The shares of the Large-Cap company specializing in a diverse range of industries, notably automotive, where it’s a leader in SUVs and utility vehicles, and farm equipment, are in focus following the Analyst’s View on the stock post their Q2 results.
With a market capitalization of Rs. 4,49,666.24 crores on Thursday, the shares of Mahindra & Mahindra Ltd rose upto 2.6 percent, making a high of Rs. 3674.90 per share compared to its previous closing price of Rs. 3581.55 per share.
What Happened
Mahindra & Mahindra Ltd is one of the most diversified automobile company, which specializes in a diverse range of industries, notably automotive, where it’s a leader in SUVs and utility vehicles, and farm equipment is in focus following the Analyst’s View on the stock post their Q2 results.
Its Revenue from operations rose by 21.5 percent YoY from Rs. 37,924 Crores in Q2FY25 to Rs. 46,106 Crores in Q2FY26, and it rose by 1.2 percent QoQ from Rs. 45,529 Crores in Q1FY26 to Rs. 46,106 Crores in Q2FY26.
Its Net Profit YoY rose by 18 percent from Rs. 3,361 Crores in Q2FY25 to Rs. 3,964 Crores in Q2FY26, and it declined by 9.4 percent QoQ from Rs. 4,377 Crores in Q1FY26 to Rs. 3,964 Crores in Q2FY26.
The earnings per share (EPS) for the quarterly period stood at Rs. 29.54 compared to Rs. 32.84 in the previous quarter.
Analyst’s View post Results
Mahindra & Mahindra Ltd (M&M) shares gained on Thursday, after the automaker reported strong earnings for the September quarter, beating Street estimates on most parameters. Analysts remain bullish on the stock, citing robust performance in both its auto and farm segments, along with improving margins.
Jefferies
Jefferies reiterated its “buy” rating on Mahindra & Mahindra (M&M) and raised the target price to Rs 4,300 per share, noting that M&M has now posted 14 consecutive quarters of double-digit EBITDA growth.
The company has also raised its FY26 outlook, projecting double-digit growth for both tractors and light commercial vehicles (LCVs). Jefferies highlighted that M&M plans to launch three new SUVs in 2026 and introduce a new platform in 2027, indicating a strong product pipeline for the medium term.
HSBC
HSBC also maintained its “buy” rating on Mahindra & Mahindra with a target price of Rs 4,000, noting that the company’s auto business margins exceeded expectations, while farm business margins were in line.
The brokerage highlighted M&M’s decision to raise its growth forecast for tractors and LCVs to low double digits. Additionally, HSBC emphasized that mid-cycle upgrades and product refreshes in the SUV segment should help M&M maintain its market share gains in the auto sector.
Citi
Citi shared a similarly positive outlook, maintaining its “buy” rating and target price of Rs 4,230 per share. The brokerage said M&M’s Q2 results surpassed estimates, driven by stronger-than-expected margins.
It highlighted that management has forecasted 10-12% year-on-year growth in tractor sales and upheld its mid-to-high-teens growth outlook for utility vehicles, supported by ongoing demand and a growing product portfolio.
Company Overview & Others
Mahindra & Mahindra Ltd. is a leading Indian multinational company, part of the Mahindra Group, known for manufacturing a wide range of vehicles, including SUVs, tractors, and commercial vehicles. The company has a strong presence in sectors such as automotive, agriculture, IT, aerospace, and renewable energy.
Mahindra is recognised for its innovation, with significant strides in electric vehicles through Mahindra Electric. With a focus on sustainability and growth, the company operates globally, impacting industries and communities with its vision of “Rise”.
The company has a Return on Capital Employed (ROCE) of 13.9% and a Return on Equity (ROE) of 18.0%, which indicates strong profitability and efficient use of capital. Its stock P/E stands at 31.7, which is slightly lower than the industry average of 33.8, suggesting it may be relatively undervalued compared to its peers.
Over the past five years, the company has delivered impressive profit growth, with a 113% compound annual growth rate (CAGR). Additionally, it maintains a healthy dividend payout ratio of 20.1%, reflecting a commitment to rewarding shareholders while continuing to grow.
Written by Sridhar J
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