M&M Shares Up 4% Post Q4: Rs. 23 Dividend Declared; Analysts Recommend ‘BUY’ With TP of Rs. 3,700

Shares of Mahindra & Mahindra (M&M) surged 4.2% intraday on Tuesday, boosted by strong investor sentiment following the company's impressive Q4 FY25 results. The rally came after M&M reported a 25% year-on-year increase in revenue and an impressive 47% jump in EBITDA for the fourth quarter of FY25, with strong performance in both its auto and farm equipment segments.

M&M Shares Today

Mahindra & Mahindra shares today opened in green at Rs. 3,150, rising 4.2% higher than the previous close of Rs. 3,021.50. However, the shares dropped some of the early gains and are currently trading 1.65% up at Rs 3071.40 at the time of writing. Currently, M&M shares are trading almost near their 52-week high range and are up 42 % from their 52-week low price.

M&M Share Price Target

Nuvama Institutional Equities has reiterated its 'Buy' rating on Mahindra & Mahindra (M&M) with a target price of Rs. 3,700. The firm outlined that Q4 Q4FY25 EBITDA came in above estimates, signalling better-than-expected operational performance.
"We estimate revenue/core earnings CAGR would be 15%/18% over FY25-27E; this shall sustain RoIC at5% plus. Retain 'BUY' with an unchanged SotP-based TP of INR3,700 based on 25x core P/E and value of subsidiaries/investments at INR824/share." The research report was read.

The broking noted huge growth prospects for the company, especially in the auto segment, projecting a 16% CAGR in revenue driven by strong demand for key models like the Thar, XUV 3XO, and XEV.9e, backed by a healthy pipeline of upcoming launches.

For the broader business, Nuvama estimates revenue and core earnings CAGR of 15% and 18%, respectively, over FY25-27, which is expected to sustain Return on Invested Capital (RoIC) above 55%, underscoring long-term profitability.

Mahindra & Mahindra Q4 FY25 Results

Mahindra & Mahindra (M&M) reported a strong performance in its Q4 FY25 results. The company's total revenue jumped by 25% year-on-year to Rs. 31,350 crore. The automobile segment alone contributed Rs. 24,980 crore, showing a 25% growth, driven by a 17% increase in vehicle sales and a 7% rise in price per vehicle.

However, other income fell 90% to Rs 49 crore due to losses or write-offs on some subsidiary investments. Despite that, the company's adjusted net profit (PAT) increased by 22% to Rs. 2,440 crore, thanks to stronger operational performance.
The farm equipment segment, which includes tractors, also performed well. It saw a 23% rise in revenue, reaching Rs. 6,430 crore, mainly due to a 23% jump in volumes, though prices stayed flat.

EBITDA (profit before interest, taxes, etc.) rose sharply by 47% tos. 4,680 crore. This was supported by better margins in both the auto and farm businesses. The auto segment EBIT margin improved slightly to 9.2%, while the farm segment margin jumped to 19.4%.

Mahindra & Mahindra Declares Dividend

Alongside its Q4 FY25 results, Mahindra & Mahindra (M&M) announced a dividend of Rs. 25.3 per share, as per its stock exchange filing. The record date for this dividend payout has been fixed as July 4, 2025, meaning shareholders on record by that date will be eligible to receive the dividend.

M&M has maintained a consistent dividend payout history of rewarding its shareholders. In 2024, the company declared a dividend of Rs. 21.10 per share, while in 2023 and 2022, it paid Rs. 16.25 and Rs. 11.55 per share, respectively. Over the years, Mahindra & Mahindra stock has also undergone corporate actions such as a stock split in March 2010 and has issued two bonus shares, one in 2017 and another in 2005.

About Mahindra & Mahindra (M&M)

Mahindra & Mahindra Ltd, commonly known as M&M, is a top Indian multinational automobile and manufacturing company. Established in 1945, the company is headquartered in Mumbai, Maharashtra. M&M is part of the Mahindra Group, one of the largest business conglomerates in India. The company has a strong presence in the automotive, farm equipment, and financial services sectors and is known for its flagship vehicles like the Thar, XUV series, and Bolero and a growing portfolio in electric mobility.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.