- 26 May 2023
- ICICI Securities
Mahindra & Mahindra Q4 Results 2023: Steady performance
Bharat Dynamics Ltd | CMP: 1596 | Market Cap: 29,257.15
Mahindra & Mahindra (M&M) posted a steady performance in Q4FY23 and was largely in line with our estimates.
Q4FY23 Earnings Summary
View: M&M is India’s largest tractor manufacturer (~41.2% market share) & prominent player in the CV and PV domain domestically with market share at 25.8% & 9.2% respectively as of FY23. The company is witnessing robust response & healthy demand traction across its newly launched product portfolio in the SUV space & is all set to embrace upcoming EV trend through its BEV product portfolio based on INGLOW platform. Further with intent towards reducing pending orderbook of ~2.9 lakh units as of 1st May 2023 & building up for future growth the company is undertaking thoughtful capacity expansion to 39k monthly run rate by end of FY23 and 49k monthly run rate by end of FY24 amidst ambitious target to sell 20-30% of its SUV portfolio as electric vehicles (EVs) by 2027. Key monitorable going forward would be management commentary on ramping up EV sales, its first BEV launch & margin trajectory going forward.
Impact: Neutral