M&M pips Tata Motors' market cap to become second most valued automaker

Mahindra & Mahindra Ltd surpassed Tata Motors Ltd in  market capitalisation on Friday, to become the second most valued automaker in the country after Maruti Suzuki India Ltd.

As per the data from BSE, M&M’s market capitalization was Rs 3.63 lakh crore on Friday evening, while Tata Motors’ market capitalisation stood at Rs 3.30 lakh crore.

M&M stock rose to around 3 percent to hit a new high of Rs 2,945 on Friday’s intraday trading. The shares closed at Rs 2,927 when the markets closed, up 2.2 percent from the previous close.

Tata Motors’ shares price remained almost flat at Rs 993.40 today. Over the last 12 months, M&M stock gained around 112 percent, outperforming the broader Nifty 50 index. Tata Motors shares have risen around 72 percent in the last one year.

Meanwhile, shares of India’s largest passenger vehicle maker Maruti Suzuki closed at Rs 12,825.60 on Friday and had a market capitalisation of Rs 4.03 lakh crore.

M&M’s shares rose on its Investor Day, when the management underscored its long-term investment, capacity expansion and product plans to strengthen its domestic market position while expanding its global footprint.

The SUV player targets a portfolio of seven electric vehicles and nine ICE vehicles by the end of this decade. The company also plans to expand its tractor business to markets in ASEAN and Western Europe.

By the end of FY2026, the automaker plans to ramp up its SUV production capacity to 864,000 units from the current 588,000 units. A large part of the capacity expansion will happen for electric vehicles.

M&M outperformed the passenger vehicle market growth for the past couple of years with its strong portfolio of SUVs. The company has projected its growth for FY25 in the mid-to-high teens, while the market is expected to grow in low-single digits.

The automaker will invest around Rs 27,000 crore in the automotive business over the next three years as it plans for new model launches and capacity expansion. It will also invest Rs 5,000 crore to strengthen its position in the domestic tractor business. ENDS

Recently, the National Stock Exchange launched a new thematic index - the Nifty EV & New Age Automotive index that tracks the performance of companies that are part of the electric vehicle ecosystem or involved in developing new-age automotive vehicles.

Currently, the index has 33 stocks. Top constituents by weightage include Bajaj Auto, Tata Motors Ltd, Maruti Suzuki India Ltd, Mahindra & Mahindra Ltd, Exide Industries Ltd, Bosch Ltd, Samvardhana Motherson International Ltd and Eicher Motors Ltd.