CLSA has maintained its Outperform rating on Mahindra & Mahindra and raised the target price to ₹4,702, citing sustained leadership in the utility vehicle (UV) segment and a strong order book.
The brokerage highlighted that M&M continues to maintain revenue leadership in UVs, supported by a robust launch pipeline and disciplined execution. According to CLSA, consistent product refreshes and capacity additions have helped the company consolidate market share gains across segments.
Q3 auto EBIT margin came in at 9.5%, beating estimates, reflecting favourable mix and operating leverage. CLSA expects the company to deliver a 20% EBITDA CAGR over FY26–28, underpinned by sustained SUV demand and execution momentum.
On tractors, CLSA sees the segment growing 7% in FY27, suggesting a stable rural demand environment and continued leadership in the domestic tractor market.
Disclaimer: The views expressed above are those of CLSA and do not represent the views of Business Upturn. This article is for informational purposes only and does not constitute investment advice.
