Target: ₹3,420
CMP: ₹2,899.85
Mahindra & Mahindra unveiled XEV 9e and BE 6e, its Born Electric vehicles (EVs), in Chennai on November 26, 2024. MM’s indigenously designed Inglow platform seems to be versatile and scalable as it is modular. Deliveries are scheduled from late February 2025 to March 2025
We were particularly impressed with the multiple first-in-class features offered in both these products. These features, combined with the introductory pricing, make them a truly strong value proposition for customers. Though the pricing is certainly competitive, it remains to be seen how customer interest plays out given the lack of adequate charging infrastructure in the country.
We, hence, remain cautious on the incremental volumes from this segment, at least in the near term. We estimate M&M to post a CAGR of about 13/16/15.5 per cent in revenue/EBITDA/PAT over FY24-27E. While M&M has already exceeded its set target of 18 per cent RoE in FY24, it maintains this target going forward as it aspires to balance between strong growth and healthy returns.
We maintain a Buy rating on M&M, with a target price of ₹3,420, based on Sep’26E SOTP.
