M&M’s stock price surged over 2% to reach a record high on Tuesday, driven by analysts maintaining their bullish outlook. Shares of Mahindra & Mahindra (M&M) rallied by as much as 2.71% to ₹3,006.45 on the BSE.
During its Investor Day presentation, M&M announced plans to introduce 23 new vehicles by 2030, including several new SUVs. The company highlighted an increase in its SUV market share from 15% in FY21 to 18% in FY24.
M&M also unveiled plans to launch seven Born Electric Vehicles (BEVs) by the end of the decade, showcasing three feature-rich models (E8, E9, BE.5) with high range, emphasizing performance and aspirational value.
Jefferies, a brokerage firm, praised the design of M&M’s new electric SUVs, foreseeing strong customer appeal. It projected M&M’s auto volumes to grow at a 14% CAGR from FY24 to FY27E, driven by an 18% CAGR in SUV volumes.
Jefferies upgraded its EPS estimates for FY25-27E by 2%, anticipating higher tractor volumes. The firm expects M&M to achieve a 12% volume growth and an 18% EPS CAGR over the same period, raising its target price for M&M shares to ₹3,510 from ₹2,910.
M&M plans to invest ₹27,000 crore in capital expenditures between FY25-27. Chirag Jain, Senior Research Analyst at Emkay Global Financial Services, highlighted M&M’s robust pipeline of upcoming launches and growth potential in domestic tractors, supported by exports and farm mechanization.
Emkay Global raised its EPS estimates for FY25E and FY26E and increased its target price for M&M shares to ₹3,000 from ₹2,550, maintaining an ‘Add’ rating. Nuvama Institutional Equities also raised its EPS estimates and target price to ₹3,500 from ₹2,760, retaining a ‘Buy’ call on the stock.
M&M shares have surged more than 19% in the past month and over 75% year-to-date, delivering multibagger returns exceeding 110% over the past year.
As of 9:45 am, M&M shares were trading 2.47% higher at ₹2,999.25 on the BSE.
Disclaimer: The views and recommendations in this article reflect analyst opinions and should be independently verified before making investment decisions.
