M&M shares gain nearly 2% as brokerage firms turn positive; check full details

Shares of Mahindra & Mahindra rebounded in morning trade, rising nearly 2% to ₹2,712 apiece, recovering from a sharp 6% drop in the previous session. The scrip witnessed their biggest single-day fall in nearly 7 months during the last session.

As of 10.37 PM, shares of M&M are currently trading 1.01% higher at ₹2,696.20 apiece on the NSE.

Jefferies’ positive outlook comes after the stock has seen a sharp correction from its 52-week high over the last two weeks. Shares fell 9% last week after a 6% drop on Friday, amidst concerns surrounding Tesla's potential entry into the Indian markets and its impact on the company.

However, the brokerage firm experts anticipate Tesla's entry to have a limited near-term impact on M&M, citing the price gap in their portfolios and the EV policy’s lower duty benefits applying only to a limited number of high-priced vehicles.

Another brokerage firm Bernstein stated that while Tesla's imported EVs, allowed under the EV policy, would compete in a higher price segment than M&M's, minimising the near-term impact, the long-term effect remains. The extent will depend on Tesla's commitment to India, it added.

Mahindra & Mahindra reported a 19% increase in its standalone net profit to ₹2,964.31 crore for the three-month period ended December 2024. In the year-ago quarter, the post-tax profit was at ₹2,489.73 crore. Revenue from operations rose 20.3% to ₹30,538.23 crore in the latest October-December quarter compared to ₹25,382.88 crore a year back.

On a consolidated basis, profit after tax (PAT) rose 20% to ₹3,181 crore in Q3 FY25, compared to ₹2,658 crore in the corresponding period in FY24. Revenue rose 17% YoY to ₹41,470 crore.

Dr Anish Shah, Managing Director and Chief Executive Officer (CEO) of M&M, said, "Our businesses continue to demonstrate strength in execution. Auto and Farm delivered solid performance on market share and margins on the back of focused execution. The transformation at TechM is gathering momentum. MMFSL continues to balance asset quality and growth priorities, with GS under 4% on the back of strong AUM growth. Our Growth Gems are demonstrating steady progress towards their long-term objectives."