M&M shares climbs over 6 per cent. Here are the reasons

In the past five sessions, shares of the automobile major climbed over 16 per cent


Shares of Mahindra & Mahindra Ltd (M&M) climbed over 6 per cent on Friday after analysts raised the target price following the company's greater-than-expected March quarter results. As the stock continued to rally, M&M touched market capitalisation (m-cap) of Rs 3 trillion.

In the past five sessions, shares of the automobile major climbed over 16 per cent.

Jefferies upgraded the rating on M&M stock to 'buy' from 'hold', setting a fresh target price of Rs 2,910 from Rs 1,616. Morgan Stanley has an 'overweight' call on the stock and expects it to be the fastest-growing PV manufacturer in the financial year 2025. 

Nuvama Institutional Equities has set a target price of Rs 2,760 as the analysts see further growth in sales owing to better monsoons and favourable policies of the Union government. 

Emkay Global has a 'buy' rating on M&M shares as it anticipates strong growth in SUV sales.

M&M, on Thursday, reported a 4 per cent increase in consolidated profit after tax (PAT) to Rs 2,754 crore for the March quarter, driven by the strong performance of its automotive and farm sector segments. The company had a consolidated PAT of Rs 2,637 crore in the January-March quarter of the 2022-23 fiscal.

Revenue increased to Rs 35,452 crore in the quarter, registering a growth of 9 per cent, as compared to Rs 32,456 crore in the corresponding period a year ago, the company said.

"It has been an excellent year with most of our businesses delivering a high level of performance. Auto continued its high growth trajectory, Farm gained share in a tough market and Mahindra Finance delivered on asset quality," M&M managing director & CEO Anish Shah said.

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