Prior to Q3 results, Mahindra & Mahindra stock reaches 52-week high
The stocks of Indian firm Mahindra & Mahindra reached their 52-week high of Rs 992 after rising over 19% in the last 4 days since the Union Budget announcement. This rally has been credited to the sharp increase in tractor sales volume.
Mahindra & Mahindra sold nearly 35,000 units in January 2021, which was 50% higher than the sales volume in January 2020.
With an overall increase in the amount of land over which the rabi crop is planted, the tractor demand has become stronger. Another reason is that this year the water supply has been strong with very high reservoir levels which have enabled higher liquidity to the farmers.
The company reckons that the demand will remain consistently strong due to these factors.
In November, the farm had stated that it was launching a new tractor series called the ‘K2’ through its Farm Equipment Sector (FES), which will only be produced at the company’s tractor manufacturing facility at Zaheerabad in Telangana.
The company had stated, “The new K2 series is Mahindra’s most ambitious light-weight tractor program. K2 will bring incremental investments of Rs 100 crore into Mahindra’s Zaheerabad facility and double employment in the tractor plant by 2024.”
M&M share price was trading at Rs 864.60, which was up by 3.77% intraday.