Pair Trading Opportunities in Auto Sector: Here's Our Playbook On Maruti And Mahindra & Mahindra

Trading Auto Stocks Allows for Capitalizing on Both Growth and Decline.

Tue Mar 4, 2025

Maruti Suzuki Ltd.

Maruti Suzuki had a strong 2024-2025 fiscal year, marked by:

  • Increased Sales: Total sales surpassed 2 million units.
  • Strong Financials: Revenue from Operations: Increased by 15.7%, Net Profit After Tax (PAT): Increased by 16.2%.
  • UV Segment Growth: Utility vehicles saw significant sales increases.
  • Increased OEM Sales: Sales to other manufacturers rose.
  • Record Exports: Q3 export numbers were exceptionally high.

The price action on Maruti Suzuki ltd. suggests the stock is currently consolidating within an accumulation zone. It indicates a potential price reversal, presenting a favorable entry point for investors targeting a price objective of ₹12,366.

Mahindra & Mahindra (M&M)

Although Mahindra & Mahindra (M&M) has also shown a strong performance in Q3 results of 2024-2025 fiscal year where:

  • Consolidated net profit increased by approximately 20% to ₹3,181 crore. 
  • Consolidated revenue from operations rose by approximately 17% to ₹41,470 crore.

 Whereas, Our analysis confirms a breakdown below the stock's consolidation range, as illustrated in the chart. Price action confirms a liquidity hunt and a strong bearish close, indicating downward momentum will continue. Projected price targets for the next month are ₹2,331 and ₹1,795.


Sudhanshu,

A Bhilai-based Finance professional who likes intellectual conversations and spending time in nature.