Buy Mahindra & Mahindra; target of Rs 3300: Motilal Oswal

Motilal Oswal's research report on Mahindra & Mahindra

Mahindra & Mahindra's (MM) annual report FY24 outlines its strategic focus on its journey to "Deliver Scale" across its businesses, categorized into three buckets. First, it aims to capitalize on market leadership in SUVs and tractors by expanding its market presence through customer-obsessed brands, pioneering technology leadership, and global reach. Second, the company is focusing on unlocking the full potential of Mahindra Finance and Tech Mahindra, recognizing their significant potential for value creation. Both businesses have unique strengths that position them to become leaders in their respective segments. Lastly, its ‘Growth Gems’ are expected to achieve a fivefold increase in scale and value over the next 5-7 years. It remains committed to delivering 15-20% EPS growth and 18% ROE, ensuring sustained profitability and shareholder value.

Outlook

We maintain our BUY rating with a revised TP of INR3,300 (based on Jun’26E SOTP).