Jefferies raises ‘buy’ to M&M, ‘holds’ Maruti Suzuki as global headwinds appear to favor tractor business

Jefferies after the strong performance of the Nify Auto package last month expressed optimism about Mahindra and Mahindra (M&M). The brokerage reiterated its ‘buy’ call on the tractor company with a target price of Rs 3,700, implying a gain of 23 percent from the last close.

On the other hand, in relation to Maruti Suzuki- the country’s leading automaker- the global brokerage has maintained a target share of Rs 10,900 apiece.

This is a drop of about 2 percent from the previous close of Rs 11,081.45 apiece on the BSE.

The brokerage believes that given the current market and global trends, M&M is a better investment case compared to Maruti Suzuki. The brokerage is of the view that strong industrial demand will do well in the stock.

M&M is gaining market share across tractors, SUVs and light commercial vehicles (LCVs) while Maruti is slipping in PVs.