Buy Mahindra and Mahindra; target of Rs 3326: Prabhudas Lilladher

Prabhudas Lilladher's research report on Mahindra and Mahindra

We met with Mahindra & Mahindra’s (MM IN) management to understand the outlook for its Automotive and Farm divisions. In the Automotive business, it remains on track to delivering mid-teen volume growth for FY25 and is confident of outpacing industry growth in UVs over the next 2 years. In Farm division, it aims to increase monthly dispatches in domestic as well as international markets, which shall aid in healthy growth in the upcoming years. We slightly cut our EBITDA/EPS estimates for FY26E by 6%/12% to factor in the initial impact of its EV business. However, the outlook of its UVs and Farm divisions remains healthy, hence we maintain our bullish view on MM’s growth prospects. Factoring this, we estimate its revenue/EBITDA/PAT to grow at a CAGR of 15%/20%/13.7% over FY24-27E.

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