Mahindra & Mahindra Ltd's share price surged over 3 percent on August 16 after leading brokerages Nomura and Morgan Stanley expressed confidence in the company's new launch, the Thar Roxx - a five-door variant of the popular off-roader - expected to significantly boost sales.
At 9.50 AM, M&M's shares were up 3 percent at Rs 2,826. M&M share has gained 50 percent in the past six months, a huge outperformance to the Nifty 50 which gained nearly 10 percent during the same time frame.
Nomura maintained its 'Buy' on M&M with a target of Rs 3,417, and expects Thar Roxx to 'redefine' the urban SUV landscape and see sales of 8,000-10,000 units per month. The initial response is expected to be overwhelming, Nomura said, with up to 50,000 bookings seen on the first day alone.
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Nomura, however, fears a potential cannibalisation of the Thar 3-door variant. The Thar family is likely to see a total sales of approximately 10,000 units per month by FY26, Nomura observed.
M&M aims to make Thar the number one SUV brand, implying sales of 15,000-18,000 units per month, the brokerage noted.
Morgan Stanley echoed this optimism, maintaining an 'Overweight' on M&M with a target of Rs 3,304. The firm expects the three- and five-door variants to collectively achieve monthly sales of 8,000-9,000 units and secure its position as the fastest-growing passenger vehicle (PV) company. Morgan Stanley is anticipating a significant boost in sales in the coming months, likely on strong festive demand.
The starting price for the base petrol variant of Thar Roxx is Rs 12.99 lakh, and the diesel version will be available from Rs 13.99 lakh onwards. M&M will facilitate test drives of Thar Roxx from September 14 onwards, and bookings will commence from October 3, with deliveries likely from Dussehra onwards (October 12).
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