MM share price jumps nearly 3% ahead of September quarter earnings

Stocks

The share touched a 52-week high of Rs 970.95 on October 13, 2021 and a 52-week low of Rs 610.20 on November 9, 2020

Source: Reuters

Source: Reuters

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Mahindra and Mahindra (M&M) share price jumped nearly 3 percent to an intraday high of Rs 884.50 on November 9 ahead of the vehicle-maker’s September quarter earnings to be announced later in the day.

Mahindra & Mahindra may report a 12 percent drop in profit as the sector endures challenges such as a worldwide shortage of semiconductors and a steep rise in commodity prices, analysts said.

Margins are expected to be hit by raw material headwinds, which would result in profit after tax declining by 11-12 percent from a year earlier.

Revenue is expected to increase by 7-8 percent year-on-year, aided by an about 3 percent increase in both volumes and realisations.

Also Read: Mahindra & Mahindra: Q2FY22 Results Preview – Revenues to increase 7-8% and PAT to decline 11-12%

Emkay Research expects revenue to grow 7.5 percent annually to Rs 12,464 crore.

“Revenues should grow on higher volumes (3 percent y-o-y) and realisation (5 percent y-o-y),” the brokerage said. “Adverse mix (lower share of tractors) and delays in the pass-through of commodity inflation to result in contraction of EBITDA margins.”

At 9.48 am, Mahindra and Mahindra was quoting at Rs 879.25, up Rs 20, or 2.33 percent, on the BSE.

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The share touched a 52-week high of Rs 970.95 on October 13, 2021 and a 52-week low of Rs 610.20 on November 9, 2020.

It is trading 9.44 percent below its 52-week high and 44.09 percent above its 52-week low.