Buy Mahindra and Mahindra; target of Rs 720: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal 's research report on Mahindra and Mahindra

Mahindra & Mahindra’s (MM) 1QFY21 earnings were driven by strong performance in the tractor business. Demand recovery was most prominent in tractors, which has led to supply constraints. While MM’s core business would recover faster, the focus on tightening capital allocation could act as a re-rating catalyst. Hence, we see twin levers of EPS growth and re-rating.

Outlook

We upgrade FY21/FY22E EPS by 9%/3% to reflect the volume upgrade in tractors and UVs, as well as the improving mix. M&M is one of the few Auto stocks trading at a good discount to LPA. Maintain Buy with TP of INR720.

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