Mahindra & Mahindra Ltd. RALLY 4 PERCENT AFTER STRONG Q2

M&M Shares of Mahindra & Mahindra climbed 4 percent to Rs 3,254 on Friday, emerging as the top gainer on the Nifty 50. The rally came as brokerages maintained their positive outlook on the automaker following its strong Q2 earnings performance. Analysts highlighted robust demand for utility vehicles, upcoming product launches and capacity expansion plans as key growth drivers for the company. However, concerns over a slowdown in tractor sales remained a key area of caution. M&M shares extended their gains after surging 5.6 percent on Thursday following the announcement of its quarterly results. The stock's strong performance came despite weakness in the broader automobile sector, with the Nifty Auto index declining 0.6 percent on Friday. Despite the recent recovery, M&M shares are still down 13.8 percent so far in 2026, compared with a 5.8 percent decline in the benchmark Nifty 50. The company's market capitalisation stood at approximately Rs 4.04 lakh crore. The brokerage remained optimistic about the company's utility vehicle business, expecting new product launches and capacity expansion to drive further volume growth. Citi also pointed to an improving demand outlook for light commercial vehicles. However, the brokerage flagged concerns over the tractor segment after M&M revised its FY27 tractor industry volume growth forecast to flat, compared with its earlier estimate of 5 percent growth.