Mahindra & Mahindra is expected to rise on the bourses today as the brokerage houses reiterated their bullish stance on the stock after the carmaker reported robust quarterly performance in the last quarter of FY25.
M&M is well-placed to outperform across its core businesses, and this will be led by a healthy recovery in rural areas and new product launches across utility vehicles and tractor segments, Motilal Oswal said. The brokerage has raised its earnings estimates on the back of a sustained demand momentum in the both the aforementioned segments. Motilal Oswal maintained its 'buy' rating on the stock and increased the target price to Rs 3,482, implying a 15% upside to the Monday closing price.
Nuvama Institutional Equities, on the other hand, has pegged its price target for the stock at Rs 3,700 and has a ‘buy’ rating on it. It expects the automaker to post a 15% compound annual growth rate in revenue between FY25-FY27, largely led by a 16% growth in autos and 10% growth in the farm segment. The farm segment of the company is expected to post a robust growth mainly due to market share gains, benign government policies for farmers and scaled-up exports, the brokerage said in its earnings review report.
The company is rapidly scaling up its capacity to meet demand, Nuvama said, adding that the monthly capacity of the automaker is being raised from 61,500 units to 69,000 by March-26 and 85,000 units by March-27.
M&M expects to continue to outperform the passenger vehicle industry and only limited cannibalisation due to the recently introduced BEVs, Emkay said in its report. Although the announcement of new internal combustible engine-based vehicles is welcome, a bulk of the growth in the autos segment will largely be led by its electric vehicles, which is a margin-decretive product, Emkay said.
Emkay Global has maintained its ‘add’ rating on the stock and raised the target price by 11% to Rs 3,000. Despite raising the issue of margin-drag by its electric vehicle portfolio, the brokerage has raised the earnings estimate of the company by 6.5% for FY26 and 5% for FY27.
M&M reported a 22% on-year increase in net profit for the March quarter, despite recording a 25% increase in its total expenses. Its revenue for the period also grew 24% on year. As of the year ended March 2025, the company's market share in the SUV space (in revenue terms) rose 210 basis points to 22.5%.
“We have delivered strong growth on the back of stellar execution in F25. Auto and Farm continue to gain market share and expand profitability," Anish Shah, group CEO and managing director of M&M said.
Other brokerage houses such as Kotak Institutional Equities, Jefferies and Nomura have kept their 'buy' rating unchanged on the stock.
