Mahindra Group shares rose more than 5% on Friday, taking the group's market capitalisation to Rs 6 lakh crore. The automobile giant contributes 60% to the group's valuation. Earlier, the group had achieved the milestone in July this year but lost nearly 8% of its value in the following week.

The company's management expects an increase in demand during the festive season. Speaking to CNBC-TV18, Mahindra & Mahindra's Automotive Division Head Vijay Nakra said that the atmosphere is encouraging and the festive season will be good for us. Nakra said, "We are seeing a return in demand and the pipeline is strong for some products."

Expectations of a rise in tractor sales  Analysts monitoring this sector also reiterated a similar opinion. According to them, there has been a sharp increase in inquiries for tractors in recent times and they expect the sector to perform better than consensus estimates of 5% volume growth for FY25.

In the auto segment, the company is expected to boost sales in the near term due to increased SUV capacity, high pending bookings and new launches. Mahindra & Mahindra's automotive segment contributed 54% of total revenue in FY24, while nearly a quarter of the revenue came from the firm's equipment business.

M&M shares rise up to 71%

Among the group companies, Mahindra & Mahindra shares have risen up to 71% so far this year. It was followed by Tech Mahindra, Mahindra Logistics and Swaraj Engines, which saw gains of 27% to 36%. The combined valuation of the group has increased by 47% during the same period. Tech Mahindra Group's second-largest company by market cap, which contributes 26% to the group's valuation.

With a gain of 5.5%, Mahindra & Mahindra topped the Nifty 50 gainers list on Friday. This stock, which has given positive returns every year since 2020, has managed to give an average return of 42% in the last five years. Out of 41 analysts tracking this stock on Bloomberg, 85% have recommended it as “Buy”, with Nuvama having the highest target price of Rs 3800. In Friday's session, the stock closed at Rs 2950.85 on NSE.