After the Q3FY25 results of Mahindra & Mahindra (M&M), reported on Friday, global brokerage firm Goldman Sacha raised its target price on the stock to INR 3,800, up from an earlier INR 3,700, while maintaining its ‘buy’ rating, indicating an upside of 21% for the same.

Post this, the shares of M&M surged 2.45% to its new all-time high of INR 3,276.30 on the BSE.

The brokerage firm's positive outlook is underpinned by M&M's raised tractor guidance and expectations of sustained strength in tractor volumes through Q4FY25 and FY26.

M&M's management has indicated confidence in the ongoing momentum of its tractor business, projecting healthy volumes in the foreseeable future. This positive outlook reinforces the company's strong position in the agricultural segment.

Despite the optimistic tractor outlook, Goldman Sachs notes that EV (Electric Vehicle) contract margins are likely to keep margins range-bound for M&M's standalone business. The nascent EV segment, while promising, may not yet be expected to significantly boost overall profitability.

Goldman Sachs highlights the strong demand visibility for M&M's core SUV and tractor businesses as one of the key factors supporting its optimistic outlook on the company. The company's established presence and robust demand in these key segments further provide a solid foundation for future growth.

M&M Q3 results

M&M on Friday reported 19% year-on-year (YoY) growth in its standalone net profit at INR 2,964 crore in its December quarter, while revenue from operations increased 20% YoY to INR 30,538 crore.

Standalone EBITDA during the third quarter saw a growth of 32% YoY to INR 4,810 crore.

M&M share price performance

Over the last one year, M&M shares have increased by 86.02%. Year-to-date (YTD), there has been a rise of 3.87% in the same. In the last six months, the price has grown by 19.29%, while over the past three months, it has increased by 10.73%. Finally, in the last one month, the price has risen by 2.87%.

M&M technical placement

The shares of M&M are standing strong on charts, being placed above all its significant exponential moving averages (EMAs) and oscillating near the 64 mark on the RSI, according to Trendlyne.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)