Mahindra & Mahindra Shares Rally Over 6% in 5 Days: Here's Why

Mahindra & Mahindra (M&M) shares extended gains for the third consecutive trading session as investor sentiment remained positive supported by positive cues. On Wednesday, the shares of the automaker climbed over 2.3% on the National Stock Exchange. In the last 5 trading sessions, M&M shares have surged over 5.7% on the bourses.

At 02:25 pm, shares of M&M were trading at ₹3,186.40 price level, up by 2.96% on the NSE.

The stock is now up by more than 27% from April lows. Last month, M&M reported strong growth of 17.3% year-on-year (YoY) in the automotive segment, with 84,110 units. SUV segment volumes for the month stood at 52,431 units, rising by 21.3% YoY. However, M&HCV (medium and heavy commercial vehicle) witnessed a moderate growth trajectory of 1% YoY at 1,094 units.

Tractor sales also reported a healthy growth of 9.5% YoY at 40,643 units. Within this, domestic sales reported healthy growth of 10.4% YoY at 38,914 units. "In PV space, M&M continued with its healthy performance, growing 21.3% YoY at 52k units. Post festive’24 this is the largest volume print at M&M," ICICI Direct stated in its report.

So far this year, shares of the automaker have remained largely range-bound, albeit in the green territory.

Currently, the shares are down by just around 2% from their 52-week high price level of ₹3,270.

"Going ahead, the company expects tractor industry volume growth to be in mid-single digit while the outlook for SUV business including the e-SUV portfolio remains pretty strong from the company. M&M’s execution has been quite impressive across core categories with robust margins as well as market share expansion in farm business and revenue market share expansion in the UV business," PL Capital said in its report.

In CY26, the company aims to launch 7 products, including 2 midcycle updates in its SUV lineup. The automaker is aiming for further product intervention planned by FY30 to support future growth.

The brokerage firm has maintained its 'Buy' rating on the stock with a target price of ₹3,539, up from the previous target of ₹3,218.