M&M shares reach record high following XUV 3XO launch
Mahindra & Mahindra (M&M) shares experienced a significant surge today, rising over 4% to reach an all-time high of ₹2,152 per share. This increase came after the company's launch of its feature-packed compact SUV, the all-new XUV 3XO. The new vehicle is competitively priced starting at ₹7.49 lakh and is set to rival popular models such as the Maruti Suzuki Brezza, Tata Nexon, Kia Sonet, and Hyundai Venue.
M&M aims for leadership in compact SUV market
Following the XUV 3XO launch, M&M's leadership team expressed their ambition to become a leading player in the compact SUV market within three years. "We are number five in that sub-segment that is the size of six lakh and we hope to get number two or number one position in that," said Jejurikar, Executive Director and CEO- Auto and Farm Equipment Sector, M&M. This goal reflects the company's strategic focus on expanding its market share.
Analysts maintain 'buy' recommendation for M&M
Investec analysts have maintained their 'buy' recommendation for M&M shares and have set a target price of ₹2,200. This suggests an increase of over 2% from the current level. They anticipate that the XUV 3XO launch will enhance M&M's market share in the compact SUV segment and fortify its overall SUV franchise. "M&M remains our top pick due to its strong earnings momentum, driven by successful product launches," the analysts noted.
XUV 3XO features and order details
The XUV 3XO will be offered in both petrol and diesel versions with various transmission options including a 6-speed manual, automatic, and AMT. M&M has announced plans to begin accepting both online and offline orders starting May 15 with deliveries set to start from May 26. The new model will be manufactured at M&M's Nashik facility where its predecessor was produced. The compact SUV comes equipped with features such as a panoramic sunroof and Level-2 ADAS safety features.
