Anand Mahindra gains Rs 15,44,40,864 in a single day from this stock with PE below industry average!

Anand Mahindra has garnered a staggering Rs 15,44,40,864 in just a single trading session.

Thursday witnessed a captivating session in the realm of trade, with Indian benchmark indices surging ahead and the Nifty soaring past the significant threshold of 21,910. Notably, Nifty Auto emerged as one of the frontrunners in the sectoral performance, catapulting over 1 per cent, propelled by the robust performance of automotive heavyweight Mahindra & Mahindra Ltd.

Mahindra & Mahindra (M&M) experienced a meteoric rise of 6.5 per cent, reaching Rs 1,765.05, marking a remarkable ascent to a fresh 52-week high during Thursday's trading session. The automaker reported a staggering 60.6 per cent year-on-year surge in net profit, amounting to Rs 2,454 crore, accompanied by a commendable 16 per cent increase in revenue, which stood at Rs 25,642.4 crore for the three months ending December, as per an exchange filing on Wednesday.

In the realm of SUVs, M&M firmly secures its position at the summit with a commanding revenue market share of 21 per cent. Moreover, the company dominates the light commercial vehicles segment, accounting for 49.5 per cent of all sales in the country. With a commanding 41.8 per cent share in the tractor segment, M&M solidifies its position as the market leader in farm equipment. Furthermore, the company boasts a staggering 54 per cent market share in electric three-wheelers, witnessing a remarkable year-on-year volume surge of 54 per cent.

M&M's outlook remains optimistic, with projections indicating a 3-4 per cent growth for passenger vehicles (PVs) and a robust 10-12 per cent growth for utility vehicles (UVs) in FY25 as per SIAM. Expectations are set for M&M's SUV portfolio to witness growth in the mid-to-high teens during FY25. However, in the tractor segment, M&M anticipates a 10 per cent year-on-year decline in 4QFY24 and a 5 per cent dip for FY24 overall. Despite this, prospects for FY25 appear promising, buoyed by expectations of another normal monsoon in CY24.

In a notable development, Anand Gopal Mahindra holds an impressive 14,30,008 shares of the company. With the stock price skyrocketing to a 52-week high, experiencing an upward surge of Rs 108 per share, Anand Mahindra has garnered a staggering Rs 15,44,40,864 in just a single trading session.

The stock has reached a milestone market capitalization of Rs 2,19,489 crore, trading at a price-to-earnings (PE) ratio of 19.7x, which notably stands lower than the industry average PE of 36.8x, further underscoring its strong performance and potential for growth.

Disclaimer: The article is for informational purposes only and not investment advice.