Mahindra & Mahindra (M&M) has recently experienced a significant boost in its share price, climbing 4.5% to reach an impressive intra-day high of ₹3,159.70 on the National Stock Exchange. This surge follows the company’s announcement of a 22% increase in net profit for the fourth quarter of FY25, alongside a dividend declaration of ₹25.3 per equity share. M&M’s stock emerged as the top performer in the Nifty 50 index and is nearing its record high of ₹3,270.95.

Analyst Insights on M&M’s Growth

Nomura’s Positive Outlook

Nomura has reiterated its Buy rating on M&M, adjusting its target price from ₹3,681 to ₹3,779 per share. The brokerage highlights M&M as its top pick in the automotive sector, driven by industry-leading growth figures. Their analysis points out that the company’s electric vehicle (EV) expansion has significantly contributed to its robust Q4 performance. With ambitious plans for new launches and capacity enhancements, Nomura anticipates that M&M will maintain its growth trajectory over the coming years.

• Expected SUV CAGR of 14% from FY25 to FY27, compared to the industry average of 5-6%.
• Projected battery electric vehicle (BEV) sales growth of approximately 3,000 to 7,000 units per month from FY26 to FY27.
• Anticipated tractor volume growth of 5% for FY26 and FY27.

Nuvama’s Margin Analysis

Nuvama has also recognized M&M’s performance, noting improved margins across both automotive and agricultural sectors, driven by better-than-expected EBITDA results. They forecast a 16% revenue CAGR for the auto segment from FY25 to FY27, thanks to strong demand for models like Thar, XUV 3XO, and XEV.9e. Furthermore, Nuvama projects a 10% CAGR for the farm segment, supported by market share gains and favorable policies. They have set a target price of ₹3,700 per share while maintaining a Buy recommendation.

Motilal Oswal’s Growth Projections

Motilal Oswal emphasizes that M&M is positioned to excel in its core sectors, bolstered by a recovery in rural markets and new product launches in both utility vehicles (UVs) and tractors. They project a CAGR of 13% for revenue and EBITDA, along with an 18% growth in net profit over FY25 to FY27. M&M has surpassed its own targets for earnings growth and return on equity (ROE), aiming for 15-20% EPS growth and an 18% ROE. The firm maintains a Buy rating with a target price of ₹3,482.

Jefferies and BofA’s Market Perspectives

Jefferies Maintains Confidence

Jefferies continues to endorse M&M with a Buy rating, albeit slightly reducing its target price from ₹4,075 to ₹4,000 per share. The firm notes that M&M has achieved its 12th consecutive quarter of double-digit EBITDA growth. Jefferies anticipates a 12% volume and 18% core earnings per share CAGR from FY25 to FY28, indicating potential for further re-rating given the company’s strong growth outlook.

BofA’s Strategic Positioning

Bank of America has affirmed its Buy rating for M&M and raised its target price from ₹3,385 to ₹3,700 per share. The brokerage highlights the strong performance of M&M’s battery electric vehicles as a promising sign for the future of EVs. BofA believes M&M’s gains in the SUV market, tractor upcycle, and readiness for EVs position the company for further valuation improvements.

M&M’s Impressive Q4FY25 Results

In its latest quarterly results, Mahindra & Mahindra reported a 22% increase in standalone net profit, reaching ₹2,437 crore for Q4FY25, compared to ₹2,000 crore during the same quarter last year. Revenue from operations surged 24%, totaling ₹31,609 crore in Q4FY25, compared to ₹25,434 crore in Q4FY24. This impressive performance underscores M&M’s strategic resilience and growth potential in a competitive market.

Stay informed on M&M’s journey as it continues to shape the future of the automotive and agricultural sectors. For deeper insights, explore more about M&M’s ongoing innovations and market strategies.