M&M Becomes India’s Second Largest Automaker, Surpassing Tata Motors

Mumbai: Mahindra & Mahindra (M&M) has overtaken Tata Motors to become India’s second-largest automaker by market capitalisation. Today, M&M’s market value hit ₹3,63,980.89 crore, placing it just behind Maruti Suzuki, which remains the top automaker with a market cap of ₹4,03,240.17 crore, as per BSE data.

M&M’s Stock Reaches New High

M&M’s shares surged by 3% to a fresh 52-week high, marking a second day of consecutive gains on Friday, June 14. The stock ended the day as the biggest gainer on the Sensex. M&M, the world’s largest tractor manufacturer based on FY24 volumes, aims to expand further both in India and internationally, according to their latest investor day presentation.

Why is M&M’s Stock Rising?

The recent boost in M&M’s stock is due to the company’s ambitious growth plans. M&M plans to outperform the industry’s average revenue growth by fiscal 2027, targeting a 15% increase in earnings before interest and tax (EBIT) margins and aiming for a return on capital employed (RoCE) of over 30%.

During their investor presentation, M&M revealed plans for a total capital expenditure of ₹27,000 crore from FY25 to FY27.

Focus on the Automobile Sector

M&M is set to leverage its leadership in internal combustion engines, electric vehicles (EVs), commercial vehicles, and international markets. By 2030, M&M plans to introduce six new SUVs, along with 23 new vehicle launches, including seven all-new EVs.

Key Points of M&M’s Growth Strategy

• Market Capitalisation: ₹3,63,980.89 crore, second only to Maruti Suzuki.
• Stock Performance: Reached 52-week high; major Sensex gainer.
• Expansion Plans: Significant investments and vehicle launches planned by 2030.
• Revenue Growth Targets: Aiming for revenue growth beyond industry average by FY27.
• Capital Expenditure: Planned capex of ₹27,000 crore from FY25 to FY27.
• New Vehicles: 23 launches by 2030, including seven EVs.