M&M: Stock analysts share target prices, key catalysts post solid Q4 results 

Mahindra & Mahindra (M&M) reported an industry-leading revenue growth in the March quarter and its margin was ahead of analyst estimates. The company management stayed optimistic about sustaining outperformance to the utility vehicle industry in FY26. Analysts see incremental growth for M&M, driven by the full-year benefit of launches, including the Thar Roxx and XUV 3XO, along with contributions from recently launched EVs.

Nomura India said M&M is its top OEM pick. pick. With the strong new launch plan and capacity expansion, it expects M&M to continue driving industry-leading growth over next few years. 

"We expect M&M’s SUV CAGR at 14 per cent over FY25-27F against industry's 5-6 per cent. BEV will be a key driver of sales growth. A rise in the BEV mix could lead to higher ASPs but lower margins. PLI approval for BEVs will give M&M a strategic advantage over peers (Pack one XEV 9E already approved). We factor in tractor volume growth of 5 per cent each in FY26/27F," Nomura India said.

The brokerage said EV ramp-up and new ICE platform launch in FY27 could be key catalysts for the stock. It finds the prevailing valuations 12.8 times FY27 EV/Ebitda attractive.

"While M&M has outperformed its own targets of earnings growth and RoE of 18 per cent in each of FY24 and FY25, it remains committed to delivering 15-20 per cent EPS growth and 18 per cent ROE, ensuring sustained profitability and shareholder value. Reiterate BUY with a target of Rs 3,482," MOFSL said.

Over FY25–27, the domestic brokerage Nuvama expects the M&M's auto segment to clock a revenue CAGR of 16 per cent on healthy demand for Thar, XUV 3XO and XEV.9e along with a pipeline of new models. 

The farm segment’s revenue may grow at 10 per cent CAGR nurtured by share gains, benign policies and robust exports, Nuvama said as it retained ‘Buy’ with an unchanged target of Rs 3,700 on M&M. 

Emkay Global maintained its 'ADD' rating  while revising up its target by 11 per cent to Rs 3,000 from Rs 2,700, saying the risk-reward is balanced for the stock.