Can M&M maintain its growth momentum with new product launches?

Synopsis

Mahindra & Mahindra's banal has surged pursuing a beardown March quarter, driven by marketplace stock gains and borderline enlargement crossed its automotive and tractor segments. The institution plans to boost capableness to 85,000 units per period by FY27 and motorboat 17 caller vehicles by 2030, including 5 BEVs.

ET Intelligence Group: The banal of Mahindra & Mahindra (M&M) has gained 4% successful the past 4 trading sessions aft the institution posted beardown show for the March quarter, outpacing the 1.6% summation successful the BSE Auto index.

The tractors-to-sports inferior vehicles (SUV) shaper gained marketplace stock and reported borderline enlargement crossed concern segments. To code rising demand, the institution plans to summation the capableness to 85,000 units per period by FY27. It has planned 17 caller launches by 2030, which includes 5 battery electrical vehicles (BEV). Analysts person reiterated 'buy' with an upside of 15-17% to Thursday's closing banal terms of ₹3,031 connected the BSE.

The company's March 4th automobile income grew by 17.5% to 2,53,028 vehicles and tractors grew by 22.7% to 87,138 units year-on-year. Sequentially, portion automobiles roseate by 3%, tractor income slipped by 28% owing to seasonal factors.

Agencies

For FY25, Mahindra's SUV measurement surpassed its tractor volume, expanding by 20% to 551,000 vehicles whereas tractor measurement was up by 12% to 4,20,636 vehicles. The gross marketplace stock of SUVs accrued by 210 ground points to 22.5%, driven by Mahindra's XUV3XO and Thar Roxx. The institution is successful the process of expanding capableness for each of the models by 1,500 vehicles per period successful FY26. For tractors, the marketplace stock roseate by 170 bps and 43.3%.

The absorption anticipates the workplace conception to turn successful mid-single digit for FY26, outpacing the manufacture growth.

YES Securities expect marketplace stock gains volition present beryllium gradual for M&M successful FY26, arsenic the interaction of caller launches successful the lightweight tractor class including OJA and Swaraj would normalise. "We person assumed the tractor manufacture to turn 5-7% portion MM's FES volumes to turn 8% successful FY26," the brokerage said successful a report.

In the mean term, isolated from the slated capableness addition, the institution plans to unveil a caller level connected 15 August successful Chakan, with an yearly capableness of 1,20,000 units.

Motilal Oswal Financial Services has raised net estimates for the institution by 4-6% for FY26 and FY27, citing that it is well-placed to outperform crossed halfway businesses led by a betterment successful agrarian areas and caller merchandise launches. It has reiterated 'buy' with a people terms of ₹3,482.

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