On Monday, ICICI Securities updated its outlook on Mahindra & Mahindra Ltd (MM:IN) (OTC: MAHMF) shares, increasing the price target to INR3,365 from INR2,735 while maintaining a Buy rating. The revision follows insights from Mahindra & Mahindra's investor day, where the company showcased its strategic direction and upcoming product launches.
The firm's analyst noted that Mahindra & Mahindra is gearing up to introduce at least two battery electric vehicles (BEVs) by the end of the fiscal year 2025. These vehicles will be part of the company's Born Electric (BE) platform.
Mahindra & Mahindra targets a significant presence in the electric vehicle segment, aiming for BEVs to constitute over 20% of its sports utility vehicle (SUV) portfolio by the fiscal year 2027.
Additionally, the company's new XUV3X0 model is expected to compete with popular models from other brands, such as the Venue, Sonnet, Brezza, and Nexon. The launch of this model is projected to increase Mahindra & Mahindra's SUV market share to more than 20% in the fiscal year 2025, up from approximately 18% in the fiscal year 2024.
Mahindra & Mahindra also anticipates growth in the tractor segment, forecasting a compound annual growth rate (CAGR) of around 7% in domestic tractor volumes. The company plans to expand its global market share, currently at about 5%, by entering new markets in the ASEAN region and Western Europe.
In light of these developments, ICICI Securities has raised its forecast for the company's EBITDA for the fiscal year 2026 by approximately 5%, driven by an estimated 5% increase in tractor volume projections. The firm's positive stance on Mahindra & Mahindra reflects confidence in the company's growth prospects and strategic initiatives in the automotive sector.
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