Buy Mahindra and Mahindra; target of Rs 3600: Anand Rathi

Anand Rathi's research report on Mahindra and Mahindra

We are positive regarding Mahindra & Mahindra (M&M) due to its domestic market share gains across PVs, CVs and tractors. We expect volumes to grow at a 9% CAGR over FY25-27, driven by 12% in PVs (launches), 6% in tractors (on the favourable regional trend and launches), 6% in CVs (rising share of pick-ups) and 15% in exports (on the favourable base and launches). Realization growth would be notable at 8%, owing to a higher share of EV models (FY26e/27e mix at 8%/12%; value 2x higher than the average).

Outlook

We expect standalone + MEAL’s revenue to grow by a strong 18% CAGR over FY25-27. We, thus, initiate coverage on the stock with a Buy rating, and a sum-ofparts TP of Rs3,600.