M&M shares rise following record SUV and tractor sales in October

Shares of Mahindra & Mahindra (M&M) surged over 5% on November 4 following an impressive monthly business update. The company reported a remarkable 25% year-on-year increase in SUV sales, with a record 54,504 units sold in October. This exceptional performance has prompted analysts to upgrade M&M's rating from 'Add' to 'Buy,' highlighting the company's robust growth across segments and improved return ratios.

Strong performance across segments

M&M's overall vehicle sales, including exports, reached an impressive 96,648 units for the month. Notably, domestic tractor sales also saw a significant boost, rising 30% year-on-year to 65,453 units. With three-wheeler sales growing by 5% and exports surging 89% compared to the previous year, it's evident that now is a prime time to invest in stocks of M&M.

Key takeaways

• Record SUV sales: M&M achieved its highest-ever monthly SUV sales of 54,504 units, marking a 25% increase year-on-year.
• Stock performance: By 2:30 PM, M&M's stock climbed to Rs 2,894, making it the top gainer on the Nifty index, showcasing a 68% year-to-date increase.
• Positive market sentiment: The company's strong performance, driven by successful product launches and strong brand equity, suggests that those looking to invest in stocks should consider M&M as a promising opportunity.

M&M's upward trajectory underscores its resilience and the potential for continued growth, making it a noteworthy choice for investors aiming to invest in stocks with robust fundamentals.