Citi has maintained a Buy rating on Mahindra & Mahindra (M&M) with a target price of ₹3,520, indicating a potential upside of 16.6% from the current market price (CMP) of ₹3,019.40.
The brokerage acknowledged a slight slowdown in the sequential pace of growth but highlighted positive indicators for the agricultural segment, including healthy reservoir levels, higher minimum support prices (MSP), and favorable farmer sentiment. Citi noted that good progress in Rabi crop sowing and a healthy Kharif harvest are likely to support strong demand for tractors.
Citi also pointed out that volume volatility in the coming months could reflect fluctuations in inventory levels. However, the overall outlook for M&M remains positive, supported by strong fundamentals in its core agricultural and automotive segments.
Investors will closely watch the company’s ability to sustain growth in key segments as it navigates potential short-term fluctuations in demand.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.