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* Scaling up the more efficient vehicles: Looking ahead, MSIL plans to launch its first BEV (Battery Electric Vehicle) by 2025, with a total of six EV models anticipated by FY31, accounting for 15-20% of total sales. The powertrain mix is expected to consist of 15% BEV, 25% hybrid, with the remainder coming from fuel-efficient ICE (Internal Combustion Engine) vehicles, such as CNG, biogas, flex-fuel, and ethanol-blended fuel models. This strategic mix not only supports MSIL's market dominance but also aligns with broader carbon footprint reduction goals.

* Outlook: The long term growth story of the company is led by: 1) a large distribution network (3,863 sales outlets, 5000 service touch-points); 2) largest low emission product portfolio offering; 3) new/refresh launches in the Hybrid/ SUV and EV segment; 4) capacity expansion to (4mn units by 2030-31), 5) growing export volume (addition of newer model from UV segment) and increasing Nexa distribution network in rural market. We value the stock based on FY26E EPS to arrive at a TP of Rs. 14,338 with the BUY rating (27x FY26E EPS)

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