Mahindra and Mahindra Ltd (M&M) has got more than something going for itself in this current pandemic crisis. Analysts feel its tractors segment has robust demand prospects driven by better outlook from the rural market.
Unsurprisingly, the shares have been relentless, flirting with its 52-week highs on the NSE.On Friday, after the company warned about supply chain constraints in meeting the emerging demand, the stock lost just a mere 1.5%.As per the management, even as it ramped-up tractors manufacturing plant utilization levels to 90%, it was unable to fully meet the demand last quarter.
Consequently inventories have fallen to unusually low levels. “By the end of Q1, stock level is much lower. That is one of the reasons we are not getting.