M&M Share Price Today: Shares of M&M hit a fresh 52-week high of Rs 1,244.95 per share as they soared 6.8 per cent on the BSE on Monday, surpassing their previous high of Rs 1,192.55, hit on July 20, 2022. This was the fifth consecutive session when the stock traded higher. It has advanced over 45 percent year-to-date. This comes after it recorded 1,00,000 bookings for the all-new Scorpio-N within 30 minutes of booking commencement on Saturday.
The rush has translated into a book value of Rs 18,000 crore on an ex-showroom price basis. The firm said the enthusiasm for the SUV was so high that it recorded 25,000 bookings within the first one minute.
The website too suffered a glitch and many interested buyers failed to book their Scorpio-N. Anand Mahindra admitted to the snag with the payment gateway provider and tweeted: “From our press release. And I add my reassurance: There was a brief glitch with the payment gateway provider. We assure all customers that their time stamp prior to payment is duly recorded, so each customer will have their rightful place in the order sequence.”
What Should Investors Do?
While analysts at Axis Capital opine that there could be some duplication of bookings, and some cannibalization with XUV7oo, they are “positively surprised by strong customer response for Scorpio-N”.
“We are a bit cautious and build in 60,000/ 72,000 units for both Scorpio models combined for FY23E/24E considering some cannibalization with XUV7oo. Overall, we are conservatively building in SUV volumes of 326,000/366,000 units for M&M in FY23/24E, resulting in 45 per cent/12 per cent year-on-year growth,” it said.
In the last two years, this is the third consecutive successful SUV model launch by M&M after Thar and XUV7oo. M&M will continue to offer the existing model Scorpio Classic (3,000-4,000 monthly run-rate currently) as well and targets 8,000-10,000 volumes per month for both models combined.
“Back-to-back successful SUV launches in highly competitive segments should allay investor concerns on the sustainability of company’s SUV franchise. M&M continues to undergo significant makeover as witnessed from its sharper focus on large SUVs, efforts to scale up presence in electric vehicles (EVs) and larger ambitions in agri implements. Its capital allocation policy has come a long way from investing in unrelated segments and loss-making overseas auto businesses to monetization and exit from non-core businesses and getting external funding for EVs,” Axis Capital said. The brokerage reiterates ‘BUY’ with a target of Rs 1,450.
“We note that M&M is a leader in EV 3Ws (ex e-rick), with a 38 percent share in the first quarter of FY23 (per Vahan). We believe electrification in last-mile mobility (3Ws, LCVs) could drive additional value creation for M&M in the future,” JP Morgan said in a note.
“M&M currently has 143K+ open bookings (as of July 1 as against 170K+ as of end-May), and we expect this number to remain high, as Scorpio-N bookings start 30 July. The XUV700 currently has 80K open bookings, followed by the Thar, at 26K,” the report added.
Mahindra & Mahindra’s overall auto sales for the month of July 2022 stood at 56,148 vehicles. In the Utility Vehicles segment, Mahindra sold 27,854 vehicles in July 2022. The Passenger Vehicles segment (which includes UVs, Cars and Vans) sold 28,053 vehicles in July 2022. Exports for the month were at 2,798 vehicles. In the Commercial Vehicles segment, Mahindra sold 20,946 vehicles in July 2022.
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