Mahindra & Mahindra (M&M) is firing on all cylinders and the spotlight is on the M&M share price. This time it is not because of a new SUV launch. Three major brokerages – Motilal Oswal, Nuvama and Jefferies have all taken the same bullish call on this key Mahindra group stock auto. These brokerages reports indicated a strong growth over the next few years.
While their targets vary, the view was common among the three brokerages that M&M could deliver strong gains, with upside potential ranging from roughly 15% to 21%, a per their reports.
Let’s take a look at the key reasons behind this call –
Motilal Oswal on M&M
The domestic brokerage house, Motilal Oswal has reiterated its ‘Buy’ call on M&M with a target price of Rs 4,275. This translates into nearly 15% upside from current levels.
According to the brokerage report, the company has laid out a clear long-term plan for all major businesses, including sport utility vehicles (SUVs), light commercial vehicles (LCVs) and its farm segment.
Motilal Oswal highlighted that M&M expects 8x growth in SUVs and LCVs between financial year 2020 and financial year 2030, and 3x revenue growth in the farm business over the same period.
The brokerage noted that the company’s next phase of launches including the XEV 9S electric SUV and new models on its NU-IQ platform will play a major role in this expansion.
As per the brokerage report, “MM’s long-term growth targets in each business segment clearly highlight the firm’s visibility in the potential of these key segments going ahead.”
Nuvama on M&M
Nuvama has also given M&M a ‘Buy’ rating with a target price of Rs 4,200, calling for an upside of about 14.6% from the current market price.
According to the brokerage report, Nuvama expects 15% growth in revenue and 19% growth in core earnings during financial years 2025 to 2028, supported by steady demand for SUVs, new model launches and a stronger global presence.
It added, “We estimate revenue would expand at a 15% CAGR over FY25–28 for the automotive segment led by healthy demand for SUVs along with a pipeline of new models.”
The brokerage also sees momentum in tractors and farm machinery, supported by stable government policies, new platforms like Oja and Naya Swaraj, and export opportunities in Brazil, North America and ASEAN (Association of Southeast Asian Nations).
The report noted, “The farm segment’s revenue shall increase at a 13% CAGR over FY25-28 owing to market share gains and benign government policies for farmers.”
Jefferies on M&M
Global brokerage Jefferies has given a target price of Rs 4,500. This pointed to a 21% upside from current levels.
According to the brokerage report, the firm is upbeat about M&M’s strong product pipeline in both electric and internal combustion engine (ICE) SUVs. Jefferies believes that the company’s bets on export markets, low-cost mobility, aerospace and hospitality could unlock significant long-term value.
The brokerage house in its report noted, “MM reiterated its strong launch pipeline for SUVs across EVs and ICE, and is working towards expanding exports.”
