Buy Mahindra and Mahindra; target of Rs 4122: Motilal Oswal

BUY

Motilal Oswal's research report on Mahindra and Mahindra

Mahindra & Mahindra (MM)’s 2QFY26 PAT at INR45b was above our estimate due to better-than-expected margins (both from auto and FES segments), as well as higher other income. While the FES segment margin improved 220bp YoY to 19.7%, the auto segment margin improved marginally to 9.2% (despite EV ramp-up). While MM has outperformed its own targets of earnings growth and RoE of 18% in the past, it remains committed to delivering 15-20% EPS growth and 18% RoE. These targets ensure sustained profitability and shareholder value. We reiterate our BUY rating with a TP of INR4,122 (based on Sep27E SoTP).

Outlook

While MM has outperformed its own targets of earnings growth and RoE of 18% in the past, it remains committed to delivering 15-20% EPS growth and 18% ROE, ensuring sustained profitability and shareholder value. Reiterate BUY with a TP of INR4,122 (based on Sep’27E SoTP).

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