Mahindra & Mahindra Overtakes Tata Motors in Market Value

Key Highlights:

• Mahindra & Mahindra surpassed Tata Motors in market value, now ranking second after Maruti Suzuki in India.
• M&M's market cap is Rs 3.63 lakh crore, and Tata Motors is Rs 3.30 lakh crore (BSE data).
• M&M's stock rose 3% to Rs 2,945, closing at Rs 2,927, up 2.2%.
• M&M's stock is up 112% in a year, Tata Motors 72%; Maruti Suzuki leads with Rs 4.03 lakh crore cap.
• M&M plans big investments in SUVs and electric vehicles; targets mid-to-high teens growth in FY25.

Mahindra & Mahindra Ltd surpassed Tata Motors Ltd in market capitalisation, becoming the country's second most valuable automaker after Maruti Suzuki India Ltd.

On Friday's intraday trade, M&M shares climbed by about 3% to a record high of Rs 2,945. The shares closed at Rs 2,927 when the markets closed, up 2.2% from the previous level.

Meanwhile, Maruti Suzuki's shares finished at Rs 12,825.60 on Friday, with a market capitalisation of Rs 4.03 lakh crore.

According to BSE data, M&M's market value on Friday evening was Rs 3.63 lakh crore, while Tata Motors' was Rs 3.30 lakh crore.

Tata Motors' stock price stayed practically unchanged at Rs 993.40 today. M&M stock has increased almost 112 per cent over the last year, surpassing the larger Nifty 50 market. Tata Motors shares have increased by nearly 72 per cent in the previous year.

By the end of the decade, the SUV player expects to have a portfolio of seven electric vehicles and nine ICE vehicles. The company also intends to extend its tractor business into countries in ASEAN and Western Europe.

By the end of FY2026, the manufacturer intends to increase its SUV manufacturing capacity to 864,000 units from the present 588,000 units. A substantial portion of the capacity augmentation will be for electric vehicles.

M&M has excelled in the passenger vehicle market in recent years thanks to its excellent SUV range. The company anticipates mid-to-high teen growth in FY25, whereas the market is forecast to expand in the low single digits.

The manufacturer intends to invest over Rs 27,000 crore in the automotive business over the next three years to support new model launches and capacity expansion. It will also invest Rs 5,000 crore to improve its position in the local tractor market.

Currently, the index includes 33 stocks. The top constituents by weightage are Bajaj Auto, Tata Motors Ltd, Maruti Suzuki India Ltd, Mahindra & Mahindra Ltd, Exide Industries Ltd, Bosch Ltd, Samvardhana Motherson International Ltd, and Eicher Motors Ltd.

Also Read: Tata Motors Gears Up for Comeback in Small Commercial Vehicle Segment

CMV360 Says

Mahindra & Mahindra becoming India's second most valuable automaker shows it's growing strong. Investors trust M&M because they're investing in electric vehicles and expanding globally.