Buy Mahindra and Mahindra; target of Rs 1490: Emkay Global Financial

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26 Aug, 2025 12:21

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Emkay Global Financial's research report on Mahindra and Mahindra

We attended M&M’s EV day, where the company re-iterated its future EV strategies. The recently showcased electric XUV400 model has been developed at an investment of Rs5- 6bn. The model features a superior range and acceleration in comparison to peers in the non-luxury segment. Bookings and dispatches are expected to commence in Q4FY23. Post XUV400 launch, four more electric models under XUV and BE brands, based on a dedicated platform (INGLO), are scheduled for launch over December 2024 to October 2026. Investments relating to the platform and model development are expected at an aggregate of Rs100bn over FY22-27. M&M will collaborate with Volkswagen for components such as electric drivetrain, battery system, and battery cells. We remain positive on M&M due to its sales upcycle across segments and a large order book in PVs (270,000+ units). We have raised our FY23-25E EPS estimates by 3-7%, factoring an increase in volume assumptions.

Outlook

We have built in FY22-25E revenue/earnings CAGRs at 23%/21%. We re-affirm Buy with a revised SOTP value of Rs1,490 (Rs1,390 earlier), based on 12x standalone Sep’24E EPS (DCF-based) and the value of subsidiaries/investments at Rs658/share.

More Info

At 16:01 hrs Mahindra and Mahindra was quoting at Rs 1,299.00, up Rs 2.00, or 0.15 percent.

It has touched an intraday high of Rs 1,309.70 and an intraday low of Rs 1,291.15.

It was trading with volumes of 181,172 shares, compared to its thirty day average of 196,055 shares, a decrease of -7.59 percent.

In the previous trading session, the share closed down 0.30 percent or Rs 3.85 at Rs 1,297.00.

The share touched its 52-week high Rs 1,365.90 and 52-week low Rs 671.00 on 09 September, 2022 and 08 March, 2022, respectively.

Currently, it is trading 4.9 percent below its 52-week high and 93.59 percent above its 52-week low.

Market capitalisation stands at Rs 161,490.71 crore.

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Mahindra & Mahindra - 130922 - emkay