Market Movers: M&M’s stellar growth promises and Zomato back on investor radar

One year on, Mahindra & Mahindra seems to have left its capital allocation troubles behind and is focused on producing growth for its shareholders. The company reported strong September quarter earnings today but what impressed investors the most is the management’s ambitions.

The automaker said that it expects to report 15-20 per cent annualised growth in sales over the next three years driven by its tractor and automotive business. Further, it expects the tractor business to grow 10 times over the next five years.

No wonder the company’s stock was soaring as it closed 5.2 per cent higher.


is back in favour

Having gone off the boil over the past few weeks, shares of Zomato appear to be back on the radar of investors.

Shares of the online food aggregator have risen nearly 10 per cent in the past few trading sessions likely driven by interest from retail investors. The stock seems to be riding the wave of optimism for QSR and consumer-facing companies in the market as investors count on economic demand to return meaningfully in the coming months.

With the blockbuster festive period, signs are that Indian consumers are loosening the grip on their wallets, which is good news for a company like Zomato.


Midcaps back on top?

Over the past week, midcaps have started to continuously outperform their largecap peers. Today, the Nifty Midcap index rose over 1 per cent as it outperformed both the Nifty50 and Nifty Smallcap 100.

Analysts suggested that retail investors are buying the dip in the segment after it was largely underperforming largecap stocks over the past two months.

That said, Axis Securities believes that the 15 per cent premium enjoyed by midcap stocks over largecap stocks has still some room to expand. In the 2017 bull market, that premium was close to 45 per cent.