Mahindra & Mahindra’s share price rose 4.5% to an intra-day high of Rs 3,159.70 on the National Stock Exchange. The upsurge in the stock price came after the company reported a 22% growth in its net profit for Q4FY25 and also declared a dividend of Rs 25.3 per equity share. The stock was the top gainer in the Nifty 50 and was near its all-time high of Rs 3,270.95.
Nomura on M&M
The brokerage house kept the rating unchanged at Buy, with a target price of Rs 3,779 from Rs 3,681 per equity share. M&M is the top automobile pick of Nomura as the company reported an industry-leading growth. Plus, the EV ramp-up was a key catalyst behind its Q4 numbers. With the strong new launch plan and capacity expansion, the brokerage house expects the company to continue driving industry-leading growth over the next few years.
“We expect MM’s SUV CAGR at 14% over FY25-27F (vs industry 5-6%). BEV will be a key driver of sales growth (~ 3k/7k p.m. over FY26-27F). We factor in tractor volume growth of 5% / 5% in FY26/27,” said Nomura.
Nuvama on M&M
The brokerage house Nuvama said that the company reported better margins in both the auto and tractor segments, aided by EBITDA, which came ahead of its expectations. Over FY25–27, it expects the auto segment’s revenue CAGR to be 16% on healthy demand for Thar, XUV 3XO, and XEV.9e along with a pipeline of new models. The farm segment’s revenue shall clock a 10% CAGR nurtured by share gains, benign policies, and robust exports. The brokerage has retained its Buy call on the stock with a target price of Rs 3,700 per equity share.
Motilal Oswal on M&M
The domestic brokerage house Motilal Oswal said that it believes the company is well-placed to outperform across its core businesses, led by a healthy recovery in rural, and new product launches in both UVs and tractors. “We estimate M&M to post a CAGR of 13% revenue, 13% EBITDA, and 18% net profit over FY25-27,” said Motilal Oswal. While the company has outperformed its own targets of earnings growth and RoE of 18% in each of FY24 and FY25, it remains committed to delivering 15-20% EPS growth and 18% ROE, ensuring sustained profitability and shareholder value. It also retained ‘Buy’ call on the stock, with a target price of Rs 3,482.
Jefferies on M&M
Another international brokerage house, Jefferies, has maintained its ‘Buy’ call on the stock. However, it trimmed the stock price slightly to Rs 4,000 from Rs 4,075 per equity share. M&M Q4 marks the delivery of the 12th consecutive quarter of double-digit EBITDA growth. Jefferies expects a 12% volume & 18% core earnings per share CAGR over FY25-28. It sees that there’s room for further re-rating with a strong growth outlook & improving franchise.
BofA on M&M
The brokerage house Bank of America retained stood strong with its Buy rating & hiked the target price to Rs 3,700 from Rs 3,385 per equity share. As the company’s battery electric vehicles have performed well, BofA sees a promising start for EVs and valuation scope to re-rate more. M&M stood out with SUV share gains, tractor upcycle, EV readiness & reasonable valuations.
M&M Q4FY25 results
The automobile giant reported a 22% jump in standalone net profit at Rs 2,437 crore for Q4FY25, compared with Rs 2,000 crore in the same period a year ago. Its revenue from operations grew 24% to Rs 31,609 crore in Q4FY25 as against Rs 25,434 crore in Q4FY24.