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EV bet to give Mahindra’s valuation an all-wheel drive

Synopsis

The monetisation could add around ₹130-160 per share to the SUV business valuation and its share could reach a quarter of the total fair value of the company as the valuation of the SUV business shoots up. The SUV business is in a sweet spot after a gap of nearly eight years, with positive triggers resulting in continuous improvement of the fair value of the SUV business.

ET Intelligence Group: The SUV business of Mahindra & Mahindra has witnessed a major valuation boost from the success of its new launches in the last 24 months. The value creation of the SUV business is likely to further strengthen with the monetisation of its four-wheeler EV (4wEV) subsidiary as investors start ascribing higher terminal value to its SUV business thanks to improving prospects of volume share from EVs.

The monetisation could add

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