HSBC has reiterated its Buy rating on Mahindra & Mahindra with a target price of ₹4,250, highlighting balanced growth across segments but cautioning on tractor normalisation.
After a strong FY26 performance, HSBC expects tractor growth to moderate to a 3–5% CAGR, reflecting a high base and potential cyclical normalisation. However, the brokerage sees SUV launches and calibrated capacity expansion as key supportive factors for overall growth.
Margins are expected to remain resilient despite the ramp-up in electric vehicle investments. HSBC believes disciplined cost management and favourable mix will help cushion profitability.
The brokerage flagged an early or strong El Niño as a key downside risk, given its potential impact on rural demand and tractor sales.
Disclaimer: The views expressed above are those of HSBC and do not represent the views of Business Upturn. This article is for informational purposes only and does not constitute investment advice.