M&M shares hit new high, soar 40% from April low; more upside ahead?

Mahindra & Mahindra (M&M) share price today

 

Mahindra & Mahindra (M&M) shares hit an all-time high of ₹3,302.90 today, gaining 1.3 per cent on the BSE in Wednesday's intraday trade, on a healthy business outlook.

 

The stock price of the automobile company surpassed its previous high of ₹3,276.30, which it had  touched on February 10, 2025. It has bounced back 40 per cent from its 52-week low level of ₹2,360.45, touched on April 7, 2025.

 

In the past one year, M&M shares have outperformed the market and the auto index by surging 17 per cent. In comparison, the BSE Sensex was up 2.4 per cent, while the BSE Auto index slipped 16 per cent during the same period.

 

M&M likely to continue outperforming industry growth

 

M&M's, recently, unveiled XUV 3XO and Thar Roxx have received a healthy response. The company will continue to maintain a robust launch pipeline in the long run, targeting seven ICE SUVs (two mid-cycle enhancements), five battery electric vehicles (BEVs), and five LCVs (two of which will be EVs) by 2030. Of this, in the calendar year 2026 (CY26), M&M targets to launch three ICE SUVs (two mid-cycle enhancements), two BEVs, and two LCVs (one of which will be EVs in <3.5T segment).

 

Driven by a strong order backlog and new launches, Motilal Oswal Financial Services expects M&M to continue outperforming industry growth in FY26. The brokerage firm said they have assumed M&M to post an 11 per cent volume compounded annual growth rate (CAGR) in passenger UVs over FY25-27E.

 

Meanwhile, backed by decades of market leadership, M&M is committed to transforming farming and enriching the lives dependent on it. "FY26 is expected to be a promising year for the farm sector driven by above average monsoon outlook, high reservoir levels and healthy cash flows," the company said in its FY25 annual report.

 

Farm sentiments are now positive, supported by a good kharif output; healthy reservoir levels; healthy Rabi sowing; and positive terms of trade for farmers, where output inflation is higher than input inflation. Considering these factors and the current demand momentum, management expects the tractor industry to continue posting high single-digit growth in FY26E.

 

Auto sector outlook

 

The Indian auto industry's long-term outlook remains promising, driven by stable macroeconomic conditions, proactive government policies, rising middle-class income, large youth population and focus on electric mobility. Key factors influencing FY26 demand are rising disposable income, tax cuts, falling inflation, cost of ownership, government spending and positive consumer sentiment. Furthermore, the government has introduced the 'PM E-DRIVE' scheme to expedite EV adoption and develop charging infrastructure, positioning India to become one of the largest EV markets by 2030.

 

The Indian tractor industry is expected to benefit from the government's budgetary focus on rural development and allied agricultural activities. Factors such as improved crop price realisation, better replacement and construction demand and indication of above-normal monsoon are likely to drive growth in domestic tractor sales.

 

Brokerages view on M&M

 

Motilal Oswal Financial Services believes M&M is well-placed to outperform across its core businesses, led by a healthy recovery in rural areas and new product launches in both UVs and tractors. The brokerage firm estimates M&M to post a CAGR of ~14 per cent, 13 per cent, and 16 per cent in revenue, Ebitda, and net profit over FY25-27E. Analysts at the brokerage reiterate their 'Buy' rating on M&M stock with a share price target of ₹3,643 (based on June '27E SoTP).

 

Those at BNP Paribas, meanwhile, saiod M&M's solid execution in UVs and tractors on both, product and profitability fronts, makes it a unique high-quality-solid earnings growth story.

 

"In SUV, its successive models have seen strong success, we see it delivering double-digit volume growth in FY26, aided by full-year sales contributions from its recent new launches (XUV3XO, Thar Roxx, XEV 9e, BE 6). Moreover, with three ICE SUVs, two BEVs and two LCVs model launches planned in CY26, we see this growth momentum sustaining in FY27," they said with an 'Outperform' rating and a target price of ₹3,600 per share.