Mahindra and Mahindra Stock Surges: Q3 Results and Analyst Recommendations

Mahindra and Mahindra Stock Surges

VoM News Desk | February 15, 2024 | 11:47 AM IST | Breaking News | Follow on Google News

Mahindra and Mahindra Stock Surges: Q3 Results and Analyst Recommendations

Mahindra and Mahindra Stock Surges: Q3 Results and Analyst Recommendations

Mahindra and Mahindra (M&M) witnessed a second consecutive day of positive trading as its share price surged almost 5% in morning trade on the BSE. The boost followed the declaration of its December quarter results. Opening at ₹1,683.10, the stock reached ₹1,734.70, reflecting a 4.7% increase. By 10:55 am, it traded 3.78% higher at ₹1,720.30 on the BSE.

Strong Q3FY24 Performance: Key Financials

Mahindra and Mahindra reported a consolidated net profit of ₹2,658.40 crore for Q3FY24, marginally lower than ₹2,676.56 crore in the same quarter last year. However, the standalone PAT surged by almost 61% YoY to ₹2,453.98 crore. Standalone revenue from operations witnessed a robust 17% increase, reaching ₹25,288.51 crore for Q3FY24.

Analyst Views and Recommendations: Positive Outlook

• Kotak Institutional Equities: Maintained an ‘add’ call with a target price of ₹1,800, citing M&M’s well-executed strategy, maintaining leadership positions, improved return ratios, and readiness for the EV transition.
• Nuvama Wealth Management: Maintained a ‘buy’ call, raising the target price to ₹2,080. Expects sustained revenue and core earnings growth, supporting a high RoIC of 35% plus.
• Sharekhan by BNP Paribas: Maintained a ‘buy’ rating, revising the target price upward to ₹1,853. Emphasized M&M’s pan-India presence, strong market share in the tractor market, and positive outlook for the auto segment.

Considerations and Cautionary Notes

While positive sentiments surround M&M’s performance, analysts caution against potential challenges such as uneven monsoons affecting volume estimates for the farm equipment segment and external factors like raw-material cost trends. Analysts highlight the importance of closely monitoring capital allocation strategies to ensure continued positive returns.

VoM News Desk

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