Mahindra & Mahindra Stock Soars Nearly 5%: Should You Buy After Impressive Q4 Results?

Mahindra & Mahindra Shares Surge After Impressive Q4 Results

In a notable turn of events, Mahindra & Mahindra (M&M) saw its stock price soar nearly 5% during intraday trading on Tuesday, May 6, following the announcement of its fiscal Q4 results. Opening at ₹3,082.85, the shares quickly climbed to an impressive intraday high of ₹3,159, even as the broader market faced challenges. By around 10:25 AM, M&M shares were up by 2.81%, trading at ₹3,106.45, while the Sensex index dipped 0.33% to 80,531.

Strong Q4 Performance Boosts Share Price

The recent spike in M&M’s stock can be attributed to the company’s robust performance in its standalone net profit and revenue for Q4 FY25. The firm reported a remarkable 21.85% year-on-year (YoY) increase in its net profit, reaching ₹2,437.14 crore, up from ₹2,000.07 crore in the same quarter the previous year.

Standalone revenue from operations grew by 24.5% YoY, totaling ₹31,353.40 crore, compared to ₹25,182.82 crore the year before.
M&M sold 253,028 vehicles in the January-March 2025 quarter, marking an 18% increase from 215,280 units during the same period last year.

Positive Stock Trend Continues

M&M shares have remained strong, recording gains for four consecutive trading sessions. Following the earnings announcement on May 5, the stock closed 3.11% higher. Over the past year, M&M has experienced a remarkable 38% rise, reaching a 52-week high of ₹3,276.30 on February 10 and a 52-week low of ₹2,159.10 on May 13 last year.

Analyst Optimism: Is M&M a Good Investment?

Many brokerage firms have expressed optimism regarding M&M’s stock after the impressive Q4 results and positive growth forecasts.

Motilal Oswal Financial Services has reaffirmed a buy rating with a target price of ₹3,482, suggesting a potential upside of 15%. They believe M&M is in a strong position to excel across its core business areas, driven by robust rural recovery and new product launches in both the utility vehicle (UV) and tractor segments.
ICICI Securities has upgraded the stock’s rating to buy, increasing the target price from ₹3,200 to ₹3,500, citing M&M’s strong performance in UVs and the healthy outlook for its Farm Equipment Sector (FES).
Similarly, Kotak Institutional Equities maintains a buy rating with a target value of ₹3,500, anticipating M&M to outperform in both the tractor and automotive markets, fueled by successful new launches and strong brand recognition.

Strategic Insights for Investors

While M&M’s long-term growth prospects appear promising, some technical analysts advise caution.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, suggests that traders should consider taking some profits as the stock approaches the ₹3,100 level. He notes the emergence of a bearish shark pattern on the daily chart, indicating potential resistance in the ₹3,100–₹3,200 range and recommends looking for buying opportunities following any healthy pullbacks.

Conclusion

With its impressive fundamentals and strategic market positioning, Mahindra & Mahindra continues to draw investor interest. As the company navigates the challenges of the market, its strong performance in Q4 FY25 provides a solid foundation for sustained growth. Investors may want to weigh their options carefully in light of current market conditions and expert analyses.

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