Jefferies has maintained its Buy call on Mahindra & Mahindra (M&M) with an upgraded target price of ₹3,700 per share, representing a 27.6% potential upside from the current market price of ₹2,900. The brokerage highlights improving tractor demand after a 1.5-year slowdown and robust SUV volume growth due to an expanding portfolio. M&M continues to gain market share across segments, prompting Jefferies to increase its EPS projections for FY24-27 by 3-4%, with an expected 19% compound annual growth rate (CAGR) in EPS over this period.
M&M reported a 35% year-over-year increase in net profit to ₹3,171 crore for the quarter ended September 2024, with revenue growing 10% YoY. The company achieved record volumes in its automobile segment, reaching 2,31,038 units, up 9% YoY. Tractor sales also rose by 4% YoY, totaling 92,382 units.
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