Stock market analyst Hitendra Vasudeo of stockmechanics.com maintained ‘Buy’ rating on Mahindra & Mahindra to achieve a target above Rs 801 in the coming days.

According to Mr. Vasudeo, interested traders can buy the stock around Rs 742 - Rs 727 with a strict stop loss of Rs 694.

Today (July 08), the shares of the company opened at Rs 743 as against its last closure of Rs 750.45 on Tuesday (July 07) on the Bombay Stock Exchange (BSE).

Current EPS & P/E ratio stood at 28.88 and 25.94 respectively. The share price has seen a 52-week high of Rs 834 and a low of Rs 235.50 on BSE.

Mahindra & Mahindra (M&M), in June 2009, said that it is likely to buy out its local partner in Mahindra South Africa (Mahindra SA) that is presently a 92% division.

The company is also probing the likelihood of beginning a local completely knocked down (CKD) assembly facility there.

A decision on buying up the equity stake of its local partner is expected to be taken in a month`s time.

The 8% stake is held by African Automotive Investments Corporation, a division of African Resources and Logistics Corporation.

In May 2009, M&M said that it plan to put in Rs 50 billion towards its expansion plans by FY-12.

M&M will invest Rs 25 billion in its Chakan facility that will have a capacity to make 2, 50,000 vehicles.

It plans to roll out some products in the four-wheeler group in Q3 FY-10 and medium heavy trucks by December-January.

Mahindra & Mahindra has registered a sharp increase of 89.08% in net profit to Rs 4,180.70 million for the quarter ended Mar. 31, 2009 as compared with Rs 2,211 million for the quarter ended Mar. 31, 2008.