Shares of Mahindra and Mahindra surged 2 percent to Rs 3,119 in morning trade on October 7, bucking the overall mood of the market, after CLSA upgraded the counter to 'outperform' from 'sell' and raised the price target as it sees multiple growth triggers for the auto major.
With a price target of Rs 3,400, the analysts at the firm forecast an upside potential of 11 percent from the current market price of Rs 3,060. M&M shares have been the best performer on the Nifty this year, rallying a massive 76 percent.
The brokerage expects profitable SUV growth and rising return on equity (ROE) to drive a sustainable re-rating. M&M’s strong portfolio of utility vehicle (UV) brands provides superior pricing power, while tractors are showing resilience in market share and margins.
CLSA anticipates a revival in the domestic tractor industry from FY26, with favorable reservoir levels as a key driver. Structural improvements in SUV market share, product mix, and margins are expected to further boost average selling price (ASP) and profitability.
On Friday, Investec, Nomura, and Morgan Stanley reinforced their bullish stance on Mahindra & Mahindra (M&M) after the company reported 1.76 lakh bookings for the Thar ROXX in just 60 minutes, marking the highest first-day bookings for any model in the company's history.
Morgan Stanley pointed out that the success of the Thar ROXX could push the overall Thar franchise to 8,000–10,000 units per month. The Thar three-door has a run rate of 5,000 units per month. It also suggested that the SUV's performance could help M&M consolidate its position as the third-largest player in India's passenger vehicle market.
At about 9:20 am, shares of the company were trading at Rs 3,091, higher by 1 percent from the last close on the NSE.
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