M&M's market capitalisation had briefly overtaken that of Tata Motors to become India's second most valuable automobile company, according to data from Bloomberg.
Automotive major M&M is the top Sensex gainer in trade on a day the Mahindra group has scheduled its Investor Day. For the year so far, shares of Tata Motors are higher by 25 percent while M&M shares are a whopping 70 percent.
The car company's Investor Day presentation said it plans to introduce six new SUVs by 2030, and a total of 23 launches by 2030. M&M also plans to introduce seven Born Electric vehicles by end of the decade.
Based on FY24 volumes, the company is world's largest tractor maker, and has already laid out ambitious plans to scale up in the domestic as well as overseas market. India's tractor segment has been growing at a CAGR of 7.3 percent for the past 15 years, and the company believes there is significant headroom for growth for M&M.
M&M Investor Day presentation also said the company intends to rollout a total capex of Rs 27,000 crore between FY25-27.
Investors have been very bullish on M&M stock given its promising growth outlook and a potential recovery in the farm equipment business for FY25.
For the month of May, Mahindra & Mahindra's total sales surged to 71,682 vehicles, a substantial 17 percent rise over the corresponding period last year, inclusive of exports.
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In May end, brokerage firm Bank of America Securities also upgraded its rating for M&M shares to 'buy' citing the automaker's multiple growth levers. BoFA was also the first brokerage that sees the stock surpassing the Rs 3,000-mark within the next 12 months as it assigned a price target of Rs 3,050 for M&M.
Taking that into account, its no surprise that shares of M&M are heading closer to that mark as they hit a record high of Rs 2,946 in trade today.
BoFA Securities anticipates multiple growth catalysts for Mahindra & Mahindra (M&M) to materialise over the next 12-18 months. The brokerage remains optimistic about M&M's core business, which is bolstered by market share gains in the SUV segment and a potential turnaround in the tractor business.
By the end of FY24, M&M's SUV market share rose by 130 basis points to 20.4 percent, while its share in the light commercial vehicles segment increased by 350 basis points to 49 percent. The tractor segment also saw a market share gain of 40 basis points, reaching 41.6 percent.
BoFA Securities also highlighted the promising future contributions from M&M's subsidiaries, alongside the company's strong management, ambitious growth strategies, and commitment to sustainability as key positives.
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