Mahindra & Mahindra, one of India’s largest automakers, last week launched two new electric vehicles priced at about $25,000, challenging domestic and foreign rivals in the growing Indian EV market. The news led some analysts to become more bullish on the stock, with nearly 90% giving the company a buy or overweight rating, according to FactSet data. The company launched the BE 6e and XEV 9e models at a launch event in Chennai on Tuesday, priced at approximately $24,100 and $27,800 respectively. Both cars are built on Mahindra’s new all-electric platform called Inglo. This pricing strategy is particularly aggressive in a market where EV adoption is still low. According to data from Bank of America, electric vehicles currently account for only 2% of the 4.1 million vehicles sold annually in India, while in China they account for nearly a third. “Pricing is competitive, at least for the base version,” Citi analyst Arvind Sharma noted in a note to clients on Nov. 27. The Wall Street bank has a buy rating on Mahindra stock with a price target of 3,520.00 India For the rupee ($41), this implies an 18% upside potential. Citi’s Sharma added that future EV sales are not factored into the current price target, giving it room to grow in the future. The stock is listed on the National Stock Exchange of India and also trades over-the-counter in the United States and Germany. MAHM-IN 1Y line Mahindra & Mahindra says the vehicles will have a range of up to 682 kilometers (424 miles) if you opt for the larger battery. Tesla’s Model 3 is said to offer a range of 800 kilometers (436 miles), although the two companies measure their vehicles by different standards. Indian stockbroker Motilal Oswal also expressed optimism about Mahindra’s newly launched vehicles while pointing out some challenges. “These features combined with introductory pricing make them a really strong value proposition for customers,” Aniket Mhatre, equity analyst at Motilal, said in a note to clients. “While pricing is certainly competitive, given the lack of sufficient “It remains to be seen how customer interest plays out in terms of charging infrastructure,” Mhatre added, adding: “We remain cautious on incremental growth in this segment, at least in the short term.” He has a price target of 3,420 on the stock. rupee, which represents 15% upside and is also the median price target among all analysts covering the stock. Motilal Oswal predicts that Mahindra’s revenue will grow at a compound annual growth rate of approximately 13% in the next three years, and its adjusted earnings will grow at a compound annual growth rate of 16% (excluding electric vehicle sales). After the company launched the two products, investment bank Nomura’s Kapil Singh also removed his buy rating on the stock with a target price of INR 3,664 (up 23%). Tata Motors, another large automaker, currently dominates India’s small electric car market, accounting for about 70% of the market. The company sells vehicles with prices ranging from $10,000 to $20,000. Meanwhile, South Korea’s Hyundai Motor Co., India’s second-largest automaker by sales, recently listed its Indian unit.
An Indian automaker has just launched two electric cars priced at about $25,000. Analysts call the stock a buy | Real Time Headlines
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