Morgan Stanley and Investec Remain Bullish on M&M with Target Prices of Rs 3,304 and Rs 3,220, Highlighting Strong Thar Demand

Morgan Stanley on M&M:

Maintains an “Overweight” rating with a target price of ₹3,304.

The current Thar 3-door model has a sales rate of 5,000 units per month.

With the ramp-up of the Roxx model, the Thar franchise could reach 8,000-10,000 units per month.

Gains from leverage should help counteract rising discounts in the core product lineup.

The success of Thar will solidify M&M’s position as the third-largest player in India’s passenger vehicle market.

Investec on M&M:

Maintains a “Buy” rating with a target price of ₹3,220.

The Thar Roxx bookings have exceeded previous records.

176,000 units were booked within the first hour of launch.

The new SUV launch further strengthens the brand’s position.

M&M is trading at attractive valuations of 28x FY26 estimated EPS.

EBITDA and ROE are expected to grow at a CAGR of 20% and 22%, respectively, between FY24 and FY26.