Buy Mahindra and Mahindra; target of Rs 3482: Motilal Oswal

Motilal Oswal's research report on Mahindra and Mahindra

MM reported a better-than-expected operating performance in 4QFY25, led by a strong margin beat in the FES segment (at 19.4% vs 17.3% estimated). The QoQ margin improvement was particularly commendable as it came in a seasonally weak quarter. Auto segment margins, adjusted for contract manufacturing at MEAL, came in at 10% (+30bp QoQ).

Outlook

Given the sustained demand momentum in UVs and tractors, we have raised our earnings estimates by 4%/6% for FY26/FY27E. Reiterate BUY with a TP of INR3,482 (based on FY27E SOTP).

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