M&M shares jump after robust Q4 results. Explore the 2024 price target and if it's a good time to buy this auto stock

M&M Share Price Target 2024: Shares of Mahindra & Mahindra (M&M) jumped over 7 per cent in early morning deals on Friday (May 17) after the auto major posted strong fourth quarterly (Q4 FY24) results.

At the time of filing this report, M&M shares were trading at Rs 2,525.40 on NSE, up 6.48 per cent against its previous closing price.

M&M Q4 Results 2024

M&M on Thursday (May 16) reported a net profit of Rs 2,038.21 crore in Q4 FY24, registering a growth of 31.6 per cent from Rs 1,548.97 crore in the year-ago period. The auto major’s revenue from operations in Q4 FY24 came in at Rs 25,108.97 crore, up 11.24 per cent YoY from Rs 22,571.37 crore.

M&M's Board also declared a dividend of Rs 21.10 per equity share, so far the company's highest-ever.

M&M Share Price Target 2024

Brokerages are mixed on Anand Mahindra's M&M post Q4 results. Here's what brokerages say.

CLSA on M&M

• CLSA has downgraded its rating on M&M from "OUTPERFORM" to "SELL," while hiking the target price to Rs 2,312 from Rs 2,115. The brokerage noted that M&M's standalone EBITDA exceeded its expectations.

• The brokerage foresees 10 per cent growth in Tractors for FY25.

• The brokerage believes the stock is now fairly priced after its recent rally.

Jefferies on M&M

• Jefferies has upgraded its rating on M&M from "HOLD" to "BUY," while also increasing the target price to Rs 2,910 from Rs 1,615. The brokerage highlighted that despite a late downturn in Tractors, M&M is expanding its SUV portfolio and capacity.

• Jefferies also raised its EPS estimates for FY25-26 by 16-21 per cent.

• The brokerage believes that M&M's valuations are still 20 per cent below the blended peer average.

M&M Share Price History

M&M shares, according to BSE Analytics, have appreciated 14.56 per cent in the past week, 23.69 per cent in the past one month, and 36.85 per cent in the past three months. So far in 2024, the auto major gained 47.45 per cent, and rallied 58.58 per cent in the past six months.

In the past one year, three years, five years and 10 years, the Thar-maker's shares delivered returns of 98.84 per cent, 233.5 per cent, 304.35 per cent, and 352.37 per cent, respectively.