Buy Mahindra and Mahindra; target of Rs 3687: Motilal Oswal

Motilal Oswal is bullish on Mahindra and Mahindra has recommended buy rating on the stock with a target price of Rs 3687 in its research report dated July 31, 2025.

Broker Research

July 31, 2025 / 14:40 IST

BUY

26 Aug, 2025 12:21

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Motilal Oswal's research report on Mahindra and Mahindra

Mahindra & Mahindra (MM)’s 1QFY26 PAT at INR34.4b was ahead of our estimate of INR30.7b due to higher other income even as EBITDA margin came in line. While the FES segment’s margin improved 140bp YoY to 19.8%, the auto segment’s margin remained steady at 8.9%, affected by the contract manufacturing margin for its e-SUVs. While MM has outperformed its own targets of earnings growth and RoE of 18%, management remains committed to delivering 15-20% EPS growth and 18% RoE. This ensures sustained profitability and shareholder value. Reiterate BUY with a TP of INR3,687 (based on Jun’27E SoTP).

Outlook

While MM has outperformed its own targets of earnings growth and RoE of 18% in FY24, management remains committed to delivering 15-20% EPS growth and 18% RoE. This ensures sustained profitability and shareholder value. Reiterate BUY with a TP of INR3,687 (based on Jun’27E SoTP).

For all recommendations report, click here