Updated Feb 26, 2026 10:27 IST
M&M Share Price: Brokerage house Nuvama has given a target of Rs 4,400 while maintaining BUY rating on Mahindra And Mahindra…
highlights
- Brokerage firm Nuvama has maintained BUY rating on Mahindra & Mahindra.
- Nuvama has given a target of Rs 4,400 on the auto stock.
- The brokerage is seeing a profit of about 26% on the current price of Mahindra & Mahindra shares.
M&M Share Price: Auto stocks are once again in the news in the stock market. Brokerage house Nuvama has maintained Buy rating on Mahindra & Mahindra shares. The brokerage has given a big target of Rs 4400 while advising to buy. This is about 900 points more than the current price of auto stock Rs 3491.30. This means that from here the potential upside of about 26 percent is visible in the stock. In such a situation, let us understand why brokerages are bullish on auto stocks and what are the earning opportunities from here.
Nuwama’s opinion on M&M
Brokerage firm Nuvama believes that between financial years 2026 and 2030, the company’s revenue can compound at the rate of 15% to 40% in different segments. An even bigger leap is expected in the auto business. It is estimated that auto revenues may grow by about 8 times between FY20 to FY30, in which the SUV and commercial vehicle segments will play an important role.
Mahindra already has a strong hold in the SUV space and the new launches may further strengthen this hold. In the coming time, models like BE7 and Vision Series are expected to be introduced on the NU_IQ platform, which can give a new identity to the company in the electric and technology-focused segment.
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Farm business will also become a growth engine
Mahindra’s farm equipment business is also a big trigger in the eyes of the brokerage. The revenue of this segment is estimated to grow three times between FY20 and FY30. Industry growth, increase in market share and increase in exports can support this.
The company has already been a leader in the tractor segment and this business can show further strength if rural demand improves. In such a situation, if both the auto and farm wheels move together, then a huge jump in the total earnings of the company is possible.
Profitability health and return ratio
The brokerage estimates that the company’s revenue CAGR could be around 16% and core earnings CAGR around 19% between FY25 to FY28. The special thing is that RoIC i.e. Return on Invested Capital is estimated to be above 60%, which is considered a very strong sign for any manufacturing company.
Stock’s performance so far
The stock has given a return of around 4.80% in the last six months, while it has gained 28% in one year. The 52-week low has been Rs 2,425 and the high has been Rs 3,839.90. The current price is closer to the high, but the brokerage feels there is still a rally left.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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