Shares of Mahindra & Mahindra (M&M) jumped 2.84% to hit intra-day high of Rs 3070 on NSE on Wednesday, November 27, following the company’s unveiling of two new electric vehicle (EV) models as part of its growing EV portfolio. The Mumbai-based auto giant introduced the BE 6e and XEV 9e on Tuesday, with deliveries scheduled to begin in February-March 2025.
New EV Models Unveiled
The BE 6e and XEV 9e, built from the ground up, mark M&M’s continued push into the electric vehicle segment. The entry-level variants of these SUVs are priced at Rs 18.9 lakh and Rs 21.9 lakh (ex-showroom), respectively, while pricing for higher variants will be revealed later.
Rajesh Jejurikar, Executive Director and CEO of Auto and Farm Sectors at M&M, expressed confidence in the models, stating, “We believe we have a very competitive offering that will create a category.”
The BE 6e boasts a range of 682 km, while the XEV 9e offers a range of 656 km, positioning them as strong contenders in the EV market.
Rollout Strategy and Customer Experience
M&M plans to introduce its two new EVs in a phased manner starting January 2025. The company is also prioritizing customer experience by bringing in 500 specialists from luxury and premium automotive brands to enhance pre-purchase drive experiences.
Additionally, around 400 tech experts will be assigned to ensure seamless customer service, supported by Mahindra Research Valley (MRV) in Chennai.
Investment in Electric Vehicle Business
M&M has committed over Rs 2,000 crore to its EV business, including the establishment of a state-of-the-art manufacturing line at its Chakan plant. This facility, with an installed capacity of 1.2 lakh units annually, will cater exclusively to electric vehicles.
Currently, Mahindra sells the XUV400 in the electric passenger vehicle segment, and the new launches are expected to further solidify its presence in the market.
Brokerages on Mahindra & Mahindra
Morgan Stanley on Mahindra & Mahindra
Morgan Stanley reiterated its “Overweight” rating with a price target of Rs 3,336 per share. The firm highlighted the company’s recent unveiling of the BE 6e and XEV 9e electric SUVs, noting that the models are priced in line with premium variants, making them competitive in the EV segment.
Morgan Stanley pointed out that while EV offtake has been slower than initially anticipated, the performance of these ground-up pure EV models will be a key metric to monitor going forward. Additionally, the success of the BE 6e and XEV 9e will play a significant role in helping M&M comply with the stringent CAFE 3 norms, underscoring their importance to the company’s long-term strategy.
Q2 FY25 Financial Highlights
M&M reported robust financial performance for the quarter ended September 30, 2024 (Q2 FY25). Consolidated profit after tax (PAT) grew 35% year-on-year to Rs 3,171 crore, compared to Rs 2,348 crore in the same period last year.
The company’s consolidated revenue also rose 10% to Rs 37,924 crore, up from Rs 34,436 crore in the corresponding quarter of the previous year.
Stocks Performance in Last One Year
The shares of Mahindra & Mahindra have demonstrated positive returns across various time intervals. In the last month, the stock delivered a positive return of 8.44%. Over the past six months, it exhibited strong momentum with returns of 18.30%, indicating a robust performance.
Year-to-date figures further emphasized the stock’s bullish trend, recording an impressive growth of 76.04%. Looking at the broader horizon, the shares have shown consistent strength, given returns of over 92.56% in the last year.
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(With PTI Inputs)