M&M shares hit new high for 2nd straight session after healthy Q4 results; 31% upside seen in auto major stock

For the second straight session, Mahindra and Mahindra (M&M) shares jumped nearly 9 per cent in two days and have also touched a record high of Rs 1036.5 apiece on the BSE intraday. The company on Saturday reported the above-estimated earnings in the March quarter of fiscal 2021-22 (Q4FY22).  

The stock on Tuesday breached the previous record high of Rs 1011.5 per share touched on May 30, 2022. It gained over 4 per cent intraday on the BSE today and is trading as the top Nifty50 gainer in an otherwise volatile market. 

M&M’s consolidated PAT (Profit After Tax) after EI grew by 48 per cent to Rs 2,237 crore in Q4FY22 as compared to Rs 1513 crore, the company said in a regulatory filing on Saturday. Similarly, its consolidated revenue stood at Rs 1990 crore in the March quarter, up 21 per cent year-on-year.  

The success of the new launches coupled with production ramp-up as the chip-supply situation eases, to drive market share gains in the core SUV segment with Scorpio Refresh to further aid demand momentum, domestic brokerage firm ICICI Securities said.  

The brokerage said that the Management remains focused on creating a diversified EV portfolio with 17 new products (FY24 onwards) including LCVs/3Ws other than SUVs and the company is also open to value unlocking in the EV space by getting a strategic partner to invest. 

YES Securities raised the target multiple of core business by a notch to 14x (v/s 13x) led by sustained results in global subs and an improved cash deployment strategy of no incremental investments in the Auto/Farm business. It maintained BUY with revised a target of Rs 1,115 apiece (Upside 12%). 

Global brokerage firm CLSA continues to be bullish as it maintained a Buy rating for a target price of Rs 1257 per share (an upside of 31%), even Nomura maintained a Buy rating and raised its target to Rs 1308 from Rs 1160 per share. (an upside of 16%). 

The stock at around 11:28 AM was trading nearly 4 per cent higher to Rs 1036.5 per share on the BSE as compared to a 0.24 per cent rise in the S&P BSE Sensex during the same period.