Based on the intrinsic value analysis, Mahindra and Mahindra Ltd. (M&M) is currently overvalued. With an intrinsic value of 1,633 per share and a market price of 2,665, the stock is trading at a premium of about 39%. This suggests that M&M does not present an attractive investment opportunity at these levels.
Given my outlook for the Nifty index to correct in the coming weeks, I believe many stocks, including M&M, are overvalued and may face downward pressure. Investors who chase these stocks by buying into strength or during market dips could be setting themselves up for a bear trap.
Instead, I plan to begin accumulating M&M shares in the range of 1,700 to 2,100. I see potential for new highs in the long-term, but only after the stock has corrected to more reasonable levels.
Given my outlook for the Nifty index to correct in the coming weeks, I believe many stocks, including M&M, are overvalued and may face downward pressure. Investors who chase these stocks by buying into strength or during market dips could be setting themselves up for a bear trap.
Instead, I plan to begin accumulating M&M shares in the range of 1,700 to 2,100. I see potential for new highs in the long-term, but only after the stock has corrected to more reasonable levels.
Do what others don’t know, and don’t do what others know.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Do what others don’t know, and don’t do what others know.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.