This Mahindra Group stock which deals in the business of automobiles with a presence across 2-wheelers, 3-wheelers, CVs, PVs, tractors, and earthmovers is in focus after the company announced an EV Manufacturing & Battery Assembly facility in Chakan.
Stock Price Movement
With a market capitalization of Rs 3,88,148.87 crore, on Tuesday, the shares of Mahindra & Mahindra Ltd touched a day’s high of Rs. 3,135 which is 0.84 percent higher than the previous closing price of Rs. 3,108.85 apiece. The stock reiterated to Rs. 3,096.45 from the day’s high and was down by 0.40 percent. This stock has delivered around 92 percent return in the past year and thus outperformed the nifty index in the same period.
What happened
The company’s stock was in focus after they announced a state-of-the-art manufacturing and battery assembly facility at its Chakan plant which is dedicated to producing Electric Origin SUVs.
The plant is located within Mahindra’s greenfield hub which is water-positive and fully powered by renewable energy. They have allocated Rs. 4,500 Crores of its Rs. 16,000 Crore investment for the facility in the F22-F27 investment cycle. The plant features over 1,000 robots, AI-driven
automation, and Industry 4.0 technology for the plant to ensure high-quality production. Their cutting-edge battery assembly line integrates patented processes, ensuring durability and safety. This facility is to strengthen its commitment towards sustainable manufacturing and to align with India’s COP26 target of 2030.
Financial performance
The company’s revenue surged 10 percent, increasing from Rs 34,436 crore in Q2FY24 to Rs 37,924 crore in Q2FY25. However, net profit increased by 35 percent from Rs 2,484 crore to Rs 3,361 crore in the same period.
Revenue segmentation
In Q2FY25, Mahindra & Mahindra’s revenue consists of Automotive which contributes around 55.84 percent, and Farm Equipment contributes around 21 percent. In the services segment, financial services contribute around 11.3 percent of the revenue, and the remaining 11.86 percent are from Industrial business and consumer services.
Most of the company’s profit is earned through Automotive which contributes around half of the bottom line, Farm equipment contributes around 28 percent, financial services around 12.6 percent, and the remaining 9.2 percent from Industrial business as of Q2FY25. However, despite the automotive contribution to profits being higher, farm equipment has a better profit margin among others.
Company profile
Mahindra & Mahindra Limited which was founded in 1945 and headquartered in Mumbai, is an Indian multinational conglomerate with a portfolio including automotive, farm equipment, financial services, and technology.
The company is known as the world’s largest tractor manufacturer and India’s top SUV producer. Their business model focuses on innovation, and customer-centric solutions, leveraging R&D, and holds a global presence in over 100 countries.
Mahindra aims to drive positive change through its products and services while improving agricultural productivity and providing reliable transportation solutions across urban and rural landscapes.
Written by Santhosh S
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 losse
