Jefferies has maintained a buy rating on Mahindra & Mahindra (M&M) with a target price of ₹4,075 per share, indicating an upside potential of approximately 28% from its current market price (CMP) of ₹3,193.
The brokerage highlighted that M&M has delivered its 11th consecutive quarter of double-digit EBITDA growth, showcasing strong operational efficiency. EBIT margins expanded by 1.4-2.6% year-on-year in both the farm and auto segments, reinforcing the company’s improving profitability.
Tractor demand, which had been subdued for the past one and a half years, is now witnessing a recovery. The company expects over 15% growth in Q4, signaling a strong revival in the segment. Meanwhile, M&M’s expanding portfolio is driving robust SUV volume growth, further strengthening its market position.
Additionally, M&M has been consistently gaining market share across passenger vehicles (PVs), tractors, and light commercial vehicles (LCVs) in recent years, solidifying its leadership in multiple categories.
With Jefferies’ target of ₹4,075, M&M is well-positioned for sustained growth, backed by strong SUV demand, a tractor market rebound, and improving margins.
(Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors are advised to do their own due diligence before making any investment decisions.)