Mahindra and Mahindra (M&M) shares were in focus on Friday after the company, including its manufacturing arm Mahindra Vehicle Manufacturing, posted a net profit of Rs 2,484.24 crore after exceptional items.

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This was a sharp 57 percent surge from Rs 1,268 crore reported a year ago, the company said on February 10.

The stock that opened in the green in a market going deep into the red over global macro concerns, fell 1.56 percent, or 13.35 points, at Rs 839.70 intraday on the BSE. It touched an intraday high of Rs 861.90 and an intraday low of Rs 839.25.

Revenue for the quarter rose 9 percent from a year ago to Rs 2,3594 crore. Tractor sales in the domestic market fell 9 percent on-year to 91,769 units. Sales in the auto segment, including commercial and passenger vehicles, dropped 2 per cent to 11,8174 units during the period.

The company said its margin stood at 11.9 percent which was impacted due to commodity inflation and shortage of semiconductors. The company said that during the quarter it saw continued growth in exports both for the auto and farm segment at 58.3 percent year-on-year.

Morgan Stanley has an 'overweight' call on the stock with a target at Rs 1,117 per share, an upside of 30 percent from current market price.

The brokerage is of the view that Q3 performance was in-line with estimates adding that slowdown in tractor volumes is likely priced in. "Auto business looks set for a sharp rebound in FY23. Valuations are attractive at current levels," it said.

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