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M&M hits new high on strong Q4 results

The stock hit a new high of Rs 895, up 3%, extending its 2.2% gain on Tuesday on the BSE in otherwise weak market.

SI Reporter  |  Mumbai 

XUV 500
Photo: Twitter (@MahindraXUV500)

Shares of (M&M) hit a new high of Rs 895 per share, up 3%, extending their 2.2% gain on Tuesday on the in an otherwise weak market, after the company reported a strong 50% year on year growth in consolidated net profit at Rs 11.55 billion in March 2018 quarter (Q4FY18). It had profit of Rs 7.7 billion in the same quarter last fiscal.

The company’s total revenue rose by 24% to Rs 133.55 billion during Q4FY18, compared to Rs 107.95 billion in the year-ago period, boosted by strong sales across tractors and utility vehicles.

In Q4FY18, the domestic automotive volume for the company grew 20% while the domestic grew 44% over the previous year quarter, said in a statement.

On outlook, the company said economic activity is expected to gather pace as the transitory effects of implementation of the goods and services tax (GST) recede. This outlook will also be lifted by tailwinds from normal rainfall with the weather bureau forecasting a 'normal' monsoon for the third successive year in its first stage long range forecast.

While the spatial and temporal distribution remain to be seen, well spread out rainfall is likely to have a salutary impact on the overall demand conditions. However, rising crude oil prices, which have already risen noticeably, call for greater prudence, it added.

“Management expects volume uptick to persist in FY19, with growth for UV industry pegged at 15%, for CV industry at 10-12% and for industry at 8-10%. To support volume, new products have been planned in UVs (3 new launches: U321, S201 and Y400), CVs (multiple launches in 7.5-16.2T segments) and 3Ws in FY19,” analysts at Emkay Global Financial Services said in result update with ‘buy’ rating on the stock and 12 month target price of Rs 960 per share.

At 09:30 am; shares of was trading 2.6% higher at Rs 891 on the BSE, as compared to 0.58% decline in the S&P Sensex. The stock surpassed its previous high of Rs 887.95 recorded on May 7, 2018 on the in intra-day trade.


First Published: Wed, May 30 2018. 09:41 IST
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