Rising tractor volumes drive gains for Mahindra & Mahindra stock

Fair valuation, Ford tie-up key to further upside

The Mahindra & Mahindra (M&M) stock gained over 1 per cent on Thursday, even as other auto stocks closed in the red. The company has multiple factors going in favour, such as improving tractor sales, volume uptick in its rural-focused portfolio, and upsides from the new joint venture (JV) with Ford.

Key near-term gains, however, are expected to come from its farm segment. Tractors volumes were better than expected in a seasonally strong month, posting an improvement as compared to the last few months.

Analysts at ICICI Direct Research believe M&M’s performance stood out among the auto pack on all