M&M share price target raised after Q3, top pick among most analysts

Shares of Mahindra & Mahindra Ltd. will be in focus on Thursday, February 12, after the company reported largely in-line December quarter results.

The company's consolidated revenue crossed ₹50,000 crore for the first time. Internals remain healthy, and the Auto and Farm mix stood at 67:33.

Brokerage firm CLSA has an 'Outperform' rating on the stock and has raised its price target to ₹4,702. It said M&M continues to be a revenue market leader in utility vehicles.

With a strong launch pipeline, superior execution and improving profitability, CLSA expects the company to deliver a 20% EBITDA CAGR over FY26-28.

Its Q3FY26 auto EBIT margin of 9.5% was ahead of estimates of 9.0%. For tractors, CLSA is building in 7% growth in FY27 after a robust FY26.

Nomura has maintained its 'Buy' rating with a price target of ₹4,662, citing a strong outlook across segments.

While Q3 average selling prices were slightly below expectations, it believes SUV growth will continue to drive outperformance versus the industry.

EBITDA margin at 14.7% was broadly in-line with its estimate of 14.9%, and the brokerage continues to retain M&M as its top pick.

HSBC has a 'Buy' rating with a price target of ₹4,250.

After strong growth in FY26E, it expects a normalised tractor volume CAGR of 3-5% over FY26-28E.

It believes successful model launches and calibrated capacity expansion will drive SUV volume growth while maintaining margin resilience.

However, it flagged a strong or early El Niño as a downside risk to estimates.

Jefferies, which also rates the stock a 'Buy' with a ₹4,500 target, citing that M&M delivered its 15th consecutive quarter of double-digit EBITDA growth, with December quarter EBITDA rising 27% YoY, in line with expectations.

The brokerage said the company is benefiting from strong industry demand and market share gains across tractors, SUVs and LCVs, though it remains cautious on the FY27 tractor industry outlook due to a high base.

Jefferies expects core EPS to rise 30% YoY in FY26, followed by a 15% CAGR over FY25-28E, and sees its 23x FY27E PE as attractive.

Bernstein has a 'Market-Perform' rating with a price target of ₹4,200.

It said that M&M is executing well across auto, farm and key subsidiaries simultaneously, a rare outcome for a conglomerate of this scale.

The brokerage attributed this to a mix of policy tailwinds such as EV support, GST cuts, rural and infrastructure spending, along with improved capital allocation, cost discipline and portfolio focus.

It believes this is a phase where most levers are working in tandem for M&M and should be ridden rather than faded.

Shares of M&M closed 0.022% lower at ₹3,675. The stock is down 4% from its 52-week high of ₹3,839.90.