Is Mahindra Betting On EVs At The Right Time? This Brokerage Says No

Mahindra & Mahindra Ltd.’s unveiling of its first electric SUVs—BE.6e and XEV.9e—comes at a time when the EV category is witnessing slow offtake, with penetration at low single-digit levels due to customer concerns over charging infrastructure and resale value, according to Emkay Global. 

However, both Emkay and Nuvama Institutional Equities agree that the SUVs feature impressive specifications, score over peers on features, and are competitively priced, making them notable entrants in the segment.

Nuvama has maintained a ‘buy’ rating on the stock, with a target price of Rs 3,700, stating that with introductory prices of Rs 18.9 lakh and Rs 21.9 lakh (ex-showroom), respectively, the Battery Electric Vehicles aim to undercut rivals in their segments.

The brokerage forecasts BEV volumes of 48,000 units in fiscal 2026, scaling to 96,000 units in fiscal 2027, and sees Mahindra achieving a 15% revenue CAGR over fiscal 2024-27 on the back of robust BEV penetration and strong Internal Combustion Engine SUV sales.

On the other hand, Emkay Global has a ‘reduce’ rating with a target price of Rs 2,700 per share, citing concerns over EV adoption and market saturation. While acknowledging the models’ strong specifications and affordability, it pointed to challenges such as inadequate charging infrastructure and slow EV uptake among customers.

Mahindra faces intensifying competition in the EV market, according to the brokerage. The company's valuation premium compared to peers like Maruti Suzuki India Ltd. and Hyundai Motor India Ltd. may limit upside potential.

Mahindra’s launch underscores its pivot from diesel to electric, leveraging the Volkswagen-backed INGLO architecture to ensure global-standard safety and performance. As part of its EV roadmap, Mahindra aims to launch seven BEVs by 2030, targeting markets like India, Europe, and Australia.

Shares of the company closed 1.98% lower at Rs 2,985.20 per share, compared to a 0.11% decline in the NSE Nifty 50. The stock has risen 90.62% year-to-date and 72.61% over the past 12 months.

Of the 41 analysts tracking M&M, 37 have a 'buy' rating on the stock, three recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 13.9%.