Buy Mahindra and Mahindra; target of Rs 3539: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Mahindra and Mahindra has recommended buy rating on the stock with a target price of Rs 3539 in its research report dated May 06, 2025.

Broker Research

May 06, 2025 / 11:36 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Mahindra and Mahindra

M&M’s Q4FY25 Standalone revenue grew by 24.5% YoY, coming in 2.3%/4.4% higher than PLe/consensus estimates. The growth in revenue was aided by strong volume growth in in Auto and Farm division as well as better mix in the automotive division led its realizations to increase by 6.2% YoY while Farm realizations remained flat, blended realization up by 4.4% YoY. Gross profit grew by 20.4% YoY while margin contracted by 89bps YoY. EBITDA grew by 42% YoY while margin expanded 184bps YoY, owing to lower staff cost and other expenses in proportion to sales as compared to the same period last year. Adj PAT (adjusting for loss in JV and subsidiaries) increased by 48.8% YoY.

Outlook

Factoring this, we estimate its revenue/EBITDA/PAT to grow at a CAGR of 12%/11%/10% over FY25-27E. We retain our ‘BUY’ rating with a TP of Rs3,539 (previous Rs3,218) valuing it at 27x on its Mar’27E core EPS and Rs229 for its EV business and Rs379 for its listed subsidiaries.

For all recommendations report, click here