Top 3 Reasons That Led To 4.95% Gain In Shares Price Of Mahindra & Mahindra

Mahindra & Mahindra (M&M) shares witnessed a gain of 4.95 percent on BSE to close the day at 1000 and with this touched a new 52-week high as the company on May 28, 2022 registered a significant jump in its net profit for the quarter ended March 31, 2022.

M&M exceeded Street expectation when it reported its standalone net profit Rs 1,192 crore in Q4 of 2022 FY, a surge of five-fold as compared to Rs 245 crore profit that it reported an year ago, as per the statement released by the company. Below are some of the factors that led to the surge in shares prices of M&M:

1. Strong Q4 Results

The company also achieved yet another landmark when it found itself holding the top spot in the revenue market share of sports utility vehicle (SUV) segment. It is worth noting that the company's revenue also jumped 28% to Rs 17,124 crore in the current financial year as against Rs 13,356 crore reported an year ago. It also accomplished its biggest ever standalone revenue in the segment of auto and farm at Rs 55,300 in the period under review. It also witnessed robust growth in the previous fiscal year reporting 77% growth y-o-y. The company's farm export volume reported at 17,500 tractors registering 66% growth.

2. Should You Buy Shares of Mahindra & Mahindra

Share price of M&M on the NSE was recorded at Rs 1000 share apiece with a gain of 4.95% while the prices of share remained at Rs 1000 share apiece with a gain of 4.95%. According to BSE India website, the 52-week high is 1011.45 and the 52-week low is 671. With today's surge. Shares of M&M touched a new 52-week high of 1000.00 on the heels of high Q4 net profit. Analysts expects a bullish view on M&M stock with a target price of Rs 1,145 as the company registered better than estimated Q4 earnings. You may consider buying the shares of M&M as they have maintained an upward trend since last year. A dip in the prices registered in March earlier this year when the shares lost 5.70% on March 7 on NSE. The downward trend in shares prices began late February and persisted till March 7, 2022.

3. Excise Duty Cut And Export Duty On Steel Inputs

Excise duty cut and export duty on steel inputs: Recently, government has announced cut in the excise duty on fuel and imposed export duty on steel inputs. It will lead to a rise in the supply of such essential raw materials in the domestic market and it would consequently benefit the manufacturing companies and auto players. The government's move to curb steel and iron exports will prove advantageous for auto industry as it would boost availability at a lower price. Steel is a key component used in the auto industry extensively.

4. About Mahindra & Mahindra

M&M is a leading Indian multination conglomerate headquartered in Mumbai. It has operation in more than 100 countries. It has amassed a strong presence in agribusiness, aerospace, aftermarket automotive components, construction equipment, farm equipment, and defence, among others. M&M was incorporated in 1945 by brother JC Mahindra and KC Mahindra and Malik Ghulam Muhammad in Punjab's Ludhiana to trade steel.