Mahindra & Mahindra: Sector Leader Trading Near Peak

🔍Technical Analysis

Mahindra & Mahindra Limited stands as the exceptional performer in the automobile sector. While most automobile stocks are trading at significant discounts from their all-time highs, M&M is the only stock trading near its all-time high - a testament to its superior operational performance and market leadership.

Technically, the stock has delivered a super bullish rally spanning over a decade. From trading below ₹500 a decade ago, it has rallied to ₹3,781 by November 2025 - representing an impressive 7.5x growth showcasing consistent value creation.

For the past 3-4 months, the ₹3,700-₹3,800 zone has acted as resistance multiple times, with the stock currently trading at ₹3,757. However, over the past 6 months, the stock has been forming higher lows consistently, with the most recent higher low established at ₹3,500 - indicating strong underlying accumulation and bullish structure.

Entry Strategy: Plan entry at the next higher low formation in the ongoing uptrend pattern.

Targets:

- Target 1: ₹3,800
- Target 2: ₹3,900
- Target 3: ₹4,000

Stop Losses:

- Critical Support: ₹3,500 (recent higher low)

No expectations below ₹3,500 as it would break the higher low pattern.

💰FY25 Financial Highlights (vs FY24 & FY23)

• Total Income: ₹1,59,211 Cr (↑ +14% YoY from ₹1,39,078 Cr; ↑ +31% from FY23 ₹1,21,269 Cr)
  
• Total Expenses: ₹1,28,693 Cr (↑ +13% YoY from ₹1,14,186 Cr; ↑ +27% from FY23 ₹1,00,983 Cr)
  
• Financial Profit: ₹30,518 Cr (↑ +23% YoY from ₹24,892 Cr; ↑ +50% from FY23 ₹20,285 Cr)
  
• Profit Before Tax: ₹19,080 Cr (↑ +19% YoY from ₹15,978 Cr; ↑ +36% from FY23 ₹14,060 Cr)
  
• Profit After Tax: ₹14,073 Cr (↑ +15% YoY from ₹12,270 Cr; ↑ +24% from FY23 ₹11,374 Cr)
  
• Diluted EPS: ₹103.97 (↑ +15% YoY from ₹90.62; ↑ +26% from FY23 ₹82.68)
  

🧠Fundamental Highlights

Mahindra & Mahindra delivered stellar FY25 performance with consolidated revenue growing 14% to ₹1,59,211 crore and PAT rising 20% (excluding KG Mobility impact) to ₹12,929 crore. The company announced 20% dividend increase to ₹25.3 per share, demonstrating strong cash generation of ₹10,000 crore in FY25.

Q4 FY25 showcased exceptional momentum with consolidated PAT up 20% to ₹3,295 crore and revenue growing 20% to ₹42,599 crore. The company achieved significant market share gains: SUV revenue share jumped 310 bps YoY to 23.5%, LCV (<3.5T) market share surged 480 bps, and tractor market share reached all-time high of 43.3% (up 170 bps YoY).

Auto division reported outstanding performance with standalone PBIT margin improving 110 bps to 9.2% in Q4 and full-year PBIT growing 30% to ₹8,277 crore. Farm sector standalone PBIT increased 30% to ₹5,371 crore with Q4 margin expansion to 19.4% and core tractor PBIT margins improving 200 bps.

Strategic EV initiatives gaining traction with BE 6 and XEV 9e launch creating record 30,179 bookings on Day 1. The company has delivered 6,300 electric vehicles and targets 20-30% EV contribution by FY30. M&M plans ₹27,000 crore capex for automotive business (FY25-27) with 9 ICE SUVs and 7 BEVs launches planned.

Brokerages project strong multi-year growth with Nuvama expecting 15-40% revenue CAGR across segments over FY25-30 and maintaining Buy rating with ₹4,200 target. Emkay Global raised target to ₹3,800 citing 15-17% FY25-30 revenue CAGR guidance. The company targets eight-fold SUV revenue scale-up between FY20 and FY30 through INGLO and NU_IQ platforms.

✅Conclusion

Mahindra & Mahindra's exceptional positioning as the only automobile stock near all-time highs, backed by stellar FY25 showing 15% PAT growth and 14% revenue increase to ₹1,59,211 crore, validates its sector leadership. The higher low pattern with recent support at ₹3,500 provides technical confidence for targeting ₹4,000 levels. Record 43.3% tractor market share, 23.5% SUV market share, and ₹10,000 crore cash generation demonstrate operational excellence. EV strategy with 30,179 Day 1 bookings and ₹27,000 crore capex provide strong growth visibility. Brokerage targets at ₹3,800-₹4,200 with ROE at 18.1% support premium valuation for this multi-decade wealth creator.

Disclaimer: This analysis is for educational purposes only. Please consult your financial advisor before making investment decisions. Stock markets are subject to risks.