M&M share price up 8% in 3 days; analysts upbeat on growth, see 49% upside

M&M share price rose for a third straight session on Wednesday. Analysts at Nomura and SBI Securities are bullish on the stock citing strong SUV demand, EV growth, and attractive valuations

M&M share price extended its uptrend into a third straight session on Wednesday as it rose 2.3 per cent on the BSE in the intraday trade today. Including today’s intraday gain, the auto stock has surged 8.4 per cent in three sessions. 

Analysts remain upbeat on M&M’s growth outlook as they see strong execution across segments, with continued market share gains. 

"M&M stock’s current valuation stands at ~14.4x FY28 core P/E, which is attractive in our view. Key catalysts on the upside are continued strength of SUV volumes, rising EV volumes and margins, demand incentives for four-wheeler electric vehicles (EVs), and IPO of Last Mile Mobility (LMM)," Nomura said on Wednesday.  The stock remains the brokerage's top auto OEM pick, supported by attractive valuation. 

 

Meanwhile, M&M shares climbed 2.29 per cent intraday and hit a high of ₹3,202 per share on the BSE. At 9:48 AM, the shares were up 1.7 per cent at ₹3,183.85 per share as against a 0.55 per cent (415 points) rise in the benchmark BSE Sensex index. 

From its 52-week low of ₹2,360.45 per share, M&M shares have jumped 32.6 per cent till Tuesday. But, they remain 18.4 per cent lower than their record high level of ₹3,840 per share, hit on January 5, 2026.  READ STOCK MARKET UPDATES TODAY LIVE

M&M's growth outlook

According to the management, M&M's passenger vehicle (PV) sales have seen sustained strength, rising nearly 19 per cent year-on-year (Y-o-Y) so far in FY26. The rise, M&M said, was driven by new launches and sustained SUV demand. 

Tractor demand, too, remains robust at ~23 per cent year-to-date in FY26. With strong demand, the management aims to expand capacity through FY27 for current models and, in FY28E, for its "NU IQ" platform. 

"Recent launches (7XO and 9S) have seen strong traction, evident in robust bookings and ramp-up of production, while GST cuts have driven premiumization across PVs and tractors, supporting realizations," Nomura noted. 

On the margin front, M&M said it hopes to manage commodity pressure in the near-term through hedging, pricing and favourable mix. 

Besides, the company said it has sufficient buffer for gas in the short term, and sees no material impact on the production. Some risk, however, persists via supplier disruptions in the overall ecosystem, it noted.

M&M's EV strategy

According to the company, its EV business remains Ebitda-positive, while it expects margins to be further supported from PLI benefit on XEV 9E and 9S from FY27E. The company aims to double its current annual EV volumes to drive Ebit breakeven. 

"Over the medium-term, Ebit/vehicle (in rupee terms) should be similar to ICE vehicles," M&M management said. 

Recently, a Parliamentary Standing Committee on Industry released a detailed review of India’s automotive and electric vehicle policy framework, PM E-DRIVE. 

Under the latest recommendations, the Committee as the government to focus on EV four-wheelers and aim to increase its penetration among users. Though the adoption has been gradually increasing, the report noted that it remains modest due to high upfront costs. 

It, thus, recommended introducing targeted consumer incentives for EV 4Ws to bridge the affordability gap. 

Besides, the Committee urged the government to revisit the EV charging-related subsidy structure and introduce greater support for private charging infrastructure. 

The aim is to address the limited support provided for chargers in private or commercial locations, which possibly discourages private sector participation in building charging networks.  READ | Ashish Kacholia's stock portfolio outperforms market thus far in March

Nomura view on M&M

Given the company's optimistic commentary, Nomura expects M&M to clock SUV volumes of 652,000 units (up 18 per cent) in FY26; 739,000 units (up 13 per cent) in FY27; and 814,000 units (up 10 per cent) in FY28. 

This would be driven by premiumisation and a strong model cycle, Nomura said. 

Further, the brokerage estimates tractor volume growth at 24 per cent, 5 per cent, and 5 per cent for FY26-28. 

"Our FY26-28F Ebitda margins estimates stand at 14.3 per cent, 14.9 per cent, and 15.1 per cent, respectively. These may face potential downside risks if commodity prices continue to rise," Nomura said with a 'Buy' rating and a share price target of ₹4,662.

SBI Securities on M&M outlook

According to analysts at SBI Securities, M&M enjoys a strong brand recall in the SUV segment. All the new launches over the last few years, such as the XUV 700, Thar Roxx, XUV 3XO, Scorpio N and Bolero Neo, have received encouraging response from customers. 

The Indian Passenger Vehicle (PV) industry, too, has pivoted towards SUVs which now account for ~60 per cent of the total PV volumes. The company, in this backdrop, has been consistently outperforming the domestic PV industry growth and its own internal guidance over the last few years, SBI Securities noted. 

"The launch of its two electric SUVs -- BE 6 and XEV 9E – has helped M&M ramp up its market share from 5 per cent to nearly 20 per cent now. The company has further launched a new 7 seater electric SUV – XEV 9S which should help the company gain further market share. Besides, it remains a market leader in the Farm equipment segment with a market share of 44 per cent in the domestic tractor industry," analysts at the brokerage said. 

At the current levels of around ₹3,200, the stock is trading at 25.6x/22.6x/20.3x FY26E/FY27E/FY28E consensus Bloomberg earnings. 

SBI Securities, too, recommends a 'Buy' on M&M stock with a share price target of ₹3,760.  READ | These 3 stocks delivered 100x returns in 6 years; what tech charts say? 

About M&M

Mahindra & Mahindra is a diversified automobile company in India with presence across SUVs, commercial vehicles, tractors, farm equipment such as harvesters & transplanters, and 3 wheelers for passenger and cargo movement. 

It holds stakes in other listed Mahindra group entities such as Tech Mahindra, M&M Financial Services, Mahindra Holidays & Resorts, Swaraj Engines, and Mahindra Lifespace Developers. 

Recently, M&M acquired a majority stake in SML Isuzu, a commercial vehicle OEM with am aim to tap the medium commercial vehicle segment. 

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