M&M shares among top Nifty 50 gainers; UBS upgrades saying Tesla entry not a threat

Shares of Mahindra & Mahindra Ltd., the manufacturer of passenger vehicles and tractors are the top gainers on the Nifty 50 index on Wednesday, March 5, after brokerage firm UBS upgraded the stock.UBS upgraded Mahindra & Mahindra to “buy” from its earlier rating of “neutral.” However, it marginally cut its price target on the stock to ₹3,300 from ₹3,460. The revised price target also implies a potential upside of 27% from current levels.

The brokerage called the 19% correction in M&M’s stock over the last month on the back of EV-related newsflow and Tesla’s potential entry in the Indian markets an “overreaction.”

UBS expects M&M’s volumes to grow by 9% in financial year 2026 led by strong demand for its SUVs and the launch of its Electric Vehicles. Its SUV segment too may see high-single-digit volume growth.While the farm equipment business is expected to do well, the plans of Tesla to enter the Indian market is not a major threat for M&M, according to UBS.

For the month of February, M&M’s tractor sales went up by 18% from last year to 25,527 units, which was also higher than the CNBC-TV18 poll of 24,225 units.

Out of the 41 analysts that have coverage on M&M, 39 of them have a “buy” rating on the stock, while one analyst each have a “hold” and “sell” rating.

Shares of Mahindra & Mahindra are trading 4.3% higher at ₹2,726.3. The stock is down 17% from its peak of ₹3,270.