M&M's Thar ROXX bookings prompt bullish brokerage calls

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26 Aug, 2025 12:21

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Brokerages Investec, Nomura, and Morgan Stanley reinforced their bullish stance on Mahindra & Mahindra (M&M) after the company reported 1.76 lakh bookings for the Thar ROXX in just 60 minutes, marking the highest first-day bookings for any model in the company's history.

In the previous session, M&M's shares closed nearly 1 percent lower at Rs 3,137. The stock has delivered a stellar performance on a year-to-date (YTD) basis, surging by 84 percent. In comparison, the Nifty 50 gained only 16 percent during the same period.

Investec reiterated its 'Buy' rating with a target price of Rs 3,220, noting that the launch strengthens M&M's SUV franchise. The brokerage highlighted that the Thar ROXX surpassed all previous booking milestones, with 176,000 units reserved within the first hour. It also emphasised M&M's attractive valuation, trading at 28x FY26E EPS. The brokerage expects M&M's EBITDA and ROE to grow at a CAGR of 20 percent and 22 percent over FY24-26.

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Morgan Stanley echoed the optimism, maintaining its 'Overweight' rating and setting a target price of Rs 3,304. The firm pointed out that the success of the Thar ROXX could push the overall Thar franchise to 8,000–10,000 units per month. Currently, the Thar three-door has a run rate of 5,000 units per month. It also suggested that the SUV's performance could help M&M consolidate its position as the third-largest player in India's passenger vehicle market.

Investec and Morgan Stanley's target price for M&M indicates an upside of 2.6 percent and 5.3 percent, respectively.

Also Read | Mahindra Thar ROXX clocks 1.76 lakh bookings in 60 minutes, deliveries from Dussehra

Thar ROXX, the 5-door version of the popular Thar SUV is available with petrol and diesel variants, starting at a competitive price of Rs 12.99 lakh. Both options are available with either a six-speed manual or automatic transmission. With deliveries starting from Dussehra on October 12, M&M has assured customers of timely delivery updates in a phased manner.

During September, M&M recorded a 24 percent YoY growth in SUV sales, crossing 51,000 units. Export figures were equally strong, rising by 25 percent YoY to 3,027 units in September.

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