Rural recovery powering growth for Mahindra's tractor, UV business

The stock of Mahindra & Mahindra (M&M) has gained nearly 10 per cent over the last three weeks and in the process touched its all-time high on expectations of strong volume growth given its rural-heavy portfolio. Almost 56 per cent of the company's standalone revenues and 72 per cent of its profit comes from the rural markets. The company, which has gained market share in tractors, is expected to benefit from the upcoming launches in the utility vehicle (UV) space as well as electric vehicle initiatives.Tractors growing rapidlyThe biggest trigger for the company will come from its tractor portfolio, which saw a 32 per cent year-on-year increase in volumes in November on the back of a healthy monsoon, robust kharif output and increased minimum support prices for crops. The company, which has increased its tractor market share from 41 per cent in FY16 to 46 per cent currently with gains across key states, is expected to benefit from rising rural incomes, push to direct benefit ..

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