Mahindra & Mahindra (M&M) share price rallied over 5% to hit a fresh record high on Tuesday after the company launched compact SUV XUV 3XO. M&M shares jumped as much as 5.15% to a new high of ₹2,169.25 a piece on the BSE.
The auto major launched the XUV 3XO with prices starting from ₹7.49 lakh for the base MX1 variant. The new compact SUV is likely to compete with the likes of Tata Nexon, Hyundai Venue and Maruti Suzuki Brezza in a highly contested market segment.
The XUV 3XO’s bookings will open online and simultaneously at Mahindra dealerships from May 15 and deliveries will begin starting from May 26, M&M said in a release.
Also Read: Mahindra XUV 3XO launched in India, starting at ₹7.49 lakhs: Details on design, interior, features and more
M&M’s latest compact SUV will be built in its Nashik facility. It will be available in petrol and diesel options. The XUV 3XO is equipped with 6-speed AISIN 3rd Gen Automatic Transmission. Each engine is available with a 6-speed manual gearbox and an added option of 6-speed AISIN automatic transmission for the petrol engines and 6-Speed AutoSHIFT+ for the diesel variants.
“From those upgrading from a hatchback to their first SUV to luxury seekers looking for high-end features at a competitive price, the XUV 3XO offers a unique blend of innovation, safety, comfort, and performance,” said Veejay Nakra, President – Automotive Division, Mahindra & Mahindra.
M&M share price has risen over 25% in 2024 so far, while the stock is up more than 76% in the past one year.
M&M auto sales in the month of April are estimated to decline 3% to 60,400 units from 62,294 units in the same month last year, dragged by weak exports, according to brokerage firm Anand Rathi.
Also Read: Nifty Auto soars 75% in FY24; what lies ahead for the sector? Here’s what experts predict
For the fourth quarter of FY24, M&M is expected to report revenue growth of 7.7% year-on-year (YoY( to ₹24,349 crore led by 18% YoY increase in the automotive segment’s revenues partly offset by a 20% decline in the Farm Equipment Segment (FES) revenues owing to ~20% YoY volume de-growth, according to Nuvama Institutional Equities.
M&M’s net profit in Q4FY24 is estimated to fall 7.6% to ₹1,942.7 crore from ₹2,103.2 crore, YoY.
Auto EBIT margin is expected to rise to 8.5% from 8.3% QoQ, led by favorable mix and lower marketing spends (one-offs last Qtr.). FES’ EBIT margin is estimated to decline 50 bps QoQ to 15% largely due to negative operating leverage, Nuvama said.
At 1:50 pm, M&M shares were trading 4.79% higher at ₹2,161.65 a piece on the BSE.
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