Mar'25 View on Mahindra & Mahindra Ltd

Mahindra & Mahindra Ltd is one of the most diversified automobile company in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers. It was incorporated in 1945 by Ghulam Mohammad and two Mahindra Brothers (KC & JC Mahindra) and was later renamed as Mahindra & Mahindra in 1948. It also has presence across financial services, auto components, hospitality, infrastructure, retail, logistics, steel trading and processing, IT businesses, agri, aerospace, consulting services, defence, energy and industrial equipment through its subsidiaries and group companies. After falling from 3,300 levels the stock has made a reversal from its recent lows of 2,500 and looks zoom pass 3,300 and touch 3,500 on back of positive data points. • Automotive division’s revenues were up 21% yoy; 17% yoy rise in volumes. • Auto EBIT margin was 9.7% (+140 bps yoy/+20 bps qoq), 70 bps above our estimates. • Tractor division’s revenues increased 21% yoy; 20% yoy increase in volumes. • Tractor: Company’s market share improved 240 bps yoy to 42.5% in Q3FY25. • Q3FY25: Standalone EBITDA was 1% below our estimates. • M&M continue to execute well by maintaining a leadership position in all 3 segments. • Tractor: Company expects the demand trends in Q4FY25E to remain strong. • M&M maintain its top position among SUVs, revenue market share of 23% in Q3FY25. • We expect M&M to continue outperforming industry growth across auto/tractor.