CITI has reiterated its buy rating on Mahindra & Mahindra (M&M), setting a target price of ₹3,700, which implies a 15% upside from the current market price of ₹3,225.
The brokerage noted that M&M’s Q1 performance was marginally below estimates at the EBITDA level, primarily due to weaker gross margins. However, lower depreciation costs and higher other income helped boost profit after tax (PAT) for the quarter.
CITI remains positive on the company’s demand outlook, particularly from the rural segment, where demand trends have been encouraging. Although the management acknowledged ongoing weakness in urban demand, it expressed optimism about a recovery going forward.
M&M’s UV (Utility Vehicle) segment continues to benefit from product refreshes and the growing adoption of battery electric vehicles (BEVs). The company’s upcoming model pipeline remains robust, with a new UV platform set for launch on 15th August and two more BEV models scheduled for January 2026.
Disclaimer: The views expressed in this article are based on brokerage reports and do not constitute investment advice. Please consult your financial advisor before making any investment decisions.
