Motilal Oswal Maintains BUY Rating on Mahindra & Mahindra with ₹4,521 Target Price
Motilal Oswal has reiterated its BUY rating on Mahindra & Mahindra with a target price of ₹4,521, expecting strong growth driven by new model launches. The brokerage projects 14% UV volume CAGR over FY25-28E, with the XUV7XO expected to add 2,000-3,000 incremental monthly units. The company's robust pipeline includes two ICE variants and one EV for FY27, supporting projected revenue, EBITDA, and PAT growth rates of 19%, 18%, and 21% respectively over FY25-28E.
*this image is generated using AI for illustrative purposes only.
Mahindra & Mahindra has received a strong endorsement from Motilal Oswal, with the brokerage firm maintaining its BUY rating and setting an ambitious target price of ₹4,521. The recommendation comes after comprehensive test drives of the company's latest offerings and analysis of its robust product pipeline.
New Model Launches Drive Growth Expectations
Motilal Oswal's research team conducted test drives of both the XUV7XO and XEV9S models, highlighting significant feature enhancements that position these vehicles competitively in the market. The XUV7XO stands out with multiple premium upgrades that set new benchmarks in its segment.
| Feature Category | XUV7XO Specifications |
|---|---|
| Suspension: | Best-in-class suspension system |
| Display: | Three-screen display layout |
| Audio System: | 16-speaker Harman Kardon setup |
| Technology: | Enhanced ADAS and electronics |
| Entertainment: | Dolby Vision with Dolby Atmos |
| Interior: | Superior seating with ambient lighting |
The brokerage expects the XUV7XO to contribute approximately 2,000-3,000 incremental units to the monthly run-rate of the XUV700 model, indicating strong market potential for this upgraded variant.
XEV9S Features and Market Positioning
The XEV9S model maintains similar interior features to its internal combustion engine (ICE) variant while incorporating advanced technological enhancements. Key differentiators include semi-active suspension technology and an augmented reality heads-up display, positioning it as a premium offering in the electric vehicle segment.
Future Product Pipeline and Growth Projections
Mahindra & Mahindra's strategic product roadmap extends through FY27, with plans for additional model launches that support long-term growth sustainability. The company's pipeline includes two more ICE variants scheduled for FY27, alongside one electric vehicle in the same fiscal year.
| Growth Metrics | FY25-28E CAGR Projections |
|---|---|
| UV Volume Growth: | 14% |
| Revenue Growth: | ~19% |
| EBITDA Growth: | ~18% |
| PAT Growth: | ~21% |
Investment Outlook and Valuation
Motilal Oswal's financial projections reflect strong confidence in Mahindra & Mahindra's operational performance across key metrics. The brokerage estimates the company will achieve a compound annual growth rate of approximately 19% in revenue, 18% in EBITDA, and 21% in profit after tax (PAT) over the FY25-28E period.
The target price of ₹4,521 is based on December 2027 estimated sum-of-the-parts (SoTP) valuation methodology. This healthy launch pipeline is expected to help sustain strong demand momentum going forward, supporting the brokerage's optimistic outlook for the automotive manufacturer's growth trajectory.
Historical Stock Returns for Mahindra & Mahindra
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.25% | -2.23% | -0.12% | +16.45% | +19.16% | +377.26% |
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