InvestorQ : Is it true that M&M has gone past Tata Motors in the market capitalization race?
manisha Kolvenkar made post

Is it true that M&M has gone past Tata Motors in the market capitalization race?

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Crowny Pinto answered.
4 weeks ago
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Maruti Suzuki may be the most valuable auto stock in India at Rs2.67 trillion market cap, but the big story this week was M&M at Rs1.62 trillion over taking Tata Motors at Rs1.47 trillion market cap. As on 09th September, M&M had a market cap of Rs1.62 trillion and a free float market cap of Rs1.25 trillion. The stock is available at a rolling P/E ratio of 29.8 times earnings, so projected P/E should be much better. In last 3 months, M&M price appreciated 27% against Tata Motors appreciating by just 2% and the Sensex gaining 8% in the period.

How did this come about? M&M is predominantly an India centric auto business while the auto business of Tata Motors is facing pressure from its biggest business contributor, the Jaguar Land Rover (JLR) division. M&M got a leg up from festive sales. Some of the recent SUV launches of M&M have been received very enthusiastically by the Indian markets and that has helped. Most brokerages are very positive on M&M numbers in FY23. Global portfolio investors are preferring India centric stories and M&M is gaining from it.

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