The shares of the leading automotive manufacturer gained 1.5% to ₹ 1,623.15 apiece from the previous close price after its subsidiary signed a contract with Airbus to supply 5000 metallic components.
Mahindra & Mahindra Ltd shares closed in green with a gain of 1.18% to ₹ 1,618 apiece on Thursday. The company has a market capitalization of ₹2,01,097 crores.
As per the report, Mahindra Aerostructures subsidiary of Mahindra & Mahindra has signed a contract with Airbus Aerostructures GmbH to manufacture and deliver metallic components for all Airbus commercial aircraft models, including the best-selling A320 family.
Under the contract, Mahindra Aerostructures is to supply close to 5,000 varieties of metallic components to Airbus in Germany from its manufacturing base in India. As well as contract adds to the existing company’s programs to deliver parts directly to Airbus at their facilities in Toulouse, France.
Mahindra Aerostructures is a wholly-owned dropdown subsidiary of Mahindra & Mahindra Ltd. It is based in India and produces metallic parts and assemblies for leading aerospace majors.
Looking into the Mahindra & Mahindra Ltd financials, its revenue has grown by 15 percent yearly, from ₹29,870 crore in Q2FY23 to ₹34,436 crore in Q2FY24. In the same time frame, net profit has slightly declined by 18 percent from ₹3,021 crore to ₹2,484 crore.
Mahindra & Mahindra Ltd shares have gained 4 percent in the last six months and 23 percent in a year.
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 increased to 8.13 percent.
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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
