Mahindra & Mahindra Beats Tata To Become India's 2nd Biggest Car Maker


Rohit Kulkarni

Rohit Kulkarni

Jun 19, 2024


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.

Mahindra & Mahindra Beats Tata To Become India's 2nd Biggest Car Maker

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.


Rohit Kulkarni
Rohit Kulkarni
  • 993 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online