Mahindra & Mahindra Q3 Review: Analysts Hike Target Price As Tractor Business Guidance Raised

Mahindra & Mahindra Ltd. stock got target price hikes after the company posted net profit growth, as demand for SUVs continued to deliver well.

Net profit of the Scorpio maker rose 19% year-on-year to Rs 2,964 crore in the quarter ended Dec. 31, as revenue increased 20% to Rs 30,538 crore. The performance came on the back of a surge in sales — quarterly sales rose 16% to 245,000 units. Of these, 142,000 units were SUVs.

After the company posted its earnings, the company got a price hike from three brokerages, driven by the visible demand of their tractor business.

Macquarie maintained its 'outperform' rating, after hiking the target price to Rs 3,643 from Rs 3,511 earlier. The brokerage called the third quarter a solid one, as M&M remains their top pick in India's auto sector.

The company's tractor demand and margin outlook positive has been the base for the hiked target price. Macquarie also remains optimistic on BEV traction.

The brokerage also notes that the underlying auto segment margin remains strong. The headline auto margin is set to see impact from the EV losses in financial year 2026.

Nomura also maintained its 'buy' rating, as they hiked target price to Rs 3,681 from Rs 3,664 per share. The brokerage noted that the Ebitda was in line with estimates in the third quarter.

The tractor guidance was raised as well, it said. The brokerage also counts on the BEV launch as the next major catalyst. M&M remains a top pick as it is set to see some movement in the electronic vehicle segment as well.

Goldman Sachs maintained 'buy' on M&M, as they hiked target price to Rs 3,800 from Rs 3,700 per share. The third quarter earnings that beat estimates was attributed to SUV Product cycle and the tractor guidance raise, according to the brokerage.

There is a demand visibility on M&M’s core SUV and tractor businesses, it noted. The brokerage also factored in the improving of EV demand and visibility.

Bank of America maintained its 'buy' rating on M&M, with a target price of Rs 3,650. The company's autos segment is going at a steady pace, according to the brokerage.

There is scope for capacity in the Internal Combustion Engines or ICE segment, BofA said. It expects EVs to add in.

While calling out the need to watch out the margin trajectory, it also notes that M&M's tractor business is on a fast track.

BofA also notes that the company's overseas farm needs some fix, despite all the upward movement that the company has been seeing across segments.