Mahindra & Mahindra: Motilal Oswal Reiterates BUY, Targets Rs 4521
Overview
Motilal Oswal initiated a BUY recommendation on Mahindra and Mahindra (MM), setting a target price of ₹4,521. The brokerage firm highlighted the company's strong launch pipeline, including upgraded XUV7XO and XE9S models, expected to drive robust demand and a significant increase in UV volumes through fiscal year 2028.
Motilal Oswal Bullish on Mahindra & Mahindra
Motilal Oswal has reiterated its BUY rating on Mahindra and Mahindra (MM), setting a target price of ₹4,521. The brokerage's conviction stems from the automotive giant's promising new product launches and a healthy demand outlook.
Enhanced Vehicle Offerings
The firm's analysts recently tested the XUV7XO and XE9S models, noting significant upgrades. The XUV7XO boasts best-in-class suspensions, a three-screen display, advanced ADAS features, and an upgraded 16-speaker Harman Kardon audio system with Dolby Vision and Atmos. These enhancements are projected to add 2,000-3,000 units to the XUV700's monthly sales run-rate. The XE9S variant features semi-active suspension and an AR Heads-up Display, building on its ICE counterpart's interior design.
Future Growth Pipeline
Mahindra and Mahindra is strategically expanding its portfolio, with plans to introduce two more internal combustion engine (ICE) variants and one electric vehicle (EV) in fiscal year 2027. This robust launch pipeline is expected to sustain strong demand momentum and support the company's market position.
Financial Projections and Valuation
Motilal Oswal forecasts Mahindra and Mahindra to achieve a 14% compound annual growth rate (CAGR) in utility vehicle (UV) volumes between FY25 and FY28. Overall, the brokerage estimates revenue, EBITDA, and profit after tax (PAT) to grow at CAGRs of approximately 19%, 18%, and 21%, respectively, over the same period. The target price of ₹4,521 is based on a Sum of the Parts (SoTP) valuation as of December 2027.
