Shares of Mahindra & Mahindra surged in morning trade on February 24, recovering from a sharp 6 percent drop in the previous session to rise nearly 2 percent to Rs 2,712. The surge came after Jefferies reaffirmed its ‘buy’ rating, setting a target price that indicates significant upside from current levels.
With a price target of Rs 4,075, the international brokerage estimates a staggering 52.6 percent upside potential from the last close of Rs 2,669 on the National Stock Exchange. M&M shares witnessed the biggest single-day fall in nearly 7 months during the previous session.
Analysts at Jefferies view the recent decline in its stock as a buying opportunity. The brokerage finds M&M’s valuation attractive, given that its FY26 projected price-to-earnings ratio is 20x, supporting an 18 percent EPS CAGR for FY25-27.
Jefferies considers M&M a stronger investment case than Maruti Suzuki and Hyundai, citing its favourable industry demand tailwinds and market share growth in both tractors and SUVs. Meanwhile, Maruti Suzuki and Hyundai continue to lose ground in the passenger vehicle segment.
In other news, the company’s newly launched electric sports utility vehicles have received a significant response, registering 30,179 bookings on the first day on February 16. The total booking value stands at Rs 8,472 crore (ex-showroom price). The split between the XEV 9e and BE 6 is 56 per cent and 44 percent, respectively, Mahindra & Mahindra said in an official statement. Both models are priced between Rs 18.9 lakh and Rs 30.5 lakh (ex-showroom).
The company said the strong demand underlines the confidence customers have in Mahindra’s Unlimited India vision – delivering innovative, world-class electric SUVs that offer a distinctive blend of luxury, performance and technology.
At around 9:20 am, the company’s shares were trading at Rs 2,700, up 1.1 percent from its previous close on the NSE. M&M shares have not started the year on a positive note and are down over 11 percent year-to-date.
