Automobile major M&M’s shares surged past the four-digit mark to hit new highs today, despite a weak broader market. M&M shares rose over 3% 1,033.95. On this occasion, Anand Mahindra took the advice of APJ Abdul Kalam when the former President inaugurated a company facility.
“In 2019, M&M’s share price had fallen sharply from its all-time high 984. At our annual leadership conference that year, I reminded my team of the advice of the late President Kalam when he inaugurated Mahindra Research Valley. ‘Take the Hill’, he said, means dare to dream,” Mahindra tweeted.
“So at the end of the conference I requested the whole team to ‘Take the share price hill – bring the share price back to its previous high. By our 75th anniversary, let’s look at a return to a share price of 984. We did it first’ And we can do it again.”
The latest jump in M&M share prices has been attributed to better-than-expected quarterly earnings from the automaker. On Saturday, Mahindra & Mahindra reported a nearly five-fold jump in standalone profit 1,192 crore for the quarter ended March 31, 2022. Revenue up 28 percent 17,124 crore in the reporting period as compared to 13,356 crore in the March quarter of FY 2011.
Mahindra said in a tweet, ’75th anniversary deadline has been missed. But only for a year. New leadership team took the lead and today our stock closed at round no. 1000—a new high,” referring to Monday’s stock price when the shares were down. 1,000 for the first time.
In a note, domestic brokerage Motilal Oswal said the automaker’s “Q4 performance was above our estimate as a strong recovery in the auto business made up for the weakness in the tractor business.”
“Management has guided for single digit growth for the tractor industry in FY13. It is witnessing a reduction in rural tension as there was a tremendous increase in pace during Navratras in March 22 due to wheat exports and no unseasonal rains. After the ban on export of wheat, the pace has slowed down a bit.
Motilal Oswal maintains its buy rating on M&M with a target price of 1,150/share.