Mahindra briefly surpasses Tata Motors as India's second-largest automaker
Mahindra & Mahindra (M&M), a leading player in the Indian automotive industry, has briefly overtaken Tata Motors to become the country's second-largest automaker by market capitalization. This shift was confirmed by BSE data, which showed M&M's market capitalization reaching ₹3,63,980.89 crore. The surge in M&M's market value was largely driven by a record-high share price of ₹2,946 on June 14, making it the top gainer on the Sensex that day.
Mahindra shares outperform Tata Motors in 2024
M&M's shares have experienced a significant increase of nearly 70% this year, outperforming Tata Motors whose shares rose by 25%. This robust performance is attributed to M&M's promising growth prospects, and possible recovery in the farm equipment sector for FY25. The company's market value now places it as the second-most valuable auto manufacturer in India, trailing behind Maruti Suzuki with an mcap of ₹4,03,240.17 crore.
M&M's ambitious expansion plans
M&M has unveiled ambitious expansion plans both domestically and internationally. The firm aims to introduce six new SUVs and a total of 23 new models by 2030. Additionally, it plans to launch seven Born Electric vehicles by the end of the decade. To support these initiatives, M&M plans to invest ₹27,000 crore between FY25-27. The company wants to surpass industry average revenue growth by fiscal 2027 and increase its EBITDA margin by 15%.
M&M's financial performance and market share
In May 2024, M&M reported total sales of 71,682 vehicles, a significant 17% increase over the same period last year. By the end of FY24, M&M's market share in the SUV segment had risen by 130 basis points to 20.4%, while its share in light commercial vehicles saw an impressive increase of 350 basis points to 49%. The firm's net profit for the fourth quarter of FY24 stood at ₹2,038.21 crore, marking a 31.6% increase from the year-ago period.
