M&M Tops Tata Motors To Become Second Most Valuable Automaker

Mahindra & Mahindra Ltd. pipped Tata Motors Ltd. to become India's second-largest auto-manufacturer on the basis of its market capitalisation, as the former's share prices surged to a fresh high for the second consecutive session on Friday.

The stock rose during the session as the automaker plans to beat the industry's average revenue growth by fiscal 2027, according to an investor presentation. The company also plans to increase its earnings before interest and tax margin by 15% and achieve a return on capital employed of more than 30%, it said.

In the automobile vertical, the company plans to capitalise on its market leadership in internal combustion engines, electric vehicles, commercial vehicles, and international markets.

M&M was one of the top contributors to the Nifty 50 and Nifty Auto, which hit an all-time high on Friday. The company's market capilisation rose to Rs 3.63 lakh crore, while Tata Motors' value stood at Rs 3.62 lakh crore as of 1:40 p.m.

Shares of the company rose as much as 2.95% to a record high of Rs 2,960 apiece. They pared some gains to trade 2.31% higher at Rs 2,927.7 apiece, as of 1:42 p.m., compared to a 0.19% advance in the NSE Nifty 50.

The stock has risen 69.3% year-to-date and 112% in the last 12 months. Total traded volume so far in the day stood at 1.1 times its 30-day average. The relative strength index was at 73.2, indicating the stock was overbought.

Out of 40 analysts tracking the company, 35 maintain a 'buy' rating, four recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 8.6%.