Mahindra & Mahindra shares rose for a second straight session on Friday after the automaker reported largely in-line June quarter earnings, with brokerages retaining a bullish stance on the stock, citing sustained utility vehicle market share gains, resilient tractor demand and a strong growth outlook across segments.

Shares of Mahindra & Mahindra Ltd. extended gains for a second consecutive session on Friday, emerging among top Nifty gainers, after the automaker reported largely in-line fiscal first quarter earnings. Global brokerages remained constructive on the stock, citing its leadership in utility vehicles, resilient tractor business and long-term growth prospects.

The stock was trading at Rs 3,387 in early trade, up 3.1 percent. The stock had ended 1.92 percent higher on Thursday after the company announced its fiscal first-quarter results. Despite the recent rebound, the stock remains down 12.4 percent so far this year, compared with a 7 percent decline in the Nifty 50. Mahindra & Mahindra commands a market capitalisation of about Rs 4.1 lakh crore.

CLSA upgraded Mahindra & Mahindra shares to High Conviction Outperform from Outperform and raised its target price to Rs 4,588 per share, implying an upside of around 40 percent from Thursday's closing price. The brokerage said the company's automotive EBIT margin was largely in line with expectations despite higher raw material costs.

It continues to view M&M as its top pick in the automobile sector, supported by sustained gains in utility vehicle market share, a resilient tractor outlook, strong traction in battery electric vehicles and ongoing capacity expansion. CLSA also said that its forecasts assume flat tractor volumes for the full year, implying more than a 6 percent decline during the remainder of FY27.

Nomura maintained its Buy rating on the stock with a target price of Rs 4,875 per share. The brokerage said the June-quarter margin came in below its expectations but expects profitability to recover through further price hikes. It also said the stock's valuations remain attractive at 12.4 times FY28 estimated EV/EBITDA and 16 times FY28 estimated earnings, excluding subsidiaries, while reiterating a strong growth outlook across the company's businesses.

Mahindra & Mahindra's June-quarter results were largely in line with analyst expectations. Standalone revenue rose 23 percent year-on-year to Rs 41,920 crore, marginally ahead of estimates, supported by a 21 percent increase in overall volumes and a 23 percent rise in automotive volumes.

Standalone net profit increased 6.8 percent from a year ago to Rs 3,685 crore. However, EBITDA margin contracted 210 basis points year-on-year to 12.2 percent from 14.3 percent, reflecting margin pressure during the quarter. On a sequential basis, overall volumes declined 7 percent, while automotive volumes fell 2 percent.