Mahindra & Mahindra gains 9% in 2 days on strong Q4 operational performance

An improving core business and possible course correction on capital allocation would drive stock performance as valuations are still cheap, analysts say.

Shares of Mahindra & Mahindra (M&M) gained 2 per cent to Rs 518.50 in the early morning deals on the BSE on Monday, surging 9 per cent in the past two trading days, after it reported a robust operational performance in the January-March quarter (Q4FY20).

The company reported a standalone net loss of Rs 2,500 crore, due to exceptional loss of Rs 2,800 crore on account of impairment on investments due to Covid-19 and others. It had posted net profit of Rs 849 crore in the year-ago quarter.

Standalone net sales for the quarter were at Rs 9,144 crore, down 35 per