Citi has maintained its ‘Buy’ rating on Mahindra & Mahindra (M&M) with a target price of ₹3,520, reflecting optimism about its domestic and export performance. In November, domestic UV volumes increased 16% year-on-year (YoY) but declined 15% month-on-month (MoM). While the sequential slowdown could indicate inventory fluctuations, the overall trajectory remains robust.
Tractor volumes presented a mixed picture, with domestic sales rising just 2% YoY (down 51% MoM). However, strong tractor export growth of 64% YoY propelled overall tractor volumes up by 4% YoY. M&M management remains optimistic, citing positive farmer sentiment, healthy reservoir levels, and favorable minimum support prices (MSP) for Rabi crops as key growth drivers.
Citi also emphasized that good progress in Rabi sowing and an expected healthy harvest could sustain strong demand for tractors in the coming months, reinforcing M&M’s leadership in the agriculture and UV markets.
