Analysts Flag One Risk As New Launches Drive Growth

Mahindra & Mahindra Ltd.’s growth will be led by the automotive segment with the success of recent launches and strong demand, but an increasing risk of slowdown in tractors may prove to be a drag, analysts said.

The strong response to the company’s recently launched SUVs will ensure volume growth in the coming years, but an upcycle in trucks over the last four to five years may give way to muted growth in the coming financial year, they said.

The company had over 2.66 lakh open bookings for SUVs as of Feb. 1, reflecting robust demand, M&M had said after the third-quarter earnings announcement. In the quarter ended December, the company’s consolidated net profit jumped 25% aided by higher sales in the automotive business and low-base of last year due to limited production of cars amid chip shortage.