Shares of M&M ended up 7.23 per cent at Rs 928.20 on Monday after touching a 52-week high of Rs 952.15 during the day.
Raising its price target to Rs 1,135 from Rs 1,010, CLSA said it continues to have a buy rating on the stock due to expectation of a synchronised recovery in its auto and farm businesses, and a change in capital allocation strategy that should drive significant expansion in return on equity.
Kotak Institutional has increased target price to Rs 1,000 from Rs 920. Morgan Stanley has maintained overweight rating with a target price of Rs 1,112. Haitong Securities has maintained outperform rating and raised target price to Rs 955 from Rs 719.
Nomura has increased the target price to Rs 1,165 from Rs 923, saying that the success of the new sports utility vehicle, share gains in light commercial vehicles and efficient capital allocation will further drive re-rating of the stock.
Jefferies, however, believes that the best of the tractor cycle and capital allocation actions are behind. It has reiterated underperform rating on the stock and revised target price to Rs 615 from Rs 540.
