M&M joins Rs 1-trillion market-cap club; stock hits new high

Mahindra & Mahindra (M&M) has joined the elite club Rs 1-trillion market capitalization (market-cap) on the BSE, as its share price hit an all-time high of Rs 819 in early morning trade on Tuesday.

With the market-cap of Rs 1.01 trillion at 10:00 am; M&M stood at number 30th position in overall market-cap ranking, the BSE data shows. Currently, M&M stood just behind of Tata Motors, which has market-cap of Rs 1.08 trillion (include Tata Motors DVR).

Thus far in the month of April, M&M outperformed the market by surging 9% as compared to 4% rise in the S&P BSE Sensex. The company reported a 10% increase in total sales at 62,077 units in March, 2018 against 56,202 units for the same month last year.

Commenting on the outlook, M&M President, Automotive Sector, Rajan Wadhera, said: “We are particularly buoyed by the growth of our truck business, which has outperformed the industry. With three of our critical new automotive launches lined up in 2018-19, we are confident of increasing our market share in the utility vehicle space.”

Analysts at Motilal Oswal Securities expects demand outlook for FY19 is positive across segments for automobile sector, driven by a continued rural recovery, initial estimate of normal monsoon, and a pick-up in economic activity.

M&M is one of the most diversified auto companies in India. Its core businesses include manufacture of auto [Passenger Vehicles (PV), Commercial Vehicles (CV), three-wheelers, two-wheelers etc.] and farm equipment (tractors and other farm equipment)etc.