M&M Shares Plunge 5% – Should Investors Brace for More Losses?

M&M shares fell 5.05% to ₹2696.95, breaking key support levels amid a broader market downturn. The stock recorded a high of ₹2844.10 and a low of ₹2690.45, with trading volume increasing significantly. Nifty and Sensex also declined, impacting M&M and its peers like Escorts Kubota and Esab India, while BEML gained 1.03%. Analysts maintain a “Buy” rating with a median target of ₹3646, suggesting a 35% upside.

However, futures trading lower with rising open interest hints at potential further decline. Key support levels to watch are ₹2738.67 and ₹2637.13, while resistance stands at ₹2893.12. Despite the dip, M&M has surged 52.69% over the past year, significantly outperforming Nifty.

 

CONTENT:

• M&M Shares Decline Despite Strong EV Launch Bookings

 

M&M Shares Plunge 5% – Should Investors Brace for More Losses?

Mahindra & Mahindra (M&M) shares fell 6% to ₹2,666.45 in intraday trading on Friday, marking their steepest single-day drop in seven months. The last comparable decline occurred on July 10, 2024, when the stock plummeted 7.8%, according to BSE data.

Over the past two weeks, M&M’s stock has declined by 17% from its February 7 level of ₹3,197.75, after reaching an all-time high of ₹3,276.30 on February 10.

On February 20, M&M’s board approved subscribing to the equity shares of its subsidiaries, Mahindra & Mahindra Financial Services Limited (MMFSL) and Mahindra Lifespace Developers Limited (MLDL), under their Rights Issues. The company also committed to acquiring any remaining unsubscribed shares. MMFSL plans to raise up to ₹3,000 crore, while MLDL aims to secure ₹1,500 crore through the Rights Issue.

M&M maintains leadership in multiple sectors, including farm equipment, utility vehicles, IT, and financial services. Despite the recent decline, its stock has surged 45% over the past year, outperforming the BSE Sensex and BSE Auto Index, which dropped nearly 4% during the same period.

Looking ahead, the passenger vehicle (PV) market faces uncertainty for FY26 due to affordability concerns, currency depreciation, and limited tax benefits for lower-income buyers. However, the premium and SUV segments are expected to perform well, with M&M forecasting 8% utility vehicle industry growth. Analysts at Nomura continue to favor M&M due to its strong SUV portfolio and growing presence in the EV market.

 

Mahindra & Mahindra (M&M) shares saw a decline of 5.05% on February 21, 2025, trading at ₹2,696.95, down from the previous closing price of ₹2,840.30. The stock breached its first support level of ₹2,738.67, signaling a bearish trend, with further downside potential if it falls below ₹2,637.13.

On the previous trading day, M&M opened at ₹2,745 and closed at ₹2,757.30, reaching a high of ₹2,844.10 and a low of ₹2,690.45. The company holds a market capitalization of ₹3,40,668.37 crore, with a 52-week high of ₹3,276.30 and a low of ₹1,790.

Compared to its peers, M&M faced a steeper decline, while companies like Escorts Kubota, Action Construction Equipment, and Esab India also saw losses. However, BEML registered a marginal gain. The broader market also trended lower, with Nifty and Sensex down by 0.40% and 0.56%, respectively.

Analyst recommendations for M&M remain positive, with a “Buy” rating. The median price target stands at ₹3,646.00, reflecting a 35.19% upside from the current price, with estimates ranging between ₹2,700.00 and ₹4,075.00 for the next year.

As of 10 AM, trading volume had increased by 12.04% from the previous day, indicating heightened market activity. Higher open interest in M&M futures, combined with a decline in futures prices, suggests continued bearish sentiment. Investors should closely monitor key support and resistance levels for potential trend reversals.

 

M&M Shares Decline Despite Strong EV Launch Bookings

Mahindra & Mahindra (M&M) has been in the spotlight due to recent stock volatility and its ambitious electric vehicle (EV) push. On February 17, 2025, M&M shares fell 5% to ₹2,692.75 on the Bombay Stock Exchange (BSE), marking a six-day losing streak with a 13% decline overall. This comes despite an impressive launch for its new electric SUVs, which secured 30,179 bookings on February 14, amounting to ₹8,472 crore in value. Anand Mahindra hailed the achievement, emphasizing strong consumer demand. However, market analysts cite general volatility and cautious investor sentiment as reasons for the stock’s decline.

M&M’s Q3 financials remain strong, with a 20% profit increase and a 17% revenue rise. Analysts maintain a positive long-term outlook, citing strong EV adoption and robust growth potential. Deliveries of M&M’s XEV 9e and BE 6 models are set to begin in mid-March, reinforcing the company’s strategic expansion into the EV segment.