Mahindra & Mahindra market cap crosses ₹1.5 lakh crore after SUV sales and Scorpio-N bookings

Mahindra & Mahindra market cap crosses ₹1.5 lakh crore after SUV sales and Scorpio-N bookings
  • Shares of M&M hit an all time high of ₹1,248 after its strong sales number came in with a 33% jump in passenger vehicles in July.
  • With this, the auto major’s market capitalisation crossed ₹1.5 lakh crore.
  • Also, M&M’s all-new Scorpio-N saw 1 lakh bookings within 30 minutes of booking commencement.
Billionaire Anand Mahindra owned Mahindra & Mahindra’s shares jumped on Monday to hit an all-time high after the company released its July sales figures, reflecting strong demand for SUVs.

M&M was the top gainer on benchmark indices Sensex and Nifty50 as its stock went up by over 6%. After this rise, its market capitalization crossed ₹1.5 lakh crore leaving behind Tata Steel, Coal India, Power Grid Corp and Bajaj Auto.

The stock has outperformed the market and given good returns to investors this year.
M&M % change
Last 1 month13%
Year to date48%
Last one year 62%
Investors went all out buying the company’s stock after good sales seen in its SUV models -- XUV700, Thar, Bolero and XUV300. In July, the SUV segment of M&M sold 27,854 vehicles.

The company exported 2,798 vehicles during the month.
Category July 2022July 2021% change
Utility vehicles27,854 units20,797 units34%
Cars+Vans199 units249 units-20%
Passenger Vehicles28,053 units21,046 units33%

SUV play is key for M&M growth ahead
“M&M is the best rural proxy play, with two of the three core businesses on a strong footing. The company is reorienting its SUV business to maintain its DNA and brand position to garner market share. We expect a 16% volume CAGR in passenger UVs over FY22-24,” said analysts at Motilal Oswal.

Apart from its existing brands, the newly launched Scorpio-N received a robust one lakh orders in just three hours of opening bookings.

Analysts believe the launch of new SUV Scorpio-N is important for the automaker to recover its market share.

“Scorpio brand, which had a 14% market share in the utility vehicle (UV) market in FY12, had fallen to ~3% in FY22. The launch success of this model is critical in MM’s overall market share gains,” a report by Elara Capital.

Some believe the SUV model will be as successful as the automaker’s XUV700 and Thar. “In our opinion, the Scorpio-N is going to be another blockbuster model from Mahindra’s stable and would follow the success achieved by M&M’s recent launches (XUV700 and Thar),” said analysts at Phillip Capital.

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