M&M Share Price Jump 34% from April Low; Strong Sales and Aerospace Deal Fuel Rally

Mahindra & Mahindra (M&M) share price rose for the third day in a row, gaining 2% to ₹3,160 in Friday's intra-day trading. Over the past 3 sessions, the stock has gained 5%.

M&M has surged 34% from its 52-week low of ₹2,360.45 hit on April 7, 2025, and is now nearing its all-time high of ₹3,276.30 reached on February 10, 2025.

So far in June 2025, M&M has gained 6%, significantly outperforming the BSE Sensex (0.27%) and the BSE Auto index (0.58%).

Strong Automotive and Tractor Sales

M&M’s strong performance is supported by solid growth in its vehicle segments:

• Automotive sales rose ~17.3% YoY to 84,110 units
• SUV sales increased 21.3% YoY to 52,431 units
• Tractor sales grew 9.5% YoY to 40,643 units, with domestic sales up 10.4%

The company expects better tractor demand going forward due to an early monsoon, higher MSP for crops, and good reservoir levels. These factors will benefit farming activities and support rural demand.

$300 Million Aerospace Deal Boosts Outlook

M&M’s aerospace arm, Mahindra Aerostructures, signed a multi-year contract worth ~$300 million with Spain-based Aernnova Aerospace. This will involve manufacturing metal components for Airbus and Embraer aircraft.

Under the deal, Mahindra will supply parts to Aernnova’s facilities across Spain, the UK, Portugal, and Brazil. The partnership enhances Mahindra’s position in the global aerospace supply chain.

Read More:Adani Power Shares in Focus as NCLT Approves ₹4,000 Crore Acquisition of Vidarbha Industries Power.

Focus on Utility Vehicles and BEVs

M&M aims to have 20–25% of its portfolio in BEVs to meet fuel efficiency norms (CAFÉ targets). This will be key to sustaining its strong valuation.

Conclusion

M&M's recent stock rally is driven by robust sales, a positive rural outlook, and a major aerospace contract. The company’s performance in June has stood out in a mostly subdued market. With a strong position in the UV segment and a focus on electric vehicles, M&M is well-placed for long-term growth.

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