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Mahindra & Mahindra Shares Rise 5% on Solid March Quarter Earnings

Mahindra and Mahindra shares rose 5% after the fourth-quarter data was released.

Shares of Mahindra & Mahindra (M&M) rose 5% to Rs 1,350 on the BSE in intraday trade on Monday after the company reported solid January-March quarter (Q4FY23) earnings, consolidated profit after tax (PAT) growth up 18%) to Rs 2,637 crore, thanks to the strong performance of its business. The company posted an after-tax profit of Rs 2,237 crore in the same period of the previous fiscal (Q4FY22).

The company’s operating income in Q4FY23 rose 31% to Rs 22,571 crore from Rs 17,237 crore in Q4FY22. On the operational front, EBITDA rose 44.5% to Rs 2,797 crore from Rs 1,936 crore in Q4FY22. Ebitda margin in Q4FY23 improved 120 basis points YoY to 12.4% from 11.2%.

Meanwhile, M&M posted a record annual net profit of Rs 10,282 crore, up 56% year-on-year. This was driven by successful large launches in automotive, solid growth in agricultural equipment, strong operating performance in financial services and value unlocked through monetisation/partnerships.

Analysts at ICICI Securities maintain their “buy” rating on M&M, tracking strong response to new product launches in the SUV segment, resulting in an order backlog of about 290,000+ units, followed by a phased increase in capacity, focusing on market share gains in the tractor segment, launching a range of new products was launched with a continued focus on capital efficiency.

Motilal Oswal Financial Services maintained its “buy” call with a target price of Rs 1,500 per share.

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