M&M share price jumps 5% after Q3 earnings; is the stock buy-worthy?
BSE on Thursday, February 15, a day after declaring its December quarter results. Mahindra and Mahindra share price opened at ₹1,683.10 against the previous close of ₹1,657.60 and jumped 4.7 per cent to the level of 1,734.70. Around 10:55 am, the stock traded 3.78 per cent higher at ₹1,720.30 on the BSE.
During market hours on Wednesday, Mahindra and Mahindra reported a consolidated net profit of ₹2,658.40 crore for Q3FY24 against a profit of ₹2,676.56 crore in the same quarter last year. Total income from operations, on a consolidated basis, for the quarter under review stood at ₹35,299.39 crore against ₹30,621.28 crore year-on-year (YoY). However, the company's standalone PAT (profit after tax) for the quarter under review surged almost 61 per cent YoY to ₹2,453.98 crore against ₹1,528.06 crore in Q3FY23.
Standalone revenue from operations stood at ₹25,288.51 crore for Q3FY24, up 17 per cent against ₹21,653.74 crore YoY. Standalone EBITDA jumped 10 per cent YoY to ₹3,590 crore. The stock ended 0.71 per cent higher on Wednesday.
Most brokerage firms retained their positive views on the stock after the company's December quarter scorecard. Kotak Institutional Equities retained its 'add' call on the stock with a target price of ₹1,800 as it said M&M standalone EBITDA was in line with its estimates as better-than-expected ASPs (average selling prices) were offset by weaker gross margins. "Automotive division demand trends remain healthy, while we expect the tractor volumes demand to recover post Q1FY25E.
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