Mahindra and Mahindra shares were in red on Friday after reporting strong Q2 results on Thursday.

What Happened: The Thar maker saw its net profit rise 13.19% from the previous year to ₹3,840.88 crore. The auto giant's revenue surged 12.94% to ₹27,553.26 crore. The numbers beat the analyst estimates of ₹3,585.95 crore net profit and met ₹27,182.3 crore revenue. 

The auto segment posted its highest-ever quarterly auto volume, 2.31 lakh units, up 9% from the previous year, along with the highest utility vehicle volume, 1.36 lakh units.

The farm equipment business' revenue gained 9.75% to ₹6,496.81 crore. The segment also posted its highest-ever Q2 market share at 42.5% and volumes increased by 4% from the previous year to 92,000 units. 

See Also: NHPC Q2 Profit Plunges 41% to ₹909 Cr, Misses Estimates

Brokerage Views: Jefferies maintained a "buy" call with a target of ₹3,700. The global brokerage firm said tractor demand is improving after one and a half years.

The research firm noted that the company's expanding portfolio is driving strong SUV volume growth. The company has been consistently gaining market share across all segments, the brokerage added. It upgraded FY24-27 earnings per share estimates by 3%-4% and expects a 19% compound annual growth rate over FY24-27. 

Goldman Sachs also maintained a "buy" call with a target price of ₹3,600. Q2 performance was a beat and the research firm raised tractor guidance and also sees upside potential for SUVs. As introductory price schemes roll away, the brokerage sees more margin potential in the automotive segment. The company is also on the brokerage's Asia-Pacific (APAC) Conviction list.

BofA also maintained a “buy” call on the company with a target price of ₹3,600. The results were a small beat and the tractor cycle is well on the path of recovery, the research firm said. SUV momentum is expected to sustain and the company said electric vehicle launches are coming soon, the brokerage noted.

Price Action: Mahindra and Mahindra fell 0.77% to ₹2,869.20 on Friday morning.

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