New Delhi. Automobile sector giant Mahindra & Mahindra Limited (M&M)'s quarterly results were quite impressive. In the fourth quarter of the financial year 2023-24, the company's net profit increased by 31.6 percent year-on-year and stood at Rs 2,038.21 crore. Mahindra & Mahindra's net profit in the same quarter a year ago was Rs 1,548.97 crore.

Due to this excellent result, analysts and investors are quite bullish on Mahindra shares. While the overall market environment looked cold in early trade on Friday, Mahindra's stock saw a strong rise. It jumped more than 7 percent and reached the level of Rs 2,522.00. If we talk about the high, then at one time it had touched the level of 2,554.10.

Target Price of Mahindra & Mahindra (M&M)

Target Price of Mahindra & Mahindra

Most brokerage firms are bullish on Mahindra's stock. Nuvama Institutional Equities has maintained a 'Buy' rating on Mahindra. It has also raised the target price to Rs 2,760 per share from Rs 2,380 earlier.

Domestic brokerage Motilal Oswal Financial Services has described the business prospects of Mahindra & Mahindra as very good. Motilal Oswal has also maintained a 'Buy' rating on M&M shares. It has raised the target price to 2,720.

Another domestic brokerage Kotak Institutional Equities is also very positive about Mahindra. Kotak says that Mahindra's automotive division is doing very well and it also expects tractor demand to improve from the second quarter of the current financial year. It has raised the target price for Mahindra from Rs 1,800 to Rs 2,550.

How were the sales in the March quarter?

Mahindra & Mahindra's revenue from operations in the March quarter grew 11.24 percent year-on-year to Rs 25,108.97 crore. During this period, the automobile segment performed very well and sales grew 14 percent year-on-year to 2,15,280 units.

Equipment used in farming is also an important part of Mahindra's earnings. But, the results of tractor sales in the March quarter were disappointing. Mahindra was able to sell only 71,039 units of tractors in the March quarter. There has been a decline of about 20 percent on an annual basis. However, brokerage firms believe that it will improve soon.