M&M shares: Brokerages see up to 23% upside on strong sales, EV push

Mahindra & Mahindra Ltd (M&M) shares inched up 0.16 per cent on Friday, closing at Rs 3,012.40. Brokerages have maintained a 'Buy' rating on the stock, indicating a potential upside of up to 22.83 per cent from the current level. 

Nuvama Institutional Equities has reiterated a 'Buy' rating on M&M following a robust Q4FY25 earnings beat. "The beat was driven by better margins in both the automotive and tractor segments," the domestic brokerage noted.

"M&M continues to fire on all cylinders. A strong mix of core product performance and EV innovation underpins our positive view. The company's operational efficiency and disciplined capital allocation support its premium valuation," Nuvama added.

The broking firm has maintained its target price at Rs 3,700, citing strong operational performance, an encouraging product pipeline, and sustained return ratios.

Anand Rathi has initiated coverage on M&M with a 'Buy' rating, setting a target price of Rs 3,600, citing strong domestic market-share gains and robust growth across key segments.

M&M is poised for a solid performance in FY26, underpinned by market share gains across its core businesses — Passenger Vehicles (PVs), Commercial Vehicles (CVs), and tractors. According to the report, the company's focused strategy and new model launches are expected to drive these gains.

Anand Rathi expects M&M's overall volumes to grow at a 9 per cent CAGR (Compounded annual growth rate) over FY25–27. The brokerage also anticipates an 8 per cent growth in realisations, primarily due to a rising share of electric vehicles (EVs) in the product mix. EVs are expected to make up 8 per cent of sales in FY26 and increase to 12 per cent by FY27.

Separately, the Mahindra Group has surpassed a market capitalization of $50 billion (around Rs 4.15 lakh crore).