M&M Stock Jumps 3% After BofA Upgrade to ‘Buy’, Target Price Set at Rs 3,050

Shares of Mahindra & Mahindra (M&M) rose about 3% on May 31 after Bank of America Securities upgraded the stock to ‘buy’ and set a new target price of Rs 3,050, suggesting a 22% potential increase.

At 12:38 pm, M&M shares were trading at Rs 2,513.65 on the NSE.


BofA Securities highlighted several growth drivers for M&M expected to unfold in the next 12-18 months. They are optimistic about the company’s strong performance in the SUV market and a possible rebound in the tractor business. By the end of FY24, M&M’s market share in SUVs rose to 20.4%, light commercial vehicles to 49%, and tractors to 41.6%.

BofA also pointed out that M&M’s subsidiaries are set to significantly boost the company’s future performance. They praised M&M’s strong management, ambitious growth strategies, and focus on sustainability.

The brokerage is comfortable with M&M’s current price-to-earnings ratio of 19x, considering it favorable. They expect M&M’s earnings per share to grow at an 18% CAGR, aiming for a 20% return on equity.

Most analysts share this positive outlook, with 35 out of 40 brokerages rating the stock as a ‘buy’. M&M has been the best-performing stock in the Nifty 50 in 2024, delivering returns of around 48%.

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