M&M: Tractor show, new launches could lead to rerating

Across product categories, M&M has indicated that it was able to sell half of the inventory

Ram Prasad Sahu  |  Mumbai 

The Mahindra & Mahindra (M&M) stock could see upsides given the outlook for its farm equipment business, new utility vehicle launches as well as valuations which are at the bottom of the list of large-cap automakers.  The March sales numbers, too, were better than expected due to higher tractor sales (which are more profitable) and traction in its commercial vehicles, which were up by 31-32 per cent year-on-year (y-o-y). The six per cent fall in utility vehicle (UV) sales was expected given the lack of new launches.  What helped cushion the fall was the disposal of ...

TO READ THE FULL STORY, SUBSCRIBE NOW AT JUST Rs 149 A MONTH

Key stories on business-standard.com are available to premium subscribers only.

LOGIN

EMAIL / USER NAME
PASSWORD
REMEMBER ME Forgot password?
LOGIN

Not a member yet ? Resister Now

Connect using any below

  • Don't lose the opportunity of saving $26.77 per month
  • Don't lose the opportunity of saving $26.77 per month
Total Amount
Rs. 0.00
To proceed, kindly select a subscription package

WHAT YOU GET

On Business Standard Digital

  • Access your subscription from anywhere. Be it your computer, tablet or smartphone using a browser or the App, Your Choice.
  • Access to exclusive content, features, opinions and comment, hand-picked by our editors, just for you.
  • Pick your 5 favourite companies. Get all the news upates at the end of each day through E-Mail.
  • Pick the industry that you want to track. And get a daily news letter specific to that industry. Cut out the clutter.
  • And stay on top of your investments. Track stock prices in your portfolio
  • Access 18 years of archival data

On Digital

  • Seamless access to WSJ.com with your Business Standard digital account.
  • Experience the best of the Journal's reporting, video and interactive features.
  • Read about the people and events shaping business, finance, technology, politics, technology and culture.
  • Stay informed with newsletters - an easy way to get WSJ content straight to your inbox - making life easier on your busiest days.
  • More business executives read the Journal globally than any other publication.
*Note :
Our Partners are proud to be associated with this initiative and will contribute Rs 100 x 6 months thereafter, standard rate of Rs 149 will be charged.
Offer valid for Indian residents only
Requires you to share personal information like PAN, Date of Birth, and Income.
*Annual saving on WSJ subscription price of US$ 347.88 (12 months @ US$ 28.99 per month)
* 1US$ = 67.50 INR.
*Please note that this offer is not valid if you are/were a registered/existing user on WSJ Digital

M&M: Tractor show, new launches could lead to rerating

Across product categories, M&M has indicated that it was able to sell half of the inventory

The Mahindra & Mahindra (M&M) stock could see upsides going ahead given the outlook for its farm equipment business, new utility vehicle launches as well as valuations which are at the bottom of the list of large cap auto makers. Further, the March sales numbers, too, were better-than-expected due to higher tractor sales (which are more profitable) and traction in its commercial vehicles, which were up by 31-32 per cent year-on-year. The six per cent fall in utility vehicle (UV) sales was expected given the lack of new launches. What helped cushion the fall was the disposal of BS-III inventory. Across product categories, M&M has indicated that it was able to sell half of the inventory valued at Rs 2,000 crore at discounts of up to 15 per cent and is still left with about 18,000 units. Given that not all of this will either be exported or be converted to BS-IV, the company would have to take a short-term hit.Analysts are, however, bullish on M&M's prospects given ... The Mahindra & Mahindra (M&M) stock could see upsides given the outlook for its farm equipment business, new utility vehicle launches as well as valuations which are at the bottom of the list of large-cap automakers.  The March sales numbers, too, were better than expected due to higher tractor sales (which are more profitable) and traction in its commercial vehicles, which were up by 31-32 per cent year-on-year (y-o-y). The six per cent fall in utility vehicle (UV) sales was expected given the lack of new launches.  What helped cushion the fall was the disposal of ... image
Business Standard
177 22