M&M beats Tata Motors to becomes India's second most valuable automaker

21 Jun, 2024

Mahindra & Mahindra LTD (M&M) is now India’s second-largest auto company in India, standing just behind Maruti Suzuki in terms of market value. It overtakes Tata Motor to grab this position. According to BSE Data, the recorded mcap of M&M stood at ₹3,63,545 crore against the Rs 3,29,738 crore mcap of TATA Motors.

Speaking of M&M shares, they gained a 3% hike and were valued at ₹2,946 per piece on the NSE, the 52-week high. The overall value of M&M share price has experienced a surge of 70% in the calendar year 2024 so far and 55% in the last three months. The previous period's gain is 30%.  

They are one of the top gainers on the NIFTY50 index and demonstrated a price hike two days in a row on 14th June 2024. The shares of this auto giant managed to give 115% return to its shareholders in the past year and 260% in the last three years, establishing itself as a wise investment. 

In the Indian auto sector, M&M is considered a leader with its plush and robust SUVs like Thar, Bolero, and ScorpioN. During the Q4 of FY24, M&M recorded a profit of ₹ 2,038 crores and 32% YoY growth against the revenue of ₹ 1,549 in FY23. EBITDA for March Q4 FY24 stood at ₹ 3,446 crore against the ₹2,831 crore in March Q4 FY23, resulting in 22% YoY growth. 

The unit sold in March Q4 FY24 was 21.5 lakh and the present open SUV booking is 2.2 lakh. During 2022-2024, M&M has successfully generated a net cash worth ₹4,411 crore from the auto segment only after the capex and investment. Its farm sector unit, Mahindra Tractors, generated cash worth ₹6,376 crore while its service sector generated cash worth ₹6,916 crore. Its’ farm units are already the largest tractor manufacturer in the world. 

The future of M&M seems as promising as its present as the company has six new SUVs due for launch by the end of 2030 and even introduced a total of seven Born Electric vehicles by the end of the current decade. In addition, the auto giant aims to roll out ₹ 27,000 crore capex during the FY25-27 period.