Nomura lifted its goal value on M&M to Rs 4,355 from Rs 4,066, implying a possible upside of 21.6% from Tuesday’s closing degree of Rs 3,581.55 on the BSE. Nuvama maintained its ‘Purchase’ name with a Rs 4,200 goal value, suggesting an upside of almost 17%.
Nomura stays bullish on progress momentum
Nomura, in its post-results notice, referred to as M&M its “high decide” within the auto sector, projecting “industry-leading progress to proceed” over the subsequent three years. The brokerage expects SUV quantity progress of 18%, 11%, and seven% over FY26–28, backed by upcoming launches throughout battery electrical, hybrid, and inside combustion engine fashions.The brokerage highlighted that the automaker’s Manufacturing-Linked Incentive (PLI) approval for battery electrical autos gives a “key strategic edge over friends.” Tractor quantity progress estimates had been additionally raised to 12% and 5% for FY26 and FY27, respectively. Nomura sees EBITDA margins rising to 14.4%–15.3% throughout FY26–28, with electrical car margins reaching double digits by FY28 as the complete portfolio comes beneath the PLI profit.
Nuvama sees sustained earnings momentum
Nuvama echoed related optimism, anticipating M&M to ship income and earnings CAGR of 15% and 19%, respectively, over FY25–28. “Auto phase income CAGR is predicted at 15% (FY25–28) on sturdy demand and new launches, and Farm phase CAGR at 13% pushed by market share positive factors and supportive insurance policies,” the brokerage mentioned.It added that the corporate’s return on invested capital (RoIC) is prone to stay above 60%, supported by regular margins in each its Auto and Farm divisions. Nuvama values M&M at 25x Sep-27E core EPS and assigns Rs 942 per share for subsidiaries and investments, sustaining its Purchase score.
Strong fundamentals throughout segments
M&M reported a 28% year-on-year rise in consolidated revenue after tax to Rs 3,673 crore for the July–September quarter, whereas income from operations climbed 21.7% to Rs 45,885 crore.
The automaker continued to dominate throughout key segments—holding a 25.7% share in SUVs, 53.2% in mild industrial autos, 43% in tractors, and 42.3% in electrical three-wheelers. The corporate’s annualised return on fairness stood at 19.4%.
The Auto phase reported complete quarterly volumes of two,62,000 models, up 13% year-on-year, with standalone PBIT rising 14% to Rs 2,281 crore. Within the Farm phase, PBIT surged 48% to Rs 1,684 crore, with margins enhancing by 220 foundation factors to 19.7%.
Mahindra Finance, the group’s monetary arm, recorded a forty five% soar in revenue after tax, whereas Tech Mahindra’s EBIT margin expanded by 250 foundation factors to 12.1%, contributing to a resilient consolidated efficiency throughout the Mahindra Group.
With Nomura and Nuvama each forecasting sustained progress, margin growth, and regular market share positive factors, Mahindra & Mahindra stays firmly on the radar of long-term buyers. The inventory’s current momentum, coupled with a possible 17–22% upside, alerts that M&M’s progress engine, pushed by SUVs, EVs, and tractors, should still have important mileage left.
Additionally learn | M&M Q2 Outcomes: PAT surges 28% YoY to Rs 3,673 crore, income jumps 22%
(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t signify the views of the Financial Instances)
