Stocks to buy today: Shrikant Chouhan recommends M&M, Delhivery as top bets

Shrikant Chouhan of Kotak Securities recommends Mahindra & Mahindra and Delhivery as stocks to buy today. Check CMP, targets, support-resistance levels, and key growth triggers

Stocks to buy today | Shrikant Chouhan recommendations, Feb 3:

Mahindra & Mahindra (M&M) -  BUY

CMP – ₹3,455

FV – ₹4,350

Resistance – ₹3,600/3,750

Support – ₹3,350/3,200 

We expect M&M share price to sustain its growth momentum, driven by near-term tailwinds in the tractor segment, new product launches and export-led growth in the automotive division, and GST-related benefits supporting the LCV segment over the coming quarters. Domestic tractor industry has witnessed robust double-digit volume growth, driven by a normal monsoon, GST cut, healthy Kharif sowing and reservoir levels, and state subsidies in Maharashtra.  M&M remains the market leader in the tractor segment, with both the Swaraj and Mahindra brands maintaining strong momentum. While the company has guided for low double-digit Y-o-Y industry growth in FY26, we expect the industry to grow less then 15 per cent Y-o-Y in FY26. We expect M&M to outperform the industry, with strong volume growth in FY26.  M&M's SUV portfolio continues to exhibit robust retail growth, outperforming industry trends. We expect this momentum to persist, driven by new EV launches, upcoming XUV 700 refresh and new nameplate (potential launch in H2CY26E) and strong export growth from a lower base. The company has guided for low double-digit growth in the light commercial vehicle (LCV) segment, driven by GST cuts, which are expected to revive demand through improved affordability.  M&M continues to gain market share, supported by a diverse portfolio across the 1–2.5T and >3.5T segments. M&M has consistently maintained leadership in the LCV segment with less than 48 per cent market share since August 2025. We expect the LMM business volumes to grow at a CAGR of 15–20 per cent over FY25–27E, fueled by accelerated electrification of 3Ws and launch of the EV Jeeto, meeting the rising demand for last-mile delivery solutions.  M&M has seen a double-digit growth in LCV segment in Q3FY26, led by GST boost. For M&M, premiumization, operating leverage, and commodity hedges are expected to support profitability. Our fair value of M&M share price is ₹4,350 (BUY rating) is based on sum-of-the-parts methodology.

Delhivery – BUY

CMP – ₹440

FV – ₹570

Resistance – ₹460/475

Support – ₹425/400 

Delhivery delivered very strong growth and a strong margin print, which was slightly tepid in the context of the growth. The company shared several levers beyond pricing that can push up profitability and help reach 20-per cent plus RoIC over time.  The competitive environment may remain benign. Delhivery aims to continue to improve its service levels and launch new product offerings. It may continue to be the source of pricing pressure in the market and attempt dynamic pricing across key dimensions in such direction. Delhivery aims to double the current adjusted Ebitda margin to 11 per cent, reach 3X asset turns, reduce capex to 5 per cent of sales and maintain the current working capital levels of 15-days to deliver 25% RoIC. It is not relying on pricing moves in Express Parcel as much but on other levers—scale effects, lower claims, consolidation of nearby facilities, higher mix of SME/D2C pricing. In PTL, it expects pricing to play an important role, though combined by superior service levels, using agentic solutions to speed up paperwork, dynamically shifting flows to low-utilization nodes, benefits of shared infra with Express Parcel and better use of tech to automate docking of trucks.

 

Delhivery stands out among its peers, with its spread-out customer exposure and lower concentration of gig workers. It laid out its differentiations in deep engineering and technology capabilities and training versus 3PL. It continues to solve more intricate problems of route allocation and dynamic pricing in the mid-mile in contrast to other 3PLs focusing on solving relatively simpler problems of maximizing resource utilization in the last mile. On captives, it shared trends of higher outsourcing in the recent past in the context of underutilized capacities as proof of the difficulties captives faced during the peak festive season. In contrast, Delhivery delivered on its SLAs, with ~1.5X growth in Express Parcel shipments versus captives, along with a 23 per cent growth in PTL. Delhivery recently did a 12-minute, 12-km medical delivery through drone in UP, launched economy air parcel product and plans to launch new services in PTL (hub-to-hub, air PTL).      =====================  Disclaimer: Shrikant Chouhan is the head of equity research at Kotak Securities. Views expressed are his own.