Shares of Mahindra & Mahindra Ltd (M&M) advanced for the third consecutive trading session on Friday, climbing around 2% intraday to ₹3,160 on BSE. The stock has staged a remarkable 34% recovery from its 52‑week low of ₹2,360.45 on April 7, as ultra-strong volumes and upbeat business drivers lift sentiment.
Impressive Recovery Since April Lows
- M&M has surged 34% from April’s bottom, nearing its all-time high of ₹3,276.30 hit on February 10, 2025.
- Its outperformance is notable in June, with a 6% rise vs. <1% gain in Sensex and Auto Index.
- Today’s uptick continues a three-day winning streak (+5% gains over this span).
Factors Driving the Upside
1. Robust Volume Growth Across Business Segments
In May, M&M recorded a 17.3% YoY increase in total auto sales (84,110 units), with SUVs gaining 21.3% (52,431 units) and tractors delivering 9.5% growth at 40,643 units. Strong domestic tractor volumes, in particular, reflect positive agricultural sentiment bolstered by expected above-normal monsoon, MSP hikes, and ample reservoir levels.
2. Q4FY25 Earnings Beat, Dividend Boost
The company reported a 22% YoY jump in Q4 net profit, supported by surging tractor and SUV sales, and declared a ₹25.30 per share dividend, lifting margins and investor optimism.
3. Electric Vehicle (EV) Momentum & Growth Drivers
M&M’s electric vehicle ramp-up gained traction in Q4, with a bullish outlook on upcoming EV launches and SUV pipeline across product segments. Brokerages such as Nomura, Nuvama, Jefferies, and BofA are upbeat, projecting 14% SUV CAGR, robust profitability, and upgraded target prices between ₹3,482–₹4,000+.
4. Aernnova/Airbus Deal
M&M’s subsidiary, Mahindra Aerostructures, signed a $300 million deal with Aernnova Group for aerospace component manufacturing, enhancing investor confidence in its diversification strategy.
Valuation Snapshot and Technical Outlook
- Current price: ~₹3,160
- TTM P/E: ~23× (vs auto sector average ~21.8×)
- Technical View: The stock has reclaimed key averages and is approaching close to its ₹3,276 high. Sustained volumes point to bullish momentum.
What’s Next? Watch These Triggers
| Catalyst | Description |
|---|---|
| Monsoon Data | Early “above-normal” forecasts bode well for tractor demand and rural sentiment |
| Q1FY26 Volume Releases | Continued growth in SUV and tractor segments could validate current optimism |
| EV Expansion Plans | Market response to upcoming EV models and future timelines |
| Analyst Ratings/MTPs | With target prices ranging ₹3,482–₹4,000+, further upgrades could drive momentum |
Conclusion
M&M’s solid 34% rebound is both earnings-driven and sentiment-fueled, reflecting broad-based strength in SUVs, rural-driven tractor demand, EV pipeline optimism, and strategic diversification. With strong valuation, favorable business tailwinds, and institutional uplift, it remains a stock to watch closely.
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