April 17: Shares of tractor maker Mahindra and Mahindra Ltd (M&M) hit new high on Tuesday as its market capitalization soar past Rs 1 trillion. With this, M&M has also climbed to 30th position in overall market cap rating.
At 10:00 AM, the market-cap of Mahindra stood at Rs 1.01 trillion. As shown by the BSE data, Mahindra gained 2.23% to hit an intraday high of Rs 819.10 a share. The shares were trading at Rs 812.85 apiece in the morning, up by 1.5% from its previous close. The Sensex index also rose to 34,309.96 points, up by 0.01%.
Along with the achievement, Mahindra also became the second most valued automaker in India after Maruti Suzuki, whose market cap stands at Rs 2.77 trillion. M&M had surpassed the market cap of Tata Motors Ltd, Eicher Motors Ltd and Bajaj Auto Ltd to climb up to the second spot.
Mahindra made a big leap in tractor sales by registering a growth of 46.23% in the market. The M&M had a sale of 28,777 tractor units in March as compared to 19,337 units during the same period last year. With a market share of around 43%, the company had sold over 3 lakh units in the domestic market in 2018, making it the best ever performance in a financial year.
Analysts are expecting a robust buying interest for M&M shares, given that tractor sales are expected to grab an upward growth in the coming months. The government’s higher spending on rural economy and infrastructure ahead of the Lok Sabha polls in 2019 will play a crucial rule in surging the tractor sales.
Additionally, IMD’s prediction of a normal monsoon for this year is also expected to boost the sales of tractors in the country. On Monday, IMD has predicted rainfall to be 97% of the 50-year average this year, with a 54% probability for normal to above normal rains.