M&M shares hit record high on strong Q3 results, positive growth outlook

Shares of Mahindra & Mahindra (M&M) surged 2.5 percent to reach an all-time high on Monday, February 10, outperforming a weak broader market after the company announced strong December quarter earnings. The stock's bullish momentum was further supported by multiple brokerage firms reiterating their positive stance on the automobile manufacturer.

Jefferies, a global brokerage firm, has set a target price of ₹4,075 for M&M, indicating a potential upside of 28 percent from its last closing price. The brokerage maintained a 'Buy' rating on the stock, citing strong earnings growth and an expanding portfolio in the SUV and tractor segments.

Meanwhile, Goldman Sachs revised its target price upwards by ₹100 to ₹3,800 from ₹3,700. The firm retained its 'Buy' rating, stating that while electric vehicle (EV) contract margins would likely keep standalone margins range-bound, M&M’s strong demand visibility in SUVs and tractors remained a key driver for growth. According to Goldman Sachs, the stock has the potential to rise 19 percent from its last closing price.

Jefferies highlighted that M&M delivered its 11th consecutive quarter of double-digit EBITDA growth, with EBIT margins expanding by 1.4–2.6 percent year-on-year (YoY) in both the farm and auto segments. The brokerage noted that tractor demand, which had been subdued for the past 1.5 years, showed signs of revival, with expectations of over 15 percent growth in the fourth quarter. Additionally, strong SUV sales, including models such as the XUV 3XO and the upcoming five-door Thar, have been instrumental in M&M’s growth trajectory.

Goldman Sachs echoed similar sentiments, noting that the management had raised its tractor volume guidance for Q4FY25 and FY26, reflecting continued strength in the segment. The brokerage emphasized M&M’s strong position in both the SUV and tractor markets, which are expected to drive sustained revenue growth.

Financial Performance

M&M reported a 19 percent YoY growth in its standalone net profit, reaching ₹2,964 crore for the December quarter. Revenue from operations rose 20 percent YoY to ₹30,538 crore, supported by higher vehicle and tractor sales.

Standalone EBITDA for the third quarter increased by 32 percent YoY to ₹4,810 crore, reflecting the company’s strong operational efficiency and cost control measures.

Total volumes grew 16 percent YoY to 2.45 lakh units during the reporting period. Tractor sales surged 20 percent YoY to 1.2 lakh units, benefiting from rising farm incomes and a rebound in rural demand.

M&M’s strong financial performance, coupled with robust demand for its SUVs and tractors, has reinforced investor confidence, driving the stock to record highs. With positive guidance from brokerages and strong earnings momentum, the company remains well-positioned for future growth.

Stock Price Trend

The stock rose as much as 2.5 percent to its new high of ₹3276.30 in intra-day deals today. It has now surged 102 percent from its 52-week low of ₹1,623.20, hit in February 2024.

In the last 1 year, the auto major has rallied over 94 percent. Moreover, it has added almost 8 percent in February so far after a half a percent decline in January 2025.