Strong utility vehicle growth trajectory to drive M&M's FY23 performance

Revival in tractors, improvement in supply, and margin gains are other key triggers for the auto major

Robust demand trends in the utility vehicle (UV) space, improving tractor sales, turnaround in performance of subsidiaries, and better capital allocation are positives for automotive major Mahindra & Mahindra (M&M). Brokerages have revised their earnings expectations upwards and expect the automotive manufacturing corporation to achieve 18-20 per cent growth in revenue and earnings over the next two years.  

The key trigger for the stock will continue to be volume traction in automobiles, even as the tractor segment is witnessing some revival. Although chip shortage continues to be an overriding concern, gradual easing and rising order books have helped the company report