HSBC remains positive on the Indian tractor industry, citing favorable factors such as strong reservoir levels, the settling of La Niña, and a low base, which are expected to drive strong tractor volume growth over FY25-27.
Regional reservoir trends align well with Mahindra & Mahindra’s strong market presence, further reinforcing a positive outlook for the company. HSBC has maintained a ‘Buy’ rating on M&M with a target price of ₹3,390. Conversely, it retains a ‘Reduce’ rating on Escorts, with a target price of ₹3,180, reflecting mixed performance expectations across the sector.
The brokerage believes that the tractor industry is well-positioned for sustained growth, supported by strong macroeconomic and climatic factors.
