M&M stock speeds to new record high on XUV 3XO launch

Analysts at Investec retained their 'buy' call on M&M and shared a target price of Rs 2,200, implying an over 2 percent increase from the current level. They believe that the launch of XUV 3XO will help improve the company's share in the compact SUV space, thus strengthening its overall UV franchise.

"M&M remains our top pick due to its strong earnings momentum, driven by successful product launches," Investec analysts said.

The XUV 3XO will be available in petrol and diesel options and transmission options will include 6-speed manual, 6-speed automatic, and a 6-speed AMT. M&M will open online and offline orders from May 15 onwards and the deliveries are set to commence from May 26.

ALSO READ: M&M rolls out XUV 3XO compact SUV. Check price, availability, other details

The model will be rolled out from its Nashik facility, where its outgoing version (earlier called XUV 3OO) was made. The compact SUV offers a panoramic sunroof and level-2 ADAS, which includes features like adaptive cruise control, lane keep assist, and blind spot monitoring.

So far this year, the stock of M&M has rallied over 23 percent, outpacing a 4 percent gain in the benchmark Nifty 50 index.

For the January-March quarter, analysts at Prabhudas Lilladher projected M&M's revenue to grow by 8.1 percent on-year to Rs 24,390 crore, driven by 13.8 percent volume growth in the automotive division. However, the company's profit-after-tax (PAT) is likely to decline 4.3 percent YoY to Rs 1,032 crore in Q4FY24, they estimated.

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