Shares of Mahindra & Mahindra Ltd rose 3 percent on Wednesday after the automaker reported stronger-than-expected June sales across its automotive and tractor businesses, with both segments comfortably beating market estimates.
At 10:01 am, M&M shares were trading at Rs 3,161, up 3 percent, making the stock the top gainer on the Nifty 50. The gains also helped lift the Nifty Auto index, which was up 1.61 percent, making it among the best-performing sectoral indices. The broader market was also positive, with the Sensex rising 379 points, or 0.5 percent, to 76,858, while the Nifty 50 gained 121 points to 23,987.
The company reported total auto sales of 1.06 lakh units in June, comfortably ahead of the CNBC-TV18 poll estimate of 96,400 units. Total tractor sales came in at 58,177 units, also significantly higher than the estimated 43,400 units.
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Passenger vehicle sales rose 28 percent year-on-year to 60,393 units from 47,306 units a year earlier, while three-wheeler sales surged 63 percent to 13,820 units from 8,454 units. Exports more than doubled, rising 125 percent year-on-year to 5,918 units from 2,634 units.
Meanwhile, total tractor sales increased 12 percent year-on-year to 58,177 units, while overall auto sales climbed 37 percent from the year-ago period, reflecting broad-based strength across the company's key business segments.
The better-than-expected monthly sales figures reinforced investor confidence in M&M's growth momentum, with robust demand across passenger vehicles, tractors and exports driving the stock higher in early trade.
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