This Stock Surged Over 60% In March: What’s Driving the Rally?

SML Isuzu, a leading commercial vehicle manufacturer, saw its share price soar over 60% in March 2025. This surge is driven by strong financial performance and reports of a potential stake sale to Mahindra & Mahindra.

Reason For Stock Surge

One of the key reasons behind the stock rally is the news that Mahindra & Mahindra is in discussions to buy Sumitomo Corporation’s 44% stake in SML Isuzu. Reports suggest that Mahindra is considering an offer of Rs 1,400–Rs 1,500 per share, valuing SML Isuzu at approximately Rs 2,026 crore ($236 million).

Following this report, SML Isuzu’s stock climbed 5.4% to Rs 1,741.20 on the Mumbai stock exchange. Mahindra’s board is expected to review the deal soon. 

SML Isuzu: Financial Growth 

Apart from takeover speculations, SML Isuzu’s solid financial results have also attracted investors. The company posted record-breaking net profits for the second consecutive quarter in FY 2024-25.

For the first half of FY25, the company reported a turnover of Rs 1,295.81 crore, reflecting strong year-on-year growth. Notably, export revenue jumped by 168% in Q2 FY25, showcasing the company’s expanding global market.

SML Isuzu: Sales Performance

SML Isuzu sold 626 units in December 2024, up 16.14% from the previous month. However, year-on-year sales were down 33.8% compared to December 2023.
Cargo vehicle sales declined by 38.4%. Passenger vehicle sales fell by 30.1% and total sales from April to December 2024 stood at 9,593 units, slightly lower than 9,599 units in the same period last year.

Way Ahead:

Market experts believe the potential Mahindra acquisition could strengthen SML Isuzu’s market presence and operational efficiency. Coupled with strong financials, the company remains an attractive investment.

SML Isuzu’s stock surge in March 2025 is fueled by takeover talks and strong business performance. Investors are closely watching how the Mahindra deal unfolds and whether the company can sustain its growth momentum.