The shares of this leading automobile manufacturer fell by 4.2 percent to ₹1,885 on the BSE after the company’s promoter entity sold a stake via a block deal.
At 1:45 p.m, Mahindra & Mahindra Ltd. shares were trading at ₹1,892 per share, down 3.90 percent from the previous close price on the stock exchange. The company has a market capitalization of ₹2,35,804 crore.
The company’s promoter group entity, Prudential Management and Services Private Ltd., sold 0.9% of the total equity, or 1.1 crore shares, on the exchanges on Thursday. The total transaction value is worth ₹2,184 crore at a price of ₹1,924 per share.
In February, Mahindra recorded an overall growth of 24% in auto sales, with a total of 72,923 vehicles, including exports. Within the Utility Vehicles segment, Mahindra achieved a domestic sales growth of 40%, selling 42,401 vehicles. The total sales in this segment, including exports, amounted to 42,941 vehicles. Additionally, domestic sales for commercial vehicles in the same month reached 22,825 units.
In January 2024, Mahindra Aerostructures, a subsidiary of Mahindra & Mahindra, entered into an agreement with Airbus Aerostructures GmbH to produce and supply metallic components for all models of Airbus commercial aircraft, encompassing the popular A320 family.
Mahindra & Mahindra Ltd. shares have gained 21 percent in the last six months and 47 percent in a year.
As of the December quarter’s shareholding pattern, Prudential Management & Services Private Limited held an 11.64 percent stake in the company, constituting a part of the overall 19.33 percent stake. Foreign institutional investors held a 40.86 percent stake, while domestic institutional investors held a 26.26 percent stake.
The company’s profitability ratios have improved over the years, with the return on capital employed at 12.66 percent, the return on equity at 18.24 percent, and the company’s net profit margin increasing to 8.13 percent.
Looking into the Mahindra & Mahindra Ltd. financials, its revenue has grown by 15 percent yearly, from ₹30,621 crore in Q3FY23 to ₹35,299 crore in Q3FY24. In the same time frame, net profit has slightly declined by 0.5 percent from ₹2,994 crore to ₹2,977 crore.
Mahindra Group is one of the largest groups, with a presence in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology, and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality, and real estate.
Written by Omkar Chitnis
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