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Why Kotak Sees a Major Turnaround for M&M Despite Recent Share Price Declines
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CNBC TV18•14-10-2026, 12:07
Why Kotak Sees a Major Turnaround for M&M Despite Recent Share Price Declines
- •Kotak Institutional Equities lowered its target price for Mahindra & Mahindra to 4,000 rupees from 4,175 rupees but maintained its Buy rating.
- •The brokerage sees an upside potential of up to 40 percent, noting that recent concerns regarding tractor downcycles and SUV market share losses are cyclical and reversible.
- •M&M reported a 19.2 percent year-on-year increase in total production to 1.22 lakh units in September.
- •Of the 41 analysts tracking the stock, 38 have Buy recommendations and three have Hold ratings, with no Sell recommendations.
Key Questions Answered
Kotak reduced M&M's target price to ₹4,000 from ₹4,175 due to a stock correction over the past year caused by a tractor downcycle, SUV market share losses, competition from new entrants, and commodity inflation, though it maintained a "Buy" rating with up to a 40% upside potential.
In September, M&M reported a 19.2% year-on-year increase in total production to 1.22 lakh units, while total sales rose 16.3% to 1.14 lakh units and exports increased by 9.2% to 4,458 units.
M&M expects the tractor industry to grow around 5% in FY27, reflecting a higher base from previous strong growth, delayed monsoon conditions, and pressure on reservoir levels.
