M&M: Rural demand, normal monsoons and higher MSP to support volumes

Topics Mahindra & Mahindra | M&M | Lockdown

The Mahindra & Mahindra (M&M) stock rose 7 per cent on Friday, aided by its strong operational performance, market share gains, and expectations of prudent capital allocation policies. Though it was also hit by the Covid-led disruption, it was able to maintain operating profit margins of 13.6 per cent for the March quarter, and 14.2 per cent for FY20. Lower commodity costs, price hikes, and cost-cutting measures offset the pressure due to weak operating leverage. M&M highlighted that tractor and auto volumes were hit by Covid-19 and the BS-VI transition, thus impacting revenu.....

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