Witnessing a continuous surge for the last three months, the share price of Mahindra and Mahindra (M&M) on Monday has touched a new all-time high of Rs 1094.9 per share on the BSE, after gaining by over 2 per cent intraday, outperforming the market on strong business outlook. 

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The stock has gained over 42 per cent in the last three months as compared to an 8.5 per cent fall in the S&P BSE Sensex. It also gained over 63 per cent from its 52-week low of Rs 671 per share that was hit on March 8, 2022. 

Indian OEMs such as M&M and Tata Motors have been able to woo the Indian consumer who is getting more conscious of the quality of vehicles being offered, Philip Capital said, adding that this can be witnessed from the relative success of vehicles with higher safety ratings.  

The domestic brokerage firm in its auto-update said that the investments made in R&D as well as developing/borrowing new platforms from affiliates (Ssangyong for M&M and JLR for Tata Motors). 

As a result, these OEMs have been able to change their perception and the consumers are now willing to spend big on these brands, Philip Capital also said in a note. Picking M&M as one of the best bets, it gives a Buy stance with a target price of 1260 per share, with an upside of over 15 per cent. 

Management remains focussed on creating a diversified EV portfolio with 17 new products (FY24 onwards) including LCVs/3Ws other than SUVs and the company is also open to value unlocking in the EV space by getting a strategic partner to invest, ICIC Securities said in its report.  

Global brokerage firm Morgan Stanley sees upside risks to forecasts for tractor volume, a key stock driver for M&M. It said SUV business turnaround and relatively cheap multiples keep the brokerage to maintain an Overweight stance with a target price of Rs 1145 per share (20 per cent upside).