Mahindra & Mahindra climbs 4% in 2 days as bargain hunters make a beeline

At 10:55 AM, Mahindra & Mahindra share price was 2.86 per cent higher, at Rs 2,792, on the BSE. In comparison, the 30-stock BSE Sensex index was trading 175 points, or 0.24 per cent higher, at 74,620

Mahindra & Mahindra share price: Auto major Mahindra & Mahindra's (M&M's) share price climbed for a second day in a row on Tuesday, as bargain hunting investors bought into the company's stock after it fell over 9 per cent in the last week. 

  At 10:55 AM, Mahindra & Mahindra share price was 2.86 per cent higher, at Rs 2,792, on the BSE. In comparison, the 30-stock BSE Sensex index, of which Mahindra & Mahindra is also a constituent stock, was trading 175 points, or 0.24 per cent higher, at 74,620.

  Shares of M&M declined by 9.28 per cent to close at Rs 2,667.80, on Friday, February 21, from a close of Rs 2,940.75 on Friday, February 14. 

  The company's shares have gained 4.34 per cent since Friday, February 21's close. Shares of Mahindra & Mahindra have climbed 3.14 per cent to hit an in intra-day high of Rs 2,794.60, so far in Tuesday's session. 

  Buying interest in the company's stock also came after M&M managed to increase its share in the domestic tractor market to 43.8 per cent in January on a year-on-year (Y-o-Y) basis. 

  Outlook strong for farm sector biz

    According to Hemant Sikka, president of the company's farm equipment business, Mahindra & Mahindra remains bullish on tractor outlook. 

  "I think the fourth quarter (Q4) is going to be a pretty strong one. We are looking at a 15 per cent growth in Q4, which will lead to a full-year growth guidance of about 7 per cent... We have not come out with the guidance for FY26. It will take a bit more time to see the early indications on monsoons, which we usually get by the end of April," Sikka said in a virtual interaction with Business Standard.

  Also Read: Our farm machinery sales to hit Rs 1,000 cr in FY25: M&M's Hemant Sikka   Sikka noted that the company has managed to grow its farm machinery business by 40 per cent on a Y-o-Y basis in the past two years, and it expects to cross the Rs 1,000 crore milestone for the business during this year.

  "In the last two years, we have grown our farm machinery business by 40 per cent Y-o-Y. And this year we will grow at around 20 per cent. So, we are very happy with the growth because in the last three years, our business has grown by almost 150 per cent. Therefore, this year we are likely to cross a very major milestone of ₹1,000 crore, and we are very happy with it," he said.

  Mahindra & Mahindra Q3 results

  The company reported a 20 per cent year-on-year increase in consolidated profit after tax (PAT) at Rs 3,181 crore in Q3FY25, on the back of strong auto and farm segment numbers that saw volumes grow by 16 per cent during the quarter. The company also posted a strong revenue growth of 17 per cent Y-o-Y at Rs 41,470 crore.

  Mahindra & Mahindra's auto quarterly volumes were up 16 per cent during the quarter to 245,000 units. 

  Moreover, the farm segment also did well; it saw the highest ever Q3 market share at 44.2 per cent, with a 20 per cent jump in volumes to 121,000 units. Farm sector PAT was up 11 per cent to Rs 996 crore on an 11 per cent rise in revenue to Rs 9,537 crore.