As per the latest information from the Bombay Stock Exchange (BSE), surpassing Tata Motors, Mahindra & Mahindra (M&M) has become India’s second-largest automaker by market capitalisation.
M&M’s Growth Trajectory – Market Cap Surge and Ambitious Expansion Plan
Driven by a 3% surge in its share price to reach a new 52-week high, the market cap of M&M stands at ₹3,63,980.89 crores.
Leading the pack is Maruti Suzuki, which has a m-cap of of ₹4,03,240.17 crores.
Emerging as the top gainer on the Sensex by market close, M&M continued its upward trajectory for the second consecutive session.
Globally known as being the largest tractor manufacturer by volume in FY24, extensive and ambitious plans have been outlined by M&M for expansion both domestically and internationally, as highlighted during its recent investor day presentation.
M&M announced its intentions to outpace industry average revenue growth by fiscal 2027, achieve a 15% increase in earnings before interest and tax margin, and attain a return on capital employed exceeding 30%. Notably, the surge in stock price coincided with this surge.
The company also plans a significant capital expenditure of ₹27,000 crores between FY25-27.
M&M’s lineup which already includes popular SUVs such as Thar, ScorpioN, and Bolero is planning to introduce six new SUV models by 2030 and also a total of 23 launches by the same year. This includes 7 electric vehicles under the Born EV series.
The company’s focus shall be on its automotive division and M&M aims to leverage its leadership in internal combustion engines, electric vehicles (EVs), commercial vehicles, and global markets.
Strong Financial Performance and Market Growth Highlights
Opened on Friday at ₹2,870.25, M&M’s reached a high of ₹2,945.00, and closing 2.20 per cent up at ₹2,927 on the BSE.
Outperforming benchmarks like the Nifty 50 and Sensex, year-to-date, M&M shares have risen by nearly 70 per cent and have surged by 112 per cent over the past 12 months.
Underscored by a 31.6% increase in net profit to ₹2,038.21 crores, the company’s robust performance in FY24 was underscored by an 11.24% rise in revenue from operations to ₹25,108.97 crores in the fourth quarter.
A dividend of ₹21.10 per share has been recommended by the M&M board of directors, amounting to 422 per cent of the face value of ₹5 each, with a record date set for July 5, 2024.
The month of May saw a 17% YoY increase in total vehicle sales, including exports, demonstrating strong market performance across its SUV and light commercial vehicle segments.
