Nomura maintains 'Buy' on M&M, identifies the automaker as its top OEM pick

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Global brokerage firm Nomura has reiterated its bullish stance on Mahindra & Mahindra (M&M) stock, maintaining a Buy rating on the stock and calling it its “top pick” in the original equipment manufacturer (OEM) sector. 

 

The brokerage has valued the automaker at 16x EV/Ebitda on FY28F Ebitda, arriving at a sum-of-the-parts (SOTP) based target price of ₹4,355, compared with the current valuation of 13x FY28F EV/Ebitda.

 

M&M, Nomura believes, is well-positioned to take electric vehicles (EVs) mainstream in the 7-seater segment. “Mahindra remains our top OEM pick. The new XEV 9S has surprised us with a good combination of features and pricing,” the brokerage said. It has factored in monthly sales of 3,000–4,000 units for the XEV 9S, while stating that at the current price point, sales could exceed 5,000 units per month.

 

The brokerage expects M&M’s SUV volumes to grow faster than the industry over the next three financial years. It has forecast SUV growth of 18 per cent / 11 per cent / 7 per cent over FY26–28F, translating into monthly volumes of 54,000 / 60,000 / 65,000 units, respectively. This includes expected battery electric vehicle (BEV) sales of 4,400 / 7,400 / 7,900 units per month in FY26 / FY27 / FY28F.  ALSO READ | Why is JM Financial upbeat on Belrise Industries? Starts coverage with Buy

XEV 9S launched at disruptive pricing

Mahindra launched the new 7-seater electric XEV 9S on 27 November 2025 at an introductory price of ₹19.95 lakh. Bookings will open on 14 January 2026, with deliveries beginning on 23 January 2026. Nomura noted that the model has been priced far more attractively than its expectations of ₹23–31 lakh.

 

The XEV 9S is built on the INGLO platform and powered by the MAIA system. The SUV is 4.73 metres long and comes in six variants. It features LFP battery packs of 59 kWh, 70 kWh and 79 kWh, offering real-world ranges of 521 km, 600 km and 679 km, respectively. Mahindra is offering a lifetime battery warranty for the first owner and a 10-year / 200,000-km warranty for the second owner.

 

The model is equipped with a Coast-to-Coast 12.3-inch triple-screen setup, a 16-speaker Harman Kardon system with Dolby Atmos, and support for additional BYOD screens for second-row passengers. It supports 20–80 per cent fast charging in 20 minutes with a 180 kW DC charger. Other features include ADAS Level 2+, Autopark, 12 ultrasonic sensors, five radars, one camera, and a Powered Boss mode with a sliding and ventilated second-row seat.  ALSO READ | India IT sector nearing FY27 revival; AI ramp-up to be key, says Nomura

BE6 Formula E edition introduced

Mahindra has also launched the BE6 Formula E edition, which comes with additional features and cosmetic upgrades over the standard model. Bookings will open on 14 January 2026, and deliveries will begin on 14 February 2026. The special edition will be offered in two variants, with prices starting at ₹23.69 lakh. 

(Disclaimer: Target price and stock outlook has been suggested by Nomura. Views expressed are their own.)