Jefferies has reiterated its Buy rating on Mahindra & Mahindra (M&M) while cutting its target price slightly to ₹4,000 from ₹4,075, citing a conservative revision in valuation assumptions despite continued strong financial delivery.
The brokerage noted that M&M has now delivered its 12th consecutive quarter of double-digit EBITDA growth, underscoring the strength and consistency of its operations. Jefferies estimates that the company is poised to deliver a 12% volume CAGR and an 18% core EPS CAGR over FY25–28, driven by both its auto and farm equipment businesses.
Jefferies also sees a compelling re-rating opportunity, supported by M&M’s improving franchise, focused capital allocation, and leadership in the high-growth SUV and tractor markets. The recent performance also reflects operational discipline, with supply-side normalisation and pricing discipline driving margin improvements.
While near-term valuation headwinds prompted a small target revision, the brokerage maintains that M&M is among its preferred picks in the Indian auto space, with continued upside potential as investor confidence builds on its consistent delivery and future-ready initiatives.
Disclaimer: The views expressed are those of the brokerage and not the publication. Investors should consult their financial advisor before taking investment decisions.
