Mahindra & Mahindra has grown 54% in the last 1 year. Here’s how | Tech US News


Brokerage firms are betting on Mahindra & Mahindra as the stock should find. This is because Mahindra has been growing steadily over the years, seeing double-digit growth in the last few years, making great cars and tractors for customers, and working on reducing costs and increasing margins. . Here’s how M&M’s have evolved and why you should bet on them:

Photo: M&M

M&M Share Price: Mahindra & Mahindra (M&M) was one of the first few companies to get listed on the stock exchange on January 1, 1999 at just Rs 20.75 per share. Since then, here’s how prices have grown so far:

  • January 2006- 128 Rs
  • January 2009- Rs.72
  • January 2012- Rs.346
  • January 2016- Rs.600
  • January 2019- Rs.728
  • January 2021- Rs.829
  • November 2022 – Rs.1280

In all these years prices have increased by about 6,000% and 38% in one year. If you had invested in M&M just one year ago in November 2021, your investment would have increased in value by 54%. The company has grown manifold over the past few years and recently reported its highest ever quarterly standalone and consolidated revenue. Some of the reasons for its growth and rapid growth are:

Expected Price Target: Nomura has set a price target of Rs 1,616, while Goldman Sachs has estimated the price to rise to Rs 1,640 per share.

So how did M&M’s grow so fast?

Photo: M&M

1. People have historically loved M&M’s passenger vehicles and farm equipment: M&M’s net profit this year was Rs 2,090 crore, up 46% from last year’s profit of Rs 1,433 crore. M&M also sold 75% more vehicles this year than last year. As of November 1, 2022, they have 2.60 lakh bookings for their SUVs that are yet to be delivered to customers. This includes 13,000 units of the XUV300, 20,000 units of the Thar, 13,000 units of the Bolero family, 80,000 bookings for the XUV700, and 1.30 lakh bookings for the new Scorpio-N.

2. The new 2022 models performed brilliantly: M&M launched cars like Scorpio-N in June 2022 which turned out to be a blockbuster hit for M&M. Scorpio-N crossed 1 lakh bookings worth Rs 18,000 crore within 30 minutes on the first day itself. Although the product is quite popular, M&M has delivered more than 1.30 lakh units of Scorpio-N and Scorpio Classic.

M&M has also launched new SUV models. (Photo: Getty)

3. Increase in Productivity: As M&M has seen strong demand for its vehicles and customers are facing long wait times, M&M is increasing its production capacity. M&M had a manufacturing capacity of 29,000 SUVs per month from January to March 2022. But they expect to increase it to 39,000 SUVs per month by March 2023 and 49,000 SUVs per month by March 2024.

4. Increasing Margins in Automated Business: M&M’s margin in the automotive sector increased to 6% from 3.7% as they reduced fixed costs with various cost reduction initiatives, eliminated introductory prices for the Thar and XUV 700, and grew through operational leverage. Observed. M&M’s tractor sales grew nearly 10% year-on-year (y-o-y) during the festive season and had a market share of 41.4% in tractors in FY23 till October.


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