Mahindra & Mahindra rallies 4%, hits 52-week high post Q4 results

Given the recent fiscal and monetary measures by Government of India and RBI, the company's management foresees the cost pressures in the economy to ease out.

Shares of Mahindra & Mahindra (M&M) hit a 52-week high of Rs 988, as they rallied 4 per cent on the BSE in Monday’s trade after the company reported a 17 per cent year-on-year (YoY) rise in standalone profit (before exceptional items) at Rs 1,167 crore for the March quarter (Q4FY22) compared with Rs 998 crore in the same quarter last year. After accounting for exceptional items, profit rose 427 per cent to Rs 1,292 crore from Rs 245 crore in the same quarter last year.

The stock of passenger cars & utility vehicles maker has surpassed its previous high of Rs 978.90 hit on November 17, 2021. It traded close to its record high of Rs 992 touched on August 30, 2018.

At 09:25 am; M&M traded 1 per cent higher as compared to 1.5 per cent rise in the S&P BSE Sensex. In the past one month, the stock outperformed the market by gaining 3 per cent, as against a 3 per cent decline in the benchmark index. In the last three months, the stock has surged 20 per cent as compared to 0.5 per cent fall in the Sensex.

In Q4FY22, M&M’s standalone net sales for the quarter stood at Rs 17,124 crore, up 28 per cent YoY, up 12.4 per cent QoQ. Standalone EBITDA de-grew 0.5 per cent YoY at Rs 1,946 crore with corresponding EBITDA margins at 11.4 per cent, down 327 bps YoY and down 50 bps QoQ.

M&M became No.1 in SUV revenue market share in Q4 and H2FY22, while farm equipment sector (FES) gained 180 basis points market share in FY22. With 170k+ bookings, the demand for the automotive product portfolio remains strong. FES delivered second highest full year PBIT despite market slowdown and steep commodity inflation.

Given the recent fiscal and monetary measures by Government of India and RBI, the management foresees the cost pressures in the economy to ease out.