M&M gains as foreign broker maintains 'overweight' stance

Mahindra & Mahindra rose 2.05% to Rs 3148.10 after a foreign broker maintained its 'overweight' rating on the stock with target price of Rs 3336.

The brokerage cited M&M's strong growth trajectory, anticipating it to remain the fastest-growing passenger vehicle (PV) company in 2025. The broker highlighted that the announcement of the company's electric vehicle (EV) order book as a key catalyst for future growth.

Further, the brokerage expects M&M to continue delivering robust year-over-year (YoY) EBITDA growth in the third quarter. This growth is attributed to sustained volume growth in utility vehicles (UVs) and a significant increase in tractor sales. The brokerage believes that continued volume growth and market share gains will support a higher valuation for M&M's automotive business.

 

The Mahindra Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

On a consolidated basis, the company's net profit jumped 35.05% to Rs 3,170.72 crore on a 10.13% rise in income from operations to Rs 37,923.74 crore in Q2 FY25 over Q2 FY24.

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