Mahindra & Mahindra (M&M) shares are in the spotlight following a positive report from CLSA on robust retail growth in the auto sector during the recent festive season. This surge was primarily driven by inventory corrections and strong demand, with dealers expressing optimism for double-digit growth in two-wheelers (2Ws) and mid-single-digit growth in passenger vehicles (PVs) for FY25.
According to CLSA, the second half of October saw a notable boost in retail sales for both 2Ws and PVs. Inventory levels have now normalized, and discount levels have remained steady since September 2024. Looking ahead, the upcoming marriage season in November and December is expected to sustain retail demand in these segments, further supporting growth.
CLSA has identified Mahindra & Mahindra (M&M) and Maruti Suzuki as its top picks in the auto sector, based on the positive market outlook. The brokerage anticipates that discount levels will continue to hold steady through October and November, adding stability to the sales momentum.
As of 11:54 a.m., M&M shares were trading 0.54% higher at ₹2,915 on the NSE, reflecting investor confidence in the company’s growth prospects amid the favorable retail trends in the auto sector.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
