M&M's tractor business now worth twice as much as automotive division

The company's profit before interest and tax (PBIT) from the farm equipment segment rose 31 per cent in FY17 to Rs 25.62 billion

Mahindra & Mahindra (M&M), the country’s biggest tractor maker, has seen its market cap swelling by over Rs 100 billion since the start of the new financial year, giving it a valuation of Rs 1.03 trillion. The stock hit a new high of Rs 839 on Tuesday, showing a cumulative increase of over 12 per cent since the beginning of April.  

The only visible trigger for this price increase is the forecast of a normal monsoon by private forecaster Skymet, as well as the India Meteorological Department (IMD). Even though the company’s tractor division (farm equipment segment) is much