Goal: ₹3,347

CMP: ₹2,793.25

Mahindra & Mahindra (M&M) launches the Thar Roxx which is more practical while offering the lifestyle off-roader character of the Thar 3-door. The product is significantly different, Roxx cannibalizes the Thar 3-door to some extent and will attract additional customers from the mid-SUV segment due to price overlap with better features.

M&M continues to enjoy a strong order book of ~178,000 units (up from ~220,000 units in Q4-FY24), of which ~42,000 units are for Thar and the launch of Thar Roxx should build on this. M&M’s recently launched XUV 3XO has received a good response. M&M will continue to have a healthy launch pipeline as the company plans to launch 9 ICE SUVs (including 6 new launches and 3 mid-cycle upgrades), 7 BEVs and 7 LCVs by 2030. Driven by a strong order book and new product launches, we expect M&M to continue to outperform industry growth in FY25E as well.

We are building SUV volume CAGR of 18.6% for FY24-26E with total Revenue/EBITDA/Adj.PAT CAGR of 13.5/21/16.3%. We are keeping Add with TP at ₹3,347 as M&M is trading at implied core PE of 24.6x/21.1x FY25E/FY26E EPS. We have tweaked our FY25/26 EPS by about 0.5%.