Mahindra & Mahindra (M&M) has seen its stock surge by nearly 4% following the release of impressive October sales figures and optimistic ratings from prominent brokerage firms. The Indian automaker exceeded analyst expectations, fueled by record-breaking domestic SUV and tractor sales, underscoring M&M’s strong foothold in India’s growing automobile market.
October Sales Performance
Mahindra & Mahindra reported total sales of 96,648 vehicles for October 2024, surpassing forecasts. Of this total, 93,142 vehicles were sold in India, with the remaining 3,506 units exported. The robust performance not only reflects M&M’s market strength but also its adaptability in catering to both domestic and international demands.
| Sales Figures | Total Units Sold | Domestic Sales | Exports |
|---|---|---|---|
| Total Vehicle Sales | 96,648 | 93,142 | 3,506 |
| Utility Vehicles | 55,571 | 54,504 | 1,067 |
| Commercial Vehicles | 28,812 | 28,812 | 0 |
| Farm Equipment (Tractors) | 64,326 | 63,199 | 1,127 |
Record-Breaking SUV Sales
In October, Mahindra set a new milestone by achieving the highest-ever domestic SUV sales of 54,504 units. This significant growth is attributed to popular models and new launches that resonate well with customers. SUV sales, including exports, reached a total of 55,571 units, reinforcing Mahindra’s position as a leader in the SUV market.
Farm Equipment Success
The company’s farm equipment segment, particularly tractors, also recorded stellar sales, reaching 64,326 units—its highest-ever. This success reflects not only seasonal demand but also M&M’s dominance in the agricultural sector, which is expected to witness further growth in FY25 as the farm equipment market rebounds.
Analyst Upgrades and Broker Ratings
Following these strong sales, Kotak Institutional Equities upgraded M&M to a “buy” rating with a target price of ₹3,150. Analysts at Kotak noted M&M’s ability to excel in utility vehicles, commercial vehicles, and farm equipment, supported by the company’s innovative product lineup and focus on customer satisfaction.
Kotak’s Perspective: Kotak anticipates an upturn in M&M’s farm equipment sales, with a 180-basis-point market share increase for light commercial vehicles in the first half of FY25.
Goldman Sachs Forecast: Goldman Sachs also expressed optimism, setting a target price of ₹3,600 and highlighting M&M’s entry into electric vehicles and growing demand for its SUV models. The firm has included M&M in its APAC conviction list for growth-oriented stocks.
Strategic Positioning for Future Growth
M&M’s strong order backlog, coupled with new electric vehicle (EV) launches and a steady demand for SUVs, paints a promising picture for the company. Analysts expect M&M to continue outperforming its peers by capitalizing on demand trends and expanding its product offerings across vehicle categories.
Price Action and Market Sentiment
Shares of Mahindra & Mahindra closed 3.55% higher at ₹2,917.70, bolstered by positive broker recommendations and the company’s encouraging sales data. Investors are increasingly bullish on M&M’s prospects as the automaker continues to demonstrate resilience and growth.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor for investment recommendations.