Major brokerages have upgraded their targets in response to Mahindra & Mahindra's (M&M) increased demand in both its tractor and SUV categories. Brokerages predict a bright future for the current market price of Rs 2,891, citing strong growth and sector wide strategic expansions.
Jefferies: Buy | Price Increase: Rs 3,700 (from Rs 3,510)
Jefferies increased its target to Rs 3,700 and reaffirmed its "Buy" recommendation for M&M. The company anticipates steady increase in SUV sales due to M&M's diversified portfolio and observes a resurgence in tractor demand, particularly following a 1.5-year hiatus. Jefferies increased its FY24–27 EPS projections as a result of M&M gaining market share across all segments.
Nomura: Buy| Target: Rs 3,664 (up from Rs 3,417)
Nomura has lifted its target price to Rs 3,664 while maintaining its 'Buy' rating. The brokerage agrees with Jefferies' positive prognosis and acknowledges M&M's solid performance and demand visibility in its key segments.
JP Morgan: Overweight | Up from Rs 3,330 to Rs 3,400 as the target
JP Morgan kept its 'Overweight' rating on M&M and raised its target price to Rs 3,400. The brokerage is still hopeful about the company's future growth.
Morgan Stanley: Overweight | Target: Rs 3,336 (Up from Rs 3,304)
Morgan Stanley also maintained its 'Overweight' rating and increased its target to Rs 3,336 based on M&M's key areas' solid fundamentals and growth potential.
CLSA: Outperform | Target: Rs 3,440 (Up from Rs 3,400)
CLSA maintained its 'Outperform' rating while increasing its target for M&M to Rs 3,440. The company is especially inspired by M&M's strong SUV growth and advantageous market placement.
Macquarie: Outperform | Target: Rs 3,441
Macquarie set a target of Rs 3,441 and reaffirmed its 'Outperform' rating. It maintained optimism in the SUV market while highlighting the company's strong Q2 results and increasing tractor guidance. According to Macquarie, assuming demand keeps up its current pace, ICE SUV capacity may be limited by FY26.
Many brokers believe that M&M's growth narrative will continue to improve. M&M seems well-positioned for sustained growth in both its auto and agriculture areas because to planned expansions, steady increases in market share, and a favorable demand outlook.
