A Low P/B Ratio in April 2020: A Sign of the Times A High P/B Ratio in October 2019: A Different Story The lowest point of M&M's P/B ratio coincided with the onset of the COVID-19 pandemic in April 2020. The company's share price plunged 8.16% to Rs 271.50 on the Bombay Stock Exchange (BSE) following the announcement of a complete suspension of manufacturing operations across India due to rising coronavirus cases and government lockdowns. This news highlights the significant impact of the pandemic on the Indian auto industry, with M&M being no exception. In stark contrast to the April 2020 scenario, M&M's P/B ratio reached a record high in October 2019. This surge was driven by a number of factors, including strong quarterly earnings, a recovering Indian auto market, and positive government measures such as corporate tax cuts. This news article highlights the importance of considering various ...
Mahindra & Mahindra
Academic blog by: Anagha K A, Maria Sophia, Harshal Misal Dilip & Rahul Das