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.
