Mahindra & Mahindra (M&M) has captured the interest of various brokerage firms, each offering a unique perspective on the company’s strengths and potential growth. With recent performance highlights and projections for future growth, here’s a consolidated view of what brokerages have to say, including their target prices, recommendations, and key takeaways.
Summary of Brokerage Calls on M&M
| Brokerage House | Call | Target Price (₹) | Upside/Downside from CMP (₹2,900) |
|---|---|---|---|
| Jefferies | Buy | 3,700 | 27.59% Upside |
| Citi | Buy | 3,590 | 23.79% Upside |
| Goldman Sachs | Buy | 3,600 | 24.14% Upside |
| Macquarie | Outperform | 3,441 | 18.66% Upside |
| BofA Securities | Buy | 3,600 | 24.14% Upside |
Highlights from Each Brokerage
Jefferies: Buy with Target Price ₹3,700
Upside: 27.59%
Key Insights: Jefferies highlights a positive shift in tractor demand after 1.5 years, coupled with an expanding product portfolio. M&M’s strong SUV segment performance and consistent market share gains across segments add to their optimistic outlook. Jefferies has revised its EPS estimates upwards by 3-4% for FY24-27, projecting an EPS CAGR of 19% over this period.
Citi: Buy with Target Price ₹3,590
Upside: 23.79%
Key Insights: Citi’s Buy rating stems from better-than-expected Q2 results, particularly in the farm and auto segments. Strong retail volume growth during the festive season has bolstered the demand outlook. However, Citi notes potential near-term margin pressures associated with M&M’s BEV (Battery Electric Vehicle) launches.
Goldman Sachs: Buy with Target Price ₹3,600
Upside: 24.14%
Key Insights: Goldman Sachs raised its guidance on M&M’s tractor sales and sees substantial growth potential in the SUV segment. The phasing out of introductory pricing schemes is expected to boost margins in the automotive segment. M&M’s robust performance has earned it a spot on Goldman’s APAC Conviction List, indicating high confidence in the stock.
Macquarie: Outperform with Target Price ₹3,441
Upside: 18.66%
Key Insights: Macquarie maintains an Outperform rating on M&M, driven by growth in the tractor and SUV segments. However, it warns of potential capacity constraints for ICE SUVs by FY26 due to strong demand momentum.
BofA Securities: Buy with Target Price ₹3,600
Upside: 24.14%
Key Insights: BofA Securities is optimistic about sustained growth in the SUV segment and a recovering tractor cycle. Upcoming EV launches are anticipated to further support M&M’s growth trajectory, reinforcing BofA’s confidence in M&M’s multi-segment potential.
Brokerages are broadly bullish on M&M, with most firms issuing a Buy or Outperform recommendation. Strong performance in the SUV and tractor segments, alongside potential growth from EV launches, underscores this positive sentiment. Despite possible near-term margin pressures related to BEV rollouts, M&M’s expanding portfolio and market strength position it well for future growth.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions. Brokerage views are based on independent analysis.
