Mahindra & Mahindra's (M&M) share price soared to an upper circuit of 10% on Monday after the company reported a 42% YoY jump in its Q3 net profit at Rs 1,268 crore against Rs 891.5 crore in the year-ago quarter.
Revenue of the firm also grew 11% YoY to Rs 21,625.95 crore from Rs 19,430 crore in the corresponding quarter last year.
M&M stock opened 2.59% higher at Rs 888, also its intraday low, against its previous close of Rs 865.60. The stock gained 10% to hit a new 52-week high at Rs 952.15.
M&M stock trades higher than 5, 20, 50, 100 and 200-day moving averages.
The share has risen 15% in one week and 19% in a month. Year-to-date, the stock is up 27%.
Market capitalisation of Mahindra & Mahindra rose to Rs 1,14,572.62 crore. The stock hit a 52-week low of Rs 245.80. Share of the carmaker, with Rs 5 face value has risen 62% in one year.
Company's (Ebitda) came in at Rs 3,520.4 crore, down 1% YoY. Ebitda margin came in at 16.3% for the quarter as compared to 18.4% reported in Q3FY20.
The firm also announced the appointment of Manoj Bhat as the group chief financial officer with effect from April 2, 2021.
Sharekhan also retained Buy rating with a revised price target of Rs 1000 and said," Mahindra and Mahindra+MVML earnings to grow by 35.8% YoY in FY22E and 15.1% YoY in FY23E, driven by 16.7% CAGR during FY2021-FY2023E in revenues and 120 bps increase in operating profit margin. We remain positive on Mahindra and Mahindra's fundamental growth prospects and hence, maintaining a Buy rating on the stock."
Brokerage Motilal Oswal also upgraded FY21/FY22E EPS by 14%/20% to reflect volume upgrade in Tractors & Autos, tighter cost control, lower depreciation, and higher other income and maintained Buy, with TP of Rs 1,040 (Mar'23 SOTP).
JM Financial Institutional Securities gave a 'Buy' rating to the stock and said, "Driven by new capital allocation policy and ongoing strength in its tractor business, we maintain BUY with a revised Mar'22 target price of Rs 950 (SOTP valuation, 14x core business). Increasing competition in the SUV segment and inability to turnaround international subs are some of the key risks to our call."
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