Recommended by Trade Brains Portal

The optimism was reflected in the BSE Sensex, which opened at 82,574.55, surged to 82,669, and closed at 82,445.21, up 256.22 points, or 0.31%. The Nifty Bank index was above the 57,000 mark and reached its all-time high of 57,049.5 and closed at 56,839.60, up 261 points or 0.46%.

We recommend two Mahindra Group stocks to trade today (10 June)—one from the automobile sector and the other from financial service.

Mahindra & Mahindra Ltd

Current price: ₹3,085

Target price: ₹3,550 in 12 months

Stop-loss: ₹2,853

Why Mahindra & Mahindra Ltd is recommended

Established in 1945, Mahindra & Mahindra is the most diversified automobile company in India. In addition to two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, tractors, and earthmovers, the group is present in over 20 industries, including financial services, auto components, information technology (IT), and other industries.

M&M holds a 22.55% revenue market share in the SUV segment, and is the market leader in the tractor segment with a 43.3% market share. Its footprint is spread across more than 100 countries, with 69 manufacturing facilities.

Mahindra & Mahindra holds a strong position in its scalable growth gems category of business and targets a valuation of $2-3 billion in each of its segments (logistics, hospitality, real estate, last-mile mobility, trucks and buses, etc.). In its emerging growth gems category of business, the company targets $1 billion in each of the segments (aerostructure, cars, etc).

M&M continues to hold the second position in India’s SUV market by volume with a 20% growth. In the electric SUV and electric passenger vehicle segments, it holds the No. 1 position. It’s also second in the country’s farm equipment market, with a compound annual revenue growth of 9.3% in FY25.

Mahindra & Mahindra is planning for a capacity expansion for its Thar vehicle—from 9,500 units to 11,000 per month, and for its 3XO model from 9,500 to 11,000, apart from creating new platform capacity at its Chakan plant for 120,000 units per annum. The company is also planning for a greenfield plant for a new set of products from FY28.

In May 2025, its overall auto sales stood at 84,110 vehicles, a growth of 17%, including exports. In the utility vehicles segment, Mahindra sold 52,431 vehicles in the domestic market, a growth of 21%, and 54,819 vehicles overall, including exports. Domestic sales of commercial vehicles stood at 21,392 units.

Risk factor

India’s automotive industry is highly competitive with both domestic and international players, which can lead to pricing pressures and affect profit margins. Besides, the automotive industry is cyclical, which poses additional challenges as demand for vehicles, particularly in the commercial segment, is closely tied to economic conditions.

Mahindra & Mahindra Financial Services Ltd

Current price: ₹284

Target price: ₹315 in 12 months

Stop-loss: ₹268

Why Mahindra & Mahindra Financial Services is recommended

Founded in 1991, Mahindra & Mahindra Financial Services is one of India’s leading non-banking financial companies (NBFCs) catering to a diverse customer base, including rural and semi-urban areas. Its assets under management (AUM) stands at $14.1 billion, with a presence spanning 516,000 villages and 8,000 towns across 27 states and seven Union Territories. Mahindra & Mahindra Financial Services partners with more than 6,000 dealers and 10 original equipment manufacturers, serving 11 million customers nationwide.

The company’s diversified financial products include vehicle loans, financing for small and medium enterprises (SMEs), personal loans, insurance broking, housing finance, fixed deposits, and mutual fund schemes. In FY25, its AUM increased 3.6% to ₹60,741 crore from ₹58,647 crore in FY24. Total income grew 16% year-on-year to ₹18,530 crore, and profit after tax rose 16% to ₹2,261 crore.

The company’s loan book recorded a growth of 17% on-year, reaching ₹1,16,214 crore. Cash and cash equivalents were at ₹1,830 crore, doubling in a year. Its loans and advances surged to ₹1,23,514 crore, a 16% increase from a year earlier. Long-term provisions remained stable, reflecting a good sign of recovery.

Additionally, Mahindra & Mahindra Financial Services has maintained stable asset quality with credit cost standing at 1.3%, net interest margin at 6.5%, and gross stage 3 (GS3) at 3.7%. The company continues its efforts to target resilient customers, streamline its underwriting processes, and enhance collection efficiencies through analytics-driven bounce prediction, efficient stockyard management, etc.

On the diversification front, the company’s SME segment recorded a 48% growth in disbursement in FY25, holding a 5% share in overall disbursement. Tractors exhibited one of the strongest performances, increasing 3%, followed by passenger vehicles, which rose 8%, holding 10% and 41%, respectively, in overall disbursement.

Risk factor

Potential defaults and an increase in non-performing assets, particularly in rural lending segments, present a credit risk to M&M Financial Services. Although the company has a robust structure for managing liquidity, it remains susceptible to liquidity issues due to its reliance on multiple funding sources, particularly during volatile market conditions.

Market recap: 9 June

The Nifty 50 had a gap-up opening at 25,160, which was also the day’s high, and traded on a flatter note throughout the day. The Nifty index closed above all four 20/50/100/200 EMAs, at 25,103.20, up by 100 points or 0.4%, and had an RSI of 49 in the daily time frame.

Among the top sectoral performers, the Nifty Smallcap 50 index led the gains with 166.8 points or a 1.87% increase, closing at 9,108.15. Five-Star Business Finance, which rallied 10%, was the top small-cap gainer following RBI’s rate cut. IIFL Finance surged 8%, and Multi Commodity Exchange of India gained 7.25%.

The Nifty PSU Bank index followed the lead with a gain of 108.15 points or 1.52%, closing at 7,208.45, with Bank of India, Bank of Maharashtra, and Indian Bank gaining up to 4%. Nifty Next 50 index also gained, closing at 68,843, up 850.65 points or 1.25%, with Hyundai Motor, Intergloble Aviation, Cholamandalam Investment, and PFC surging up to 4%.

On the sectoral front, the Nifty Realty index was the only gauge in the red, closing at 1,038, down 1.45 points or -0.14%, with profit bookings seen in Brigade Enterprises, Sobha, Prestige Estates, and Macrotech.

Asian markets were also trading on an optimistic tone and opened higher on Monday as the US and China resumed trade negotiations, with China reportedly granting approvals for the export of rare earths and the US’s Boeing beginning commercial jet deliveries to China.

Among the Asia-Pacific markets, Hong Kong’s Hang Seng index gained the most with a surge of 1.63% or 388.89 points, closing at 24,181.43, followed by South Korea’s Kospi index, which climbed 1.55%. The Shanghai index was up by 0.43%, and Japan’s Nikkei at 225, gaining 0.92%.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.