Posted on February 24, 2025, by Niftynews
Mahindra and Mahindra share price has experienced a sharp decline over the past two weeks, but analysts remain optimistic, projecting a potential upside of up to 53%. Following a significant drop from its 52-week high, M&M share price continues to attract attention from analysts who see the stock as undervalued and poised for recovery in the medium to long term.
Recent Stock Correction and Analyst Sentiment
The recent correction in M&M share price follows a period of steep losses, with the stock dropping by 9% last week alone. This decline has been attributed to concerns about Tesla’s potential entry into the Indian market and its possible impact on Mahindra and Mahindra share price. Despite these concerns, analysts from prominent brokerages like Goldman Sachs, Bernstein, and Jefferies have reaffirmed their positive outlooks for M&M, with each projecting significant upside potential for the stock.
Bernstein analysts have set a price target of ₹3,650 per share, implying a potential upside of 37% from Mahindra and Mahindra share price‘s previous closing price. They also noted that while Tesla’s entry into India may create long-term challenges, it is unlikely to have an immediate or substantial impact on M&M’s share price in the near term.
Jefferies, with a “buy” rating, projects a price target of ₹4,075 per share, representing a 53% upside. The firm remains bullish on the stock, pointing out that M&M’s impressive orders for electric vehicles (EVs) and its strong growth potential in the Indian market will likely offset any short-term impacts from Tesla’s potential entry.
M&M’s Long-Term Growth Prospects: EV Orders and Market Position
Analysts are particularly optimistic about M&M’s positioning in the electric vehicle (EV) market, with the company recently securing 30,000 EV orders. These orders account for 30% of India’s total EV sales for 2024, a promising figure that positions M&M well for growth in this rapidly expanding sector.
Jefferies also highlighted M&M favorable price-to-earnings (P/E) ratio of 20 times for the fiscal year 2026. This makes Mahindra and Mahindra share price attractive, given the expected 18% compound annual growth rate (CAGR) in earnings per share (EPS) for the period between 2025 and 2027.
Goldman Sachs Highlights Discounted Valuation
Goldman Sachs, another major player in stock analysis, has a “buy” rating for Mahindra and Mahindra share price with a price target of ₹3,800 per share, indicating a potential upside of 43%. The brokerage points out that the stock’s current valuation reflects a significant discount, partly due to the market’s concerns about Tesla’s India entry.
According to Goldman Sachs, M&M shares are currently trading at a 15% discount to their peers in the automotive segment, particularly compared to Maruti Suzuki, which is considered M&M‘s closest competitor. Goldman Sachs noted that this discount presents an attractive opportunity for investors, especially given M&M’s long-term growth prospects and strong fundamentals.
Stock Performance: M&M’s Recent Decline and Recovery
As of February 24, 2025, M&M share price has been in the red for 10 out of the last 11 trading sessions. The stock ended the previous Friday’s session 6.2% lower at ₹2,663.50. However, on Monday, the stock began to recover, with a slight dip of 1.4% early in the session before making a strong comeback, hitting an intraday high of ₹2,712.45.
Despite the recent turbulence, analysts continue to recommend a “buy” stance on Mahindra share price, given the company’s solid market position and potential for future growth in the EV sector and other automotive ventures.
Past Performance and Resilience in Stock Corrections
Over the last decade, M&M share price has demonstrated resilience following stock price corrections. In five instances, the stock has seen a rebound following 15% corrections from peak prices, returning a median of 23% and 26% over 12 and 24 months, respectively. This historical performance has bolstered analyst confidence that Mahindra and Mahindra share price will recover from the current dip.
Mahindra and Mahindra’s Market Outlook and Expert Recommendations
Out of the 40 analysts covering Mahindra and Mahindra share price, 37 have given a “buy” rating, while only two analysts have a “hold” recommendation, and one has issued a “sell” call. This overwhelming consensus from analysts underscores the positive outlook for the stock despite the short-term market fluctuations.
As M&M continues to focus on innovation and expansion, especially in the electric vehicle space, the company’s long-term potential remains strong. Analysts believe that the recent correction offers an attractive entry point for investors looking to capitalize on future growth.
For more on the Indian automotive sector and stock performance, check out this article on the rise of electric vehicles in India.
Conclusion: M&M Shares Present a Compelling Investment Opportunity
Despite recent turbulence and concerns regarding Tesla’s potential entry into the Indian market, Mahindra and Mahindra share price continues to offer substantial upside potential. With a strong market presence, growing EV orders, and a history of bouncing back from corrections, M&M share price remains an attractive long-term investment. Analysts continue to recommend holding or buying M&M stock, expecting solid returns in the coming years.
