XUV 7XO, XEV 9S, 3XO EV: M&M share price target after 3 model launches

Motilal Oswal Financial Services (MOFSL) on Friday said the recent vehicle launches by Mahindra and Mahindra Ltd (M&M) has strengthened its near-term demand outlook, with the refreshed XUV 7XO, the XEV 9S electric SUV, and the electric variant of the XUV 3XO forming a healthy launch pipeline. The brokerage reiterated its 'Buy' rating on the stock with a target price of Rs 4,521, valued on a December 2027 sum-of-the-parts basis.

“This healthy launch pipeline should help sustain strong demand momentum going forward,” MOFSL said.

MOFSL said the XUV 7XO, a material refresh of the XUV700, offered multiple feature upgrades with only a marginal increase in cost. Key enhancements included best-in-class suspension for improved ride comfort, a three-screen display layout, ambient lighting options, enhanced advanced driver assistance systems, upgraded electronics and computing architecture, Dolby Vision with Dolby Atmos, a 16-speaker Harman Kardon audio system and improved seating quality.

The brokerage said introductory pricing was available for the first 40,000 customers and estimated that the XUV7 XO could add 2,000 to 3,000 incremental units to the monthly run rate of the XUV700.

MOFSL said M&M has launched the electric variant of the XUV700 under the name XEV 9S, priced between Rs 19.9 lakh and Rs 29.4 lakh ex showroom. While interior features were largely similar to the internal combustion engine variant, the XEV 9S included semi-active suspension that adapted to road conditions and an augmented reality heads-up display.

However, the brokerage said that given its higher price point, the XEV 9S is not expected to be a key growth driver for the company.

MOFSL said the company has also introduced the electric variant of the XUV 3XO, completing three launches over a short period. Along with the refreshed XUV 7XO and the XEV 9S, these launches were seen as supportive of sustained demand momentum.

Beyond these, MOFSL said Mahindra and Mahindra planned to launch two additional internal combustion engine variants in FY27, along with one more electric vehicle in the same fiscal year.

MOFSL said it expects M&M to deliver a 14 per cent utility vehicle volume compound annual growth rate over FY25 to FY28. The brokerage estimated revenue, Ebitda and profit after tax compound annual growth rates of about 19 per cent, 18 per cent and 21 per cent, respectively, over the same period.

“Given the company’s multiple long-term growth drivers, we reiterate our Buy rating,” MOFSL said, maintaining its target price of Rs 4,521.