Mahindra & Mahindra (M&M) share price surged as much as 2.75% on Wednesday, November 27, after the auto player launched two new electric vehicles in SUVs namely BE 6e and XEV 9e. The new SUVs are built on a grounds-up revolutionary electric origin architecture INGLO and are powered by MAIA, the fastest automotive mind in the world. Should you buy auto giant stock M&M after the two new launches?
Mahindra & Mahindra Share Price:
After market hours of November 27, M&M shares ended at Rs 3004.35 apiece, up by 0.6% on BSE with market cap of Rs 3,73,599.58 crore. During the trading session, the stock jumped by 2.75% to hit an intraday high of Rs 3070 apiece. With that the stock is nearing its 52-week high of Rs 3,221.10 apiece. YTD, the stock is up by 76.4% on BSE so far.
Mahindra stock has a strong track record of bonus, splits and dividends in more than two decades.
Bonus Issue: The stock has delivered two bonuses. The first one of 1:1 ratio in September 2005, followed by second bonus issue of 1:1 as well in December 2017.
Stock Splits: Mahindra shares have only split once and that was in March 2010. The stock split ratio was of 1:2, where face value of Rs 10 each was cut to Rs 5 each.
Dividends: Mahindra stock has so far distributed about 26 dividends since May 2001, as per Trendlyne data. In the past 12 months, the company paid up to Rs 21.10 per share dividend.
Mahindra BE 6e, XEV 9e:
The Mahindra Group flagship company launched BE 6e starting at Rs 18.90 Lakh and XEV 9e starting at Rs 21.90 Lakh. These vehicles embody Mahindra's vision of "Unlimited India"- an era where Indian innovation and design not only challenge global benchmarks but set new ones, as per the filing.
With commanding exteriors and thoughtfully curated interiors, the BE 6e and XEV 9e set new benchmarks in aesthetics and functionality. The BE 6e flaunts an edgy, athletic silhouette and race-inspired agility, whereas the XEV 9e exudes sophistication with its suave SUV coupe design, blending indulgent luxury with dynamic performance.
Mahindra's go-to-market strategy for the Electric Origin SUVs will roll out in a phased manner in the latter part of January 2025. Deliveries are expected to commence towards the end of February or early March 2025, the statement stated.
Should You BUY Mahindra & Mahindra Share Price?
In its latest report on November 27, Emkay Global revealed that they had attended the unveiling of Mahindra's first two born EV SUVs-BE 6e and XEV 9e, and are impressed by the strong specifications/features and competitive pricing (introductory prices ~6% and 22%, respectively, below those of current top-selling models in the targeted ICE-SUV segments).
However, the brokerage added that though, the E-PV category as a whole continues to see slow offtake despite multiple new launches amid customer worries around charging infra and resale value, which is likely to get exacerbated by the intensifying launch action/likely competitive pricing in the EV industry over the coming 6-12 months."
Emkay's note added, "Our estimates are unchanged (~9% core EPS CAGR in FY24-27E); we retain REDUCE given that the best of the SUV launch cycle is now behind. M&M trades at ~27x Sep-26E core PER vs ~21.5x for MSIL and 24x for HMIL." The target price is set at Rs 2,700.
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