Shares of Mahindra and Mahindra are trading at Rs 1344.4, up 1.52 percent from the previous close on the BSE. The shares declined over 2 percent in early morning trade despite delivering strong revenue growth in the October-December quarter.

Share Market Live

NSE

Mahindra and Mahindra showcased strong growth in net profit and revenue. The company reported a net profit of Rs 1,528 crore, an increase of 14.5 percent from the same period last year when it was Rs 1,335 crore.

The company's revenue also saw a significant increase of 41 percent, reaching Rs 21,654 crore, compared to Rs 15,349 crore in the same quarter last year. This growth can be attributed to the company's strong performance across its various businesses.

Also read: Mahindra & Mahindra reports strong revenue and net profit in third quarter

Mahindra's margin also increased to 13 percent, compared to 11.7 percent in the same period last year, demonstrating the company's strong financial performance. These positive results reflect the company's successful efforts in adapting to the changing market conditions.

Here’s what brokerages said

Morgan Stanley has an overweight rating on the shares of Mahindra and Mahindra with the target price at Rs 1472 per share. As per the brokerage firm, M&M delivered well on market share, ROE expansion and shareholder value creation. There are no near-term catalysts as well.

Nomura has a Buy rating on the stocks of M&M with the target price at Rs 1718 per share.

As per the brokerage firm, the company can see an upside in the next few quarters from the EV segment, farm implements and investments. Future EVs are very promising; SUVs & farm Implements to be high-growth segments

Meanwhile, JP Morgan has an overweight call on the shares of M&M with a target price of Rs 1520 per share.

The Q3 results were broadly in-line with estimates. The headline EBITDA beat was driven by other segments, while auto+Farm EBIT was in-line. The auto segment margin was surprised positively, driven by operations leverage and better ASPS.

The farm EBIT margin improvement is slower-than-expected but better than peer Escorts. The management highlighted further upside from its growth gems in coming quarters, JP Morgan said in a note.

Goldman Sachs has a Buy call on the shares of Mahindra and Mahindra with the target price at Rs 1600 per shares. As per Goldman Sachs price hikes on high ASP products like Scorpio-N / XUV700 can be expected to support margin trajectory.

Meanwhile CLSA has downgraded the stock to 'outperform' from 'buy' with the target price at Rs 1583 per share as the company has seen a sharp run-up YTD.. As per CLSA the third quarter results were below expectations due to lower than expected tractor Ebit margin.

Also read: Zomato, Kotak Mahindra Bank, Mahindra and Mahindra: Monday's top brokerage calls