Shares of car maker Mahindra & Mahindra jumped nearly 4% after brokerages were bullish on the company following the release of its October sales data.

What Happened: The company sold a total of 96,648 vehicles in October across domestic and international markets, surpassing analysts’ estimates. Of these, 93,142 vehicles were sold in the domestic market, while 3,506 vehicles were exported.

Analysts had seen the company posting a 10.9% growth to 89,500 units from 80,679 units in the previous year.

In the utility vehicles segment, Mahindra sold 54,504 vehicles in the domestic market — its highest-ever SUV sales — reflecting a growth of 25%, the company said. Overall, the total reached 55,571 vehicles, including exports. Domestic sales for commercial vehicles were recorded at 28,812 units.

Moreover, Mahindra's farm equipment sector hit its highest-ever tractor sales in India, totalling 64,326 units in the month, the company said. Exports for the month stood at 1,127 units.

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Brokerages’ Comments: Kotak Institutional Equities has upgraded the firm’s stock to “buy” with a target price of ₹3,150. Despite a slowdown in the domestic passenger vehicle segment, Kotak views the company as well-positioned to outperform in each segment, supported by its recent launches.

Mahindra & Mahindra continues to execute effectively across all three segments, demonstrating improvements in return ratios, the brokerage noted. It said that the tractor industry is poised for recovery during the second half of FY25.

The company’s market shares in light commercial vehicles improved by 180 basis points in the first half of the year, Kotak noted. However, domestic light commercial vehicle segment volumes declined by 6%. The brokerage cut M&M’s FY25-26 earnings per share estimates by 1%-4%.

Goldman Sachs has assigned a “buy” rating to Mahindra & Mahindra with a target price of ₹3,600 and has added the stock to its APAC conviction list. The firm anticipates that the company's robust order backlog for new SUVs and upcoming battery electric vehicle launches will provide strong growth visibility, outpacing its peers. M&M's farm equipment segment is entering a phase of improving market dynamics, it added.

Price Action: Mahindra & Mahindra’s shares shot up 3.55% to ₹2,917.70 on Monday morning.

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