price-earnings (PE) multiple and the stock may continue its outperformance. M&M’s stock has outperformed the Sensex 30 by 20% in the last year. It is now trading at 16 times core business earnings, which is at a 20% discount to its

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