Mahindra and Mahindra (M&M) is trading higher by 1.4% at Rs 923, extending its previous day’s around 2% gain, on hopes for rising sales this month as part of the festival season.
The stock of a leading sports utility vehicle manufacturer has outperformed the market after announcement of September quarter results. Since October 25, the stock has rallied 12% on the BSE compared to 1.9% fall in benchmark Sensex.
M&M reported a healthy 29% year-on-year growth in its total automobile sales at 53,438 units in the previous month October, led by growth in passenger vehicles segment and LCVs.
Analyst at HDFC Securities believes that growth in the tractor segment will be critical to a balanced and sustained earnings growth. Tractor sales are expected to recover in the H2FY13 (October-March) with late monsoon revival boosting Rabi crop.
“M&M is going strong with volumes especially on automobile front and new launches in FY13 will add value to the company,” said analyst at IndiaNivesh Research said in recent report.
The stock opened at Rs 910 and hit a new high of Rs 927 on the BSE. A combined 1.04 million shares have already changed hands on the counter so far against an average 0.76 million shares that were traded daily in past two weeks.
