M&M shares rise 3% after Thar ROXX launch. Here’s what analysts say

Shares of auto-maker Mahindra & Mahindra (M&M) on Friday rose over 3% to its day's high of Rs 2836.60 on BSE after the company on Thursday launched its new 5-door SUV Thar ROXX.

“Mahindra & Mahindra Ltd., India’s leading SUV manufacturer, proudly presents Thar ROXX – ‘THE’ SUV, a category disruptor set to break norms and redefine the SUV landscape in the country. With a starting price of ₹ 12.99 Lakh, the Thar ROXX embodies the Mahindra boldness and unconventional spirit. Designed and engineered to turn heads and deliver a refined drive and powerful yet safe performance, the Thar ROXX conquers all terrains while offering an array of luxurious features,” the company said in a filing to the exchanges.

The new Thar ROXX will be available in 6 variants namely MX1, MX3, AX3L, MX5, AX5L, and AX7L and the prices start from Rs 12.99 lakh (Ex-showroom) going up to Rs 20.49 lakh for the AX7L model.


The prices for MX5 and AX7L 4-wheel drive variants will be announced later.

The company has also said that the bookings for the Thar ROXX will open from October 3 and test drives will start from September 14.

Also read: Sentiment sours on growth, turns to FMCG for a bounce

Here is how brokerages view the update:

Morgan Stanley: Overweight| Target price: Rs 3,304

Morgan Stanley maintained its Overweight rating on M&M with a target price of Rs 3,304.

With the Thar Five-door launch, M&M is aiming to be the number 1 Brand in >1,250k SUV segment.

The global brokerage firm said that it found the Thar five-door package impressive and M&M has shown good success in its past launches while expecting the three- and five-door variants to collectively clock 8-9k unit sales/month. Morgan Stanley has maintained the view that M&M will be the fastest-growing PV company and see a strong jump in sales in coming months, driven by festive demand.

Nomura: Buy| Target price: Rs 3,417

Nomura maintained a buy rating on M&M with a target price of Rs 3,417.

The global brokerage firm said that Thar Roxx has the potential to redefine urban SUVS and its sales could go up to 8-10k units/month. Initial response is likely to be strong as 50k bookings are expected to come in on the first day of booking. There could be high cannibalization with the Thar 3-Door variant also and Nomura expects sales of 10k/month for the Thar Family in FY26. M&M has an ambition to make the Thar Family the no.1 SUV brand, implying 15-18k units/month.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)