The market is showing a sideways movement due to ongoing trade negotiations with the USA and uncertainty over whether the trade deal will be officially concluded. Amid this pressure, a couple of stocks are making significant moves, with SML ISUZU rising nearly 140% in the past month—an exceptional gain from the perspective of investors and shareholders.
This stock hit a low of around ₹1,738 on June 24th, and since then, it has shown a consistent upward movement, reaching a high of ₹3,942 today. This marks a significant gain from June 24th to July 24th—an increase of over 140% in just one month.
The reason behind the rise in this stock is believed to be Mahindra & Mahindra acquiring a stake in it. The company is making strong contributions in the passenger vehicle segment as well as other types of vehicles.
This strategic investment highlights Mahindra & Mahindra’s growing competence and potential to expand its business further in the future. Following this, the stock received approval from the CCI (Competition Commission of India), after which it witnessed a magnificent upward movement.
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Mahindra & Mahindra is set to acquire a 58.96% stake in SML ISUZU at a price of ₹650 per share, valuing the deal at ₹555 crore. They have also made an open offer to other investors, allowing them to participate in this investment, which is expected to contribute efficiently to the company.
As a result of the open offer announcement, the stake is likely to increase further, which is considered one of the key reasons behind the stock’s sharp rise.
Following the acquisition announcement, Mahindra & Mahindra has consistently shown strong performance, as analysts expect significant benefits from the SML ISUZU deal. The company has a strong presence in the light commercial vehicle (LCV) and medium commercial vehicle (MCV) segments.
Additionally, around 26% of the company’s business comes from cargo vehicles, while passenger vehicles contribute approximately 67% of the revenue. Both segments are efficient and strategically important for Mahindra & Mahindra’s future business opportunities. The company generates about 94% of its revenue from vehicle sales and maintains a steady 6% contribution from spare parts sales.
SML ISUZU faces strong competition, most notably from Ashok Leyland and Atul Auto, which are prominent players in the light and medium commercial vehicle (LCV and MCV) segments. Despite this, SML ISUZU is a financially sound company with consistently rising profits year over year.
In the financial year ending March 2025, the company reported revenue of ₹2,398 crore and maintained a strong operating margin of 10%. Additionally, the company’s profit has been increasing annually, with a net profit of ₹122 crore reported in FY25.
Recently, the company also released its quarterly results, which were considered one of the best so far. It reported sales of ₹846 crore along with a strong operating profit margin of nearly 12%, which is a key highlight for the company. These results were shown in the June quarter of FY26 Q1.
The company has delivered a strong net profit performance, reporting a year-on-year growth of nearly 45%. In the June quarter, it posted a net profit of ₹67 crore, compared to ₹46 crore in the same quarter of June 2024—marking a 45% increase. On a quarter-on-quarter basis, the net profit rose by approximately 23%, which is a significant achievement.
Following this strong performance, the stock hit a 10% upper circuit, closing at around ₹3,685. Even the next day, it continued to rise by over 9%, reaching a high of approximately ₹4,053. Overall, Mahindra & Mahindra’s open offer to acquire a stake in SML ISUZU, combined with the company’s strong recent quarterly performance, reflects a promising future outlook.
Mahindra & Mahindra’s strategic focus on scaling up its presence in the light and medium commercial vehicle segments supports the forecast of continued growth. These developments are expected to take SML ISUZU to even higher levels in the near future.
