M&M shares gain nearly 2% as Jefferies maintains 'buy' call, sees over 50% upside

M&M shares haven't had good start to the year having crashed over 11 percent year-to-date.

Shares of Mahindra & Mahindra rebounded in morning trade on February 24, rising nearly 2 percent to Rs 2,712, recovering from a sharp 6 percent drop in the previous session. The surge came after Jefferies reaffirmed its 'Buy' rating, setting a target price that signals significant upside from current levels.

With a price target of Rs 4,075, the international brokerage forecasts a staggering upside potential of 52.6 percent from the last close of Rs 2,669 on the National Stock Exchange. M&M shares saw their biggest single-day fall in nearly 7 months during the last session.

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Analysts at Jefferies view the recent decline in its stock as a buying opportunity. The brokerage finds M&M’s valuation attractive, noting that its core FY26 estimated price-to-earnings ratio of 20x supports an 18 percent EPS CAGR for FY25-27.

Jefferies also considers M&M a stronger investment case compared to Maruti Suzuki and Hyundai, citing its favourable industry demand tailwinds and increasing market share in both tractors and SUVs. Meanwhile, Maruti Suzuki and Hyundai continue to lose ground in the passenger vehicle segment.

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In other news, the company's newly launched electric sports utility vehicles have received a significant response, recording 30,179 bookings on the first day on February 16. The total booking value stands at Rs 8,472 crore (ex-showroom price). The split between the XEV 9e and BE 6 is 56 per cent and 44 per cent respectively, Mahindra & Mahindra said in an official statement. The two models are priced between Rs 18.9 lakh and Rs 30.5 lakh (ex-showroom).

The company said that the strong demand underscores the confidence customers have in Mahindra’s Unlimit India vision—delivering innovative, world-class electric SUVs that offer a distinctive blend of luxury, performance, and technology.

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At about 9:20 am, shares of the company were trading at Rs 2,700, higher by 1.1 percent from the last close on the NSE. M&M shares haven't had a positive start to the year having crashed over 11 percent year-to-date.

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