M&M now India’s second most valuable auto company, m-cap crosses ₹3.63 lakh crore

Mahindra and Mahindra Ltd (M&M) on Friday surpassed Tata Motors to become India’s second most valuable automobile company in terms of market capitalisation. The company stands only behind market leader Maruti Suzuki.

M&M’s shares gained 3% to record a new 52-week high of ₹2,946 per piece on the NSE, helping the automaker’s market capitalisation to surpass Tata Motors.

Its market capitalisation stood at ₹3,63,545 crore at around 3:15 pm, higher than ₹3,29,738 core of Tata Motors. Maruti Suzuki India’s market-cap stood at ₹4,03,667.75 crore.

M&M’s stock was among the top gainers on the benchmark index NIFTY50 index on Friday. The shares were up for the second day in a row on Friday, and has gained 5% in the past two sessions.

The stock has performed well in both short and long term periods, with the shares rising sharply by 70% so far in the calendar year 2024, and are up 55% over the last three months. In the last one-month period, they have gained 30%.

The auto major’s stock has given stellar returns of nearly 115% to its shareholders over the past year, and has skyrocketed more than 260% in the past three-year period.

M&M has generated net cash worth ₹4,411 crore from its auto segment post capex and investments in financial years 2022 to 2024, while the figure from its farm segment is reported at ₹6,376 crore, and that from the services segment at ₹6,916 crore.

Further, the auto giant’s board of directors recommended a dividend at the rate of 422%, that is at ₹21.1 per equity share of ₹5 each for the financial year 2024, subject to approval of its shareholders at the company’s 78th Annual General Meeting (AGM) to be held on July 31, 2024.

Shares of Mahindra & Mahindra were trading 2.18% higher at ₹2,924.05 apiece on the NSE at 3:15 pm.