Brokerages remained constructive on automobile major Mahindra & Mahindra (M&M) after the company's March-quarter earnings, with most showing stronger-than-expected automotive performance, healthy average selling prices and a positive medium-term growth outlook.
The current market price of M&M is Rs 3,220.80 which implies upsides ranges from about 24% to nearly 39%, depending on the brokerage's target. M&M announced its January-March quarter results for fiscal 2025-26 (Q4FY26) reporting a surge of 53% in standalone net profit to Rs 3,737 crore, compared to Rs 2,437 crore in the corresponding period last year. The surge in profit was primarily driven by its auto and farm sectors.
ALSO READ: M&M Q4 Results: Net Profit Surges 53% To Rs 3,737 Crore, Revenue Up 26% YoY; Dividend Declared
Kotak Securities
Kotak Securities maintained its 'buy' call and raised the target price to Rs 4,050 from Rs 4,000, implying an upside of about 25.7% from the current market price. The brokerage said M&M delivered a better fourth quarter, helped by better-than-expected average selling prices, although this was partly offset by raw material headwinds. Kotak noted that, on a segment basis, tractor profitability was below expectations, while the automotive business outperformed. It expects M&M to continue to outpace industry growth in both tractors and commercial vehicles, while a strong product launch cycle through CY30E should support its leadership in the SUV segment. The brokerage added that M&M continues to execute strongly, maintaining leadership across all three key segments, and said the stock still trades at an inexpensive valuation.
Citi
Citi also retained its 'buy' rating and increased its target price to Rs 4,470 from Rs 4,230, implying an upside of about 38.8%. It said Q4 results were above estimates, driven by higher auto ASPs and better gross margins. The brokerage said management's outlook remains positive, with utility vehicle growth guidance in the mid-to-high teens and tractor growth guidance in the mid-single digits year-on-year. Citi has increased its estimates for tractor and UV volumes, though it flagged adverse monsoons as a potential risk. It also cautioned that lower margins may reflect possible cost pressures.
Jefferies
Jefferies maintained its 'buy' call but cut its target price to Rs 4,000 from Rs 4,500, still implying an upside of about 24.2%. The brokerage described the quarter as strong, though it flagged concerns around the tractor cycle. It said M&M delivered its 16th consecutive quarter of double-digit EBITDA growth. Jefferies also pointed to improving EV margins, easing concerns around CAFE norms, and said new SUV launches will restart in FY28. However, it cut FY27-28 earnings per share estimates by 3-5% and now expects 11% core EPS CAGR over FY26-28E, followed by 20% growth in FY29.
JP Morgan
JP Morgan maintained its 'overweight' stance and raised its target price to Rs 4,135 from Rs 3,980, suggesting an upside of about 28.4%. It said better-than-expected FY27 guidance should support the stock. The brokerage said its upgrade is driven mainly by better-than-expected SUV volumes, though it continues to assume margin headwinds across both businesses.
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