Mahindra & Mahindra's (MM) 2QFY21 earnings were driven by strong performance in the Tractor business and steady recovery in Autos. Further, it announced exit from the Aerospace business, which had losses of INR3-4b in FY20. While MM's core business would recover faster, focus on tightening capital allocation could act as a re-rating catalyst. Hence, we see twin levers of EPS growth and re-rating. We upgrade FY21/FY22E EPS by 8%/6.5% to reflect volume upgrade in Tractors as well as tighter cost control. MM is one of the few Auto stocks...