Mahindra & Mahindra Gets Anand Rathi's 'Buy' Initiation On Strong Market Share Gains

M&M plans to launch seven ICE SUVs (incl. two model upgrades), five BEVs and five LCVs (three ICE and two EVs) up till FY30. For CY26, it plans to launch one ICE SUV (7-seater), two ICE SUV upgrades, two BEV, one ICE LCV and one EV LCV. Thus, on average, around one ICE SUV, BEV and LCV per year until FY30. Anand Rathi believes company’s stratergy of differentiated and superior features to help drive success ahead..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.We are positive regarding Mahindra & Mahindra Ltd. due to its domestic market share gains across passenger vehicles, commercial vehicles and tractors. We expect volumes to grow at a 9% CAGR over FY25-27, driven by 12% in PVs (launches), 6% in tractors (on the favorable regional trend and launches), 6% in CVs (rising share of pick-ups) and 15% in exports (on the favourable base and launches). Realization growth would be notable at 8%, owing to a higher share of EV models (FY26e/27e mix at 8%/12%; value 2x higher than the average). We expect standalone + MEAL’s revenue to grow by a strong 18% CAGR over FY25-27. We, thus, initiate coverage on the stock with a Buy rating, and a sum-ofparts target price of Rs 3,600..Key risksSlower-than-expected domestic industry volume trends. Keener competition. Adverse commodity prices/forex rates. Gradual EV penetration. M&M future product expansion in PV segment is focussed more towards EV portfolio expansion. Slower market for EVs could limit growth for its EV volumes. Capital allocation discipline. M&M is expected to generate strong free cash flows of Rs 90 billion/ year. It is important to see the future allocation of the capital towards growth. Considering the diverse segments of the group, company may look to expand into new businesses ahead. Key would be balance investment strategy. Losses in overseas subsidiaries. Overseas auto and farm subsidiaries sustenance or increase of losses could impact the stock valuation multiple ahead. FY25 Ebit losses at Rs 7.8 billion..Click on the attachment to read the full report:.Sobha Can Rally 37% Says Motilal Oswal On Strong Growth Prospects.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mahindra & Mahindra Gets Anand Rathi's 'Buy' Initiation On Strong Market Share Gains

Anand Rathi believes M&M's stratergy of differentiated and superior features to help drive success ahead.

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