M&M Shares Race Past ₹3,000-Mark For The 1st Time As Brokerarges Hike Target Price After Investor Day

Auto major Mahindra & Mahindra's shares surpassed ₹3,000 on Tuesday after brokerages raised the target price on the scrip after the company's investor day. Shares hit a fresh all-time high of ₹3,013.50 in the trading session.

What Happened: On June 14, Mahindra and Mahindra on its investor day said it plans to launch 23 models by 2030 and roll out a capex of ₹27,000 crore between FY25 and FY27. 

Brokerage Views: Nuvama Institutional Equities retained its "buy" call and hiked the target price to ₹3,500 from ₹2760. The research firm expects a revenue compound annual growth rate (CAGR) of 18% over FY24-FY26 led by robust growth of 20% in autos and 11% in the farm segment. The recovery in the farm segment will be led by better monsoons, benign government policies for farmers, market share gains and robust exports. 

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Nomura maintained the "buy" call and raised the target price to ₹3,374 from ₹2818.  The brokerage expects battery electric vehicles to drive into the premium segment for the company. The farm machinery segment has a high potential for the company. The exports and ‘growth gems' have further upside. Nomura also sees the company to continue delivering market-beating growth across segments. 

Motilal Oswal also reiterated the "buy" call and revised the target price to ₹3,310 as they raised their FY25, and FY26 earnings by 7% to factor in the healthy response to its new model launches and tractor demand revival in FY25. They see the company having a revenue and profit CAGR of  18% and 20% respectively over FY24-26.

Kotak Securities also maintained its “add” rating for the stock raising the price target to ₹2,950 from ₹2,550.

Price Action: Shares of M&M jumped 2.51% to ₹3,002 on Tuesday morning. The surge in share price propelled the company’s market cap past ₹3.7 lakh crore, surpassing Tata Motors and Hindustan Aeronautics to make it the 16th most valuable company listed on the National Stock Exchange.

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