Shares of auto major Mahindra and Mahindra (M&M) jumped 2% to their day’s high of Rs 2,941 on the BSE after the company reported 13% YoY growth in its standalone net profit for the quarter ended September 30, 2024, to Rs 3,841 crore.This was above the Street expectations of Rs 3,581 crore.Revenue from operations in the reporting period increased 12% YoY to Rs 28,919 crore. Meanwhile, EBITDA for the July-September 2024 period stood at Rs 5,270 crore, while margins came in at 18.2% in the same period.Segment-wise, the auto business saw the highest-ever quarterly volumes at 2.31 lakh units, up 9%, which included record quarterly UV volumes at 1.36 lakh units.On a consolidated basis, profit for the second quarter jumped 35% YoY to Rs 3,171 crore, and consolidated revenues were up 10% YoY to Rs 37,924 crore.Should you buy, sell, or hold M&M's stock? Here's what analysts say:Goldman SachsGoldman Sachs has maintained a 'Buy' rating on M&M with a target price of Rs 3,600.Following a strong Q2 performance, the firm raised its tractor guidance and noted an upside potential for SUVs. As introductory price schemes phase out, Goldman Sachs sees more margin potential in M&M's automotive segment moving forward. Additionally, M&M has been included on Goldman Sachs' APAC Conviction List.BofABofA has maintained a 'Buy' rating on M&M with a target price of Rs 3,600.The report highlights a small beat in the latest quarter, with the tractor cycle showing strong signs of recovery. The momentum in the SUV segment is expected to continue, with upcoming EV launches contributing to growth. Additionally, BofA sees promising growth opportunities in the company's build-up phase.MacquarieMacquarie has maintained an 'Outperform' rating on M&M, setting a target price of Rs 3,441.The report describes Q2 as a strong quarter and expresses a bullish outlook. Macquarie has raised its tractor guidance and continues to support solid growth projections for SUVs. However, the report also notes that with the current momentum in demand, M&M could face potential capacity constraints for ICE SUVs in FY26.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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