Mahindra and Mahindra share price in focus: Automobile major Mahindra & Mahindra (M&M) on May 5, announced its results for the fourth quarter of FY26. Along with the results, the company’s board has also recommended a final dividend of Rs 33 per equity share of face value Rs 5 each for FY26. The brokerage firm Nomura is bullish on the auto stock. Let’s find out why and also check the latest target price.
The brokerage firm, Nomura, maintains a buy call on Mahindra and Mahindra with an unchanged target price of Rs 4,580. Here’s why:
1. M&M is optimistic on the demand outlook of mid-to-high teens volume growth for SUVs in FY27E.
2. M&M expects its SUV production capacity to increase from 64,500 units per month (56,500 ICE vehicles and 8,000 EVs) currently to 68,000 units by September 2026 and further to 82,000 units by March 2027, comprising 70,000 ICE vehicles and 12,000 EVs.
3. The company plans to launch 10 ICEs and 6BEVs over FY27-31E.
4. The Nagpur plant will eventually have a capacity of 500k SUVs and 100k tractors, which will commence operation in 2028.
5. EV Demand is strong, and ASPs are much higher than ICE ASPs
6. 70% of M&M’s BEVs have driven 1,000 km/month, which means they are being used as primary vehicles
7. 80% of BEV owners are first-time buyers of M&M
8. The company currently gets PLI scheme income, which supports margins and should continue till FY28E
9. Planning to set up 1k fast chargers, and OMCs are also planning to set up many chargers to increase EV adoption
10. Management expects tractors’ capacity to expand by FY31E and revenue to scale by 1.5-2x.
11. The aerospace business has USD1bn of orderbook and a very strong pipeline.
12. Nomura estimates that utility vehicle (UV) volumes will reach 753,000-851,000 units, reflecting a year-on-year growth of 14%, while tractor volumes are projected at 526,000-552,000 units, indicating a 5% year-on-year increase.
The brokerage expects revenue CAGR of 13% over FY26-28F.
Mahindra & Mahindra Ltd reported a 48.5 per cent jump in consolidated profit after tax at Rs 5,259.91 crore for the fourth quarter ended March 31, 2026, primarily driven by its auto and farm sectors.
The company had posted a consolidated profit after tax (PAT) of Rs 3,541.85 crore in the corresponding period of the previous fiscal year, Mahindra & Mahindra Ltd (M&M) said in a regulatory filing.
Consolidated revenue from operations in the fourth quarter stood at Rs 54,891.55 crore, as against Rs 42,585.67 crore in the year-ago period, it added.
Total expenses in the quarter under review were higher at Rs 49,615.48 crore, as compared to Rs 39,113.61 crore in the corresponding period of the previous financial year, the company said.
For FY26, consolidated PAT was at Rs 18,621.71 crore as compared to Rs 14,073.17 crore in FY25, up 32.32 per cent.
Consolidated revenue from operations in FY26 stood at Rs 1,97,792.78 crore as against Rs 1,58,749.75 crore in FY25, the company said.
At the time of writing this report (12:24 PM), the shares of Mahindra & Mahindra Ltd. were trading 0.97 per cent higher at Rs 3044.00, compared to the previous closing price of Rs 3,014.85.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
