Buy Mahindra and Mahindra; target of Rs 960: JM Financial

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26 Aug, 2025 12:21

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JM Financial's research report on Mahindra and Mahindra

On 26 Jun’18, we attended M&M’s Farm Equipment Sector (FES) day, highlighting the upside to Mahindra’s rise strategy, which would be driven by an increase in a) the domestic tractor market share, b) increase in revenue share from global operations, and c) increase in revenue from the farm machinery category. The company intends to increase its domestic tractor market share from 43% to 50%, supported by the new affordable “Trackstar” brand, mechanisation of the horticulture segment and growth in the high horsepower (hp) segment. The company views its current global market share of <2%, favourably and as an opportunity to increase its revenue from global operations from 37% currently to 50% in the next 2-3 years, supported by its operations in the Americas, Japan and Turkey. Low penetration of farm equipment in India is likely to boost sales of M&M’s harvesters and rice transplanters, which are developed using technological support from its global subsidiaries.

Outlook
Driven by these strategies, cost-saving measures (Kuber), total productive maintenance (TPM), Poka-Yoke and virtual reality as well as cost synergies across subsidiaries, the company has guided for improvement in margins and maximisation of ROCE.
For all recommendations report, click here

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