Shares of Mahindra & Mahindra jumped over 5 percent on November 4 after the company reported a robust 25 percent year-on-year surge in SUV sales, reaching a record 54,504 units in October—its highest-ever monthly figure.
By 2:30 PM, Mahindra & Mahindra's stock climbed nearly 3 percent to Rs 2,894, emerging as the top gainer on the Nifty index. With a robust 68 percent year-to-date surge, M&M has significantly outperformed the Nifty 50, which rose only 10 percent in the same period.
M&M's auto and tractor segments both achieved record monthly sales in October. The overall monthly vehicle sales, including exports, totalled 96,648 units. Domestic commercial vehicle sales were recorded at 28,812 units, while tractor sales shot up by 30 percent YoY to 65,453 units. Three-wheeler sales grew by 5 percent to 9,826 units. Exports surged 89 percent to 3,506 units compared to 1,854 in the same period last year.
Follow our live blog for all the market action
Veejay Nakra, President of the Automotive Division, M&M, said "We are excited to have clocked the highest-ever SUV sales of 54,504 vehicles in October, a growth of 25 percent and highest ever total volume of 96,648, a growth of 20 percent. The month began on a fantastic note with Thar ROXX garnering 1.7 lakh bookings in the first 60 mins, and the positive momentum continued across the SUV portfolio through the festive season."
Domestic tractor sales reached 64,326 units, a notable jump from last year's 49,336. Export numbers remained steady at 1,127 units, slightly up from 1,124 in October 2023.
"The tractor industry has seen very robust growth on the back of many positive factors coming together, notable being a very good monsoon, a good Kharif crop, high reservoir levels which will help in Rabi crops, and the government's announcement of higher MSP on key Rabi crops. With festive season providing momentum to positive sentiments, we expect demand to remain strong in the coming months," said Hemant Sikka, President of the Farm Equipment Sector, M&M.
Following the monthly business update, Kotak Institutional Equities upgraded M&M to a 'Buy' rating from 'Add,' noting the company's continued strength across segments and improved return ratios. "We expect M&M to continue to outperform industry growth across automotive and tractor segments, including domestic PV and CV segments, given successful newer launches and strong brand equity," the brokerage said.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
