Mahindra & Mahindra shares slid 1% to ₹2,837.80 on Wednesday, following Kotak Institutional Equities’ decision to trim its price target to ₹4,000 from ₹4,175.
The cut comes amid a 15.5‑fold estimate of core earnings per share for FY2028, a valuation that Kotak regards as attractive. Even with the new target, analysts still see a potential upside of up to 40% versus Tuesday’s close, signaling confidence in the automaker’s recovery plan.
In September, the company delivered a 19.2% year‑on‑year increase in total production, reaching 1.22 lakh units compared with 1.02 lakh a year earlier. Total sales jumped 16.3% to 1.14 lakh units from 97,744 units, while exports grew 9.2% to 4,458 units, underscoring the strength of its export and SUV segments.
Rajesh Jejurikar, Executive Director and CEO of M&M’s Auto and Farm sectors, said the firm remains on track to meet its earlier growth expectations. He added that the tractor industry is projected to grow about 5% in FY27, a moderate pace after a robust prior year and influenced by delayed monsoon conditions.
Of the 41 analysts tracking the stock, 38 recommend a ‘Buy’ and three a ‘Hold’, with no ‘Sell’ ratings. The average 12‑month target price sits at ₹4,109.74, implying roughly 44% upside from the Tuesday close of ₹2,864.40, a figure that highlights the bullish sentiment despite the recent dip.
Kotak also flagged the launch of NU_IQ‑based tractors in the first half of FY2027 as a key driver to reclaim lost SUV market share. With pricing power and a projected margin recovery, the firm maintains its ‘Buy’ rating while still pacing the market at a 15.5‑times core earnings multiple.