HSBC has maintained a Buy rating on Mahindra & Mahindra (M&M) with a target price of ₹3,470, citing improving electric vehicle (EV) margin potential.
The brokerage believes that M&M’s EV margins could improve to mid-single digits over the next 12–18 months. Moreover, factoring in PLI incentives, profitability could even match that of ICE vehicles in the medium term.
However, HSBC also flagged taxation changes as a key medium-term risk, and noted that low EV sales remain a key downside risk to monitor.
Overall, HSBC remains positive on M&M’s EV roadmap, underpinned by its product pipeline, cost controls, and regulatory tailwinds.
Disclaimer: The views and target prices mentioned in this article are as stated by HSBC. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
