Motilal Oswal View on Mahindra, Maruti Suzuki, Hero Honda

Buy Mahindra & Mahindra

Motilal Oswal has maintained buy rating on Mahindra & Mahindra, in its report dated September 2, 2008.

"Overall volumes improved by 7.9% YoY to 26808 units and 12.6% YTD growth. Tractor sales increased by 15.6% YoY to 7597 units (16% domestic growth and 6% export growth), and YTD growth of 10.6%. We estimate 10.7% volume growth in FY09E, implying residual growth of 9.7%. There is a strong possibility of volume upgrade in tractors and 3-wheelers, whereas we would revise downwards our volume estimates for Logan. On our current estimates, the stock trades at 8.6x FY09E EPS of Rs 68.6 and 7x FY10E EPS of Rs 84.3. Maintain Buy," says Motilal Oswal's research report.

Buy Maruti Suzuki

Motilal Oswal has maintained buy rating on Maruti Suzuki, in its report dated September 2, 2008.

"Domestic volume de-grew by 10% YoY to 54113 units, first significant contraction in a long time. Exports grew by 1% to 5795 units. Our current estimate is FY09 volume growth of 11.6% (8% domestic & 60% export growth), implying residual growth of 15% v/s YTD growth of 6%. We would be revising our volume estimates downwards. The stock trades at 10.6x FY09E EPS of Rs 62.8 and 9.3x FY10E EPS of Rs 71.2. Maintain Buy," says Motilal Oswal's research report.

Buy Hero Honda

Motilal Oswal has maintained its buy rating on Hero Honda in its September 2, 2008 research report. "Hero Honda volumes increase 26.8% YoY to 305,516 units, in-line with our estimates and the strongest growth among all two-wheeler companies. YTD volumes grew by 19% to 1,481,077 units. Motorcycle volumes grew by 28% YoY to about 293,000 units and YTD growth of 19%. Also, scooters registered about 4% volume growth to about 12,000 units and YTD growth of 30.5% to about 49,800 units. Our FY09 estimates factor in a 8.1% volume growth, implying a 1.7% residual growth. We are in the process of reviewing our volume estimates. Based on our current estimates, the stock trades at 15.1x FY09E EPS of Rs 56.6 and 13.4x FY10E EPS of Rs 64. Maintain Buy." According to Motilal Oswal report.