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Mahindra & Mahindra share price climbed nearly 5 per cent in intraday trade on Tuesday, May 6, a day after the company reported its March quarter (Q4) results. Mahindra & Mahindra (M&M) share price opened at ₹3,082.85 against its previous close of ₹3,021.40 and jumped 4.6 per cent to an intraday high of ₹3,159 in a weak market. Around 10:25 AM, M&M shares traded 2.81 per cent higher at ₹3,106.45. Equity benchmark Sensex was 0.33 per cent down at 80,531 at that time.

M&M shares jumped after the automobile company reported strong growth in its standalone net profit and revenue for Q4FY25.

M&M reported a 21.85 per cent year-on-year (YoY) jump in its Q4FY25 standalone net profit to ₹2,437.14 crore, compared to ₹2,000.07 crore in the same quarter last year.

Standalone revenue from operations grew by 24.5 per cent YoY to ₹31,353.40 crore from ₹25,182.82 crore. The company sold 2,53,028 units of vehicles in the January-March 2025 quarter, up 18 per cent from 2,15,280 units in the same quarter last year.

M&M shares have been in the green for the last four consecutive sessions. On May 5, when the company announced its Q4FY25 earnings, the company's shares settled 3.11 per cent higher.

Till May 5, the stock has jumped nearly 38 per cent over the last year, hitting a 52-week high of ₹3,276.30 on February 10 this year and a 52-week low of ₹2,159.10 on May 13 last year.

Several brokerage firms expressed their positive views about the stock after the company's strong Q4 numbers and healthy growth outlook.

Brokerage firm Motilal Oswal Financial Services maintained a buy call on the stock with a target price of ₹3,482, implying a 15 per cent upside potential.

Motilal believes M&M is well-placed to outperform across its core businesses, led by a healthy recovery in rural areas and new product launches across both the UVs and tractors segments.

Motilal pointed out while M&M has "outperformed its own targets of earnings growth and RoE of 18 per cent in each of FY24 and FY25, it remains committed to delivering 15-20 per cent EPS growth and 18 per cent RoE, ensuring sustained profitability and shareholder value."

"Given the sustained demand momentum in UVs and tractors, we have raised our earnings estimates by 4 per cent and 6 per cent for FY26 and FY27E, respectively. We estimate M&M to post a CAGR of nearly 13 per cent, 13 per cent and 18 per cent in revenue, EBITDA and PAT, respectively, over FY25-27E," said Motilal Oswal.

Brokerage firm ICICI Securities has upgraded the stock to a 'buy' from an 'add', and increased the target price to ₹3,500 from ₹3,200 earlier.

"We envisage M&M’s strong performance continuing, led by its robust UV portfolio and FES segment’s healthier outlook. We upgrade it to a buy, from an add, with a SoTP-based target price of ₹3,500 versus ₹3,200, implying 24 times FY27E core EPS. Change in the target price is led by an 8 per cent and 9 per cent increase in FY26E and FY27E EPS, respectively, to account for higher volume growth and better margin performance," ICICI Securities said.

Kotak Institutional Equities also maintained a buy with a fair value of ₹3,500.

Kotak expects M&M to continue to outperform industry growth across the tractor and automotive segments, including the domestic PV and CV segments, given successful newer launches and strong brand equity.

Kotak expects M&M's tractor segment to continue its uptrend, driven by higher reservoir levels and expectations of a normal monsoon.

"M&M continues to execute well by maintaining a leadership position in all three segments, which makes us constructive on the name," said Kotak.

While the stock looks poised for a healthy growth in the long term due to strong fundamentals, some technical experts suggest booking some profits at the current juncture.

"Mahindra & Mahindra has delivered an impressive nearly 30 per cent rally and is now approaching the ₹3,100 mark. A bearish shark pattern has emerged on the daily chart within the ₹3,100– ₹3,200 zone—an area that also aligns with previous swing highs," said Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers.

"This confluence suggests a potential resistance zone. Traders may consider booking partial profits in the ₹3,150– ₹3,200 range and look for buying opportunities on a healthy pullback," Patel said.

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stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.

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