BoFA Projects 22% Upside
Bank of America Securities predicts Mahindra & Mahindra (M&M) shares will rise to ₹3,050 in the next 12 months.
BoFA upgraded M&M to "buy" from "neutral," raising the price target to ₹3,050 from ₹2,450, indicating a 22% upside.
BoFA highlights multiple growth catalysts for M&M expected to unfold in the next 12-18 months.
M&M's core business shows steady growth, with market share gains in SUVs and a potential turnaround in tractors.
In FY24, M&M's SUV market share rose by 130 basis points to 20.4%, and LCV market share increased by 350 basis points to 49%.
M&M's tractor market share also increased by 40 basis points to 41.6%.
BoFA notes M&M's subsidiaries will play a larger role, citing strong management and bold growth plans.
At current prices, M&M's consolidated P/E multiple of 19x is favorable, with an EPS CAGR of 18% and RoE target of 20%.
Out of 40 analysts, 35 recommend "buy," 4 say "hold," and only 1 recommends "sell." M&M is up 44% in 2024, leading the Nifty 50.