M&M has announced its fourth quarter results, posting a 32% year-on-year increase in profit to Rs 2,038 crore in the year-ago period.
Mahindra & Mahindra reported strong performance across multiple business segments in FY24, according to a company press release. The farm has increased market share in a declining industry.
With GS3 at record low levels, financial services have made significant strides in asset quality. Growth Gems made good progress in his 5x challenge and continued to unlock stats.
M&M (Mahindra & Mahindra Ltd.)
Mahindra & Mahindra Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 286,328.73 Crore) operating in Auto sector.
Major Products/Sales Segments of Mahindra & Mahindra Ltd. includes Light Vehicles, Medium & Heavy Commercial Vehicles, Jeeps, Passenger Cars and Others Operating Profit and Service Revenue for the fiscal year ending March 2023.
Market’s reaction
Shares of Mahindra & Mahindra (M&M) rallied up to 7.7% to hit a fresh 52-week high of Rs 2,554.75 as its overall March quarter numbers managed to beat Street estimates on most fronts leading to target price hikes and upgrades.
Global brokerage firm Jefferies upgraded M&M to buy and also raised the target price to Rs 2,910. It has also upgraded FY25-26 EPS by 16-21% while noting that M&M’s SUV portfolio continues to strengthen.
M&M’s Dividend Provision
Auto major M&M on Thursday announced a dividend of Rs 21.10 per share (422%) with a face value of Rs 5 to be paid to eligible shareholders from July 31 onwards.
“Dividends on ordinary shares (shares) for the year ending March 31, 2024 may be recommended by the board of directors and declared at the annual general meeting and thereafter distributed by such shareholders or their delegates. The payment/remittance will be made until July 31, 2024,” the company said in a stock exchange filing.
The shares of M&M were trading nearly 1% higher at Rs 2,323 around 3 pm on BSE today, hitting its new 52-week high of Rs 2,338.
Quarter 4 of M&M
In the past 3 months and 1 year, the counters have increased by 24.42%, 37.65%, and 100.001% respectively.
Year-to-date, the counter has increased by 48.32%. The XUV 700 and Scorpio maker’s operating profit for the January-March period of FY2024 increased by 9% to Rs 35.45 billion compared to Rs 32.456 billion in FY 2023.
M&M stock rose 8% to a record high as the target price was raised to 2,910.
Is investment in M&M worthy?
Even though the order book went through a kind of correction phase at the beginning of the year, Mahindra and Mahindra are the top choice for me as we have seen margins remain stable. However, only light cars and light SUVs.
Future Plans of M&M
Mahindra Group announces plans to invest Rs 37,000 crore in the auto sector over the next three years, with a focus on launching 23 new vehicles by 2030. The investment includes new ICE SUVs, BEVs, and light commercial vehicles.
The company emphasizes the importance of ICE models in the short term while investing significantly in the EV segment.
The expansion plans also include enhancing manufacturing capacity and remaining open to future mobility trends, including hybrid vehicles.
The company welcomes India’s new EV policy and emphasizes its commitment to the ‘Make in India’ initiative.
