M&M: Tractor show, new launches could lead to rerating

Across product categories, M&M has indicated that it was able to sell half of the inventory

The Mahindra & Mahindra (M&M) stock could see upsides given the outlook for its farm equipment business, new utility vehicle launches as well as valuations which are at the bottom of the list of large-cap automakers. 

The March sales numbers, too, were better than expected due to higher tractor sales (which are more profitable) and traction in its commercial vehicles, which were up by 31-32 per cent year-on-year (y-o-y). The six per cent fall in utility vehicle (UV) sales was expected given the lack of new launches. 

What helped cushion the fall was the disposal of BS-III inventory. Across product categories, M&M