JPMorgan raises Mahindra & Mahindra stock price target on margin strength

Published 05/11/2025, 07:48
© Reuters.

Investing.com - JPMorgan has raised its price target on Mahindra & Mahindra Ltd (NS:MM) (OTC:MAHMF) to INR4,180.00 from INR4,030.00 while maintaining an Overweight rating following the company’s second-quarter fiscal 2026 results.

The automaker’s Q2FY26 performance slightly exceeded both JPMorgan and consensus expectations, primarily due to margin surprises across both Farm and Auto segments.

Management has provided a positive outlook for fiscal year 2026, guiding for mid-to-high teens SUV volume growth and low double-digit volume growth for both Tractors and Light Commercial Vehicles (LCVs).

JPMorgan currently forecasts 14% SUV growth for FY26, while projecting 8% growth for LCVs and 12% growth for Tractors.

The firm upgraded its margin assumptions due to reduced losses in the farm equipment segment and better-than-expected margin performance in SUV electric vehicles, driving core EBIT estimates 2-6% higher for fiscal years 2026-2028.

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