M&M shares hit all-time high as Goldman Sachs maintains 'buy' on robust prospects

M&M shares have rallied a whopping 71 percent since the start of the year.

Share of Mahindra and Mahindra rose over 2 percent to Rs 3,019 to a hit fresh record high in morning trade on September 23 after Goldman Sachs maintained its 'buy' recommendation on the counter and raised the target price as it sees more levers for upside.

With a price target of Rs 3,400, the brokerage anticipates an upside potential of 15 percent from the last close of Rs 2,951 on the National Stock Exchange (NSE). M&M shares have been the best performers on Nifty since the start of the year.

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The international brokerage highlights that the more affordable variants of the XUV700 are seen as driving profit growth, while the upcoming Battery Electric Vehicle (BEV) launches are expected to be profitable from day one. Validation of M&M’s Inglo EV platform is also improving. Additionally, early signs of recovery are becoming visible in rural markets, and the tractor market outlook is looking stronger as the company heads into the second half of FY25.

In a recent management interaction with BofA and Goldman Sachs, the SUV major highlighted it is observing early signs of improvement, although the situation is not yet as positive as in previous cycles. Looking ahead, M&M sees a more favourable outlook for the tractor market as it enters the second half of FY25.

On the export front, M&M has ambitious plans, beginning with the launch of Thar Roxx test drives in mid-September, which have garnered strong interest. The company is also set to expand its exports to markets including Australia, South Africa, Chile, and beyond, with a global pickup truck in the works.

M&M's management remains confident in its growth outlook for the second half of FY25, reaffirming a 5 percent year-on-year growth target for its tractor segment and mid to high teen growth for its SUV business.

At about 9:20 am, shares of the company were trading at Rs 2,998, higher by 1.7 percent from the last close on the NSE. M&M shares have rallied a whopping 71 percent since the start of the year.

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