Volume upgrades, rural uptick, new launches boost M&M earnings outlook

The new launches of Mahindra & Mahindra expected to improve market share, which has been lagging its key competitors

Volume upgrades for its utility vehicle portfolio and expectations of robust tractor sales could help Mahindra & Mahindra post strong earnings growth over the next two fiscal years. The upgrades come on the back of better-than-expected sales of the recently launched multi-utility vehicle Marazzo. Given the strong response, analysts believe the product will sell about 4,000 units a month as against earlier expectations of 1,500-2,000 units per month.

The other trigger for the stock is new launches, such as the S201 — a compact sports utility vehicle (SUV) scheduled to be launched next month. Analysts at UBS believe that with