Mahindra & Mahindra shares rise on strong September sales: SUVs lead the charge

Shares of Mahindra & Mahindra (M&M) rose nearly 2% in morning trade on October 1, reaching ₹3,140. The surge came after the company reported impressive sales growth for September, particularly in its Sports Utility Vehicle (SUV) segment. This sales boost propelled M&M to be one of the top gainers on the Nifty index, marking a significant milestone for investors considering options to invest in stocks.

M&M September sales boost led by SUVs

M&M’s overall auto sales for September stood at 87,839 vehicles, including exports, which marks a robust 16% growth compared to the same period last year. Leading this growth was the company’s SUV segment, which showed a remarkable 24% increase in domestic sales, with 51,062 vehicles sold. 

In total, including exports, M&M sold 52,590 utility vehicles. Notably, exports in this category also saw an uptick of 25%, with 3,027 units sold, compared to 2,419 units in September 2023.

This strong performance in the SUV sector highlights M&M's strategic focus on its growing demand as the brand continues to solidify its leadership in this competitive market. For those looking to invest in stocks, this performance showcases the potential growth opportunities within the auto industry.

Farm equipment business remains steady

M&M’s domestic farm equipment segment also delivered solid results, with 43,201 units sold compared to 42,034 in the same period last year. Hemant Sikka, President of the Farm Equipment Business at M&M, remains optimistic about the future. He attributes the positive outlook to factors such as a strong Kharif crop, anticipated robust Rabi crop, and the upcoming festive season, which he expects will boost demand for tractors.

However, the company experienced a 10% decline in export sales within this division, which fell to 1,056 units from 1,176 in September 2023. Despite this setback, the overall positive performance in the farm equipment and automotive sectors has been encouraging.

Festive season optimism

Looking ahead, M&M is gearing up for the festive season with the launch of its much-anticipated Thar RoXX, with bookings opening on October 30. This, combined with the company’s strong SUV sales, is expected to drive investor confidence and demand further.

With shares up 80% since the start of the year, Mahindra & Mahindra’s consistent growth offers an appealing opportunity for those considering long-term investment in the automotive sector.