XUV 3XO Launch Propels Mahindra & Mahindra Stock to Record High

Mahindra & Mahindra (M&M) saw a remarkable surge in its stock price, soaring over 4 percent to hit new high of Rs 2,152 per share on April 30. This surge came after the company’s launch of its compact SUV – XUV 3XO, boasting an aggressive starting price of Rs 7.49 lakh. The move signals M&M’s entry into a fiercely competitive market, challenging established players such as Maruti Suzuki Brezza, Tata Nexon, and Hyundai Venue.

In the wake of this launch, the management articulated ambitious goals, expressing their aspiration to secure a position among the top two players in the compact SUV segment within three years. Rajesh Jejurikar, Executive Director and CEO- Auto and Farm Equipment Sector at M&M, articulated the company’s vision, stating, “We are number five in that sub-segment that is the size of 6 lakh and we hope to get number two or number one position in that.”

The XUV 3XO is set to offer consumers a choice between petrol and diesel variants, with transmission options including 6-speed manual, 6-speed automatic, and a 6-speed AMT. M&M is gearing up to kickstart both online and offline orders from May 15 onwards, with deliveries slated to commence from May 26. Notably, the production of this model will be centered at M&M’s Nashik facility, where its predecessor (previously named XUV 3OO) was manufactured. Emphasizing its commitment to innovation and safety, the compact SUV features a panoramic sunroof and level-2 Advanced Driver Assistance Systems (ADAS), encompassing advanced functionalities such as adaptive cruise control, lane keep assist, and blind spot monitoring.

The market’s response to M&M’s strategic move has been palpable, with the company’s stock rallying over 23 percent since the beginning of the year, significantly outperforming the broader market index represented by a mere 4 percent gain in the benchmark Nifty50 index.

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Looking ahead, analysts at Prabhudas Lilladher foresee a positive trajectory for M&M’s financial performance in the January-March quarter. They project an 8.1 percent year-on-year growth in revenue to reach Rs 24,390 crore, buoyed by a robust 13.8 percent volume growth in the automotive division. However, the outlook for the company’s bottom line is somewhat tempered, with an estimated 4.3 percent year-on-year decline in profit-after-tax (PAT) to Rs 1,032 crore in Q4 FY24.

Mahindra & Mahindra’s foray into the compact SUV segment with the launch of XUV 3XO underscores its strategic intent to carve out a significant market share in a highly competitive landscape. The company’s ambitious goals coupled with its focus on innovation and consumer-centric offerings position it for continued growth and relevance in the dynamic automotive market.

At 10:49 AM, Mahindra & Mahindra stock price was trading at Rs 2,142.25, up Rs 80.20 or 3.89 percent.

Source: moneycontrol

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