M&M shares rally 3% after UBS upgrades stock to But, negating any impact from Tesla’s India entry

Mahindra & Mahindra (M&M) saw a 2% jump in its stock price after UBS upgraded its rating from ‘Neutral’ to ‘Buy,’ setting a revised target price of ₹3,300. The upgrade comes after a 19% correction in M&M’s stock over the past month, making the valuation more attractive for investors.

UBS highlights the beginning of a multi-year upcycle in the tractor segment, which contributes significantly to M&M’s revenue and profitability. Unlike the passenger vehicle industry, the farm equipment sector faces fewer regulatory and technological disruptions, ensuring steady growth.

M&M continues to strengthen its leadership in the SUV market with strong product launches and competitive pricing. Although recent EV bookings were slightly below market expectations, UBS remains optimistic about M&M’s electric vehicle strategy, especially given the overall growth in India’s EV market. With new SUVs and EVs expected in FY26, M&M is well-positioned to expand its market share.

Concerns about Tesla’s entry into India impacting M&M’s sales have been dismissed, as Tesla’s premium pricing does not directly compete with M&M’s product range. UBS also notes that M&M’s recent stock price correction presents a strong entry opportunity for investors.

Looking ahead, UBS forecasts a 9% volume growth for M&M in FY26, significantly outpacing the auto industry’s projected 2% growth rate.

Mahindra & Mahindra (M&M) shares opened at ₹2,661.95, reaching a high of ₹2,683.00 and a low of ₹2,642.65 during the session. The stock’s 52-week high stands at ₹3,270.95, while the 52-week low is ₹1,788.80.

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