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."

Tractor sales expected to pick up  Analysts monitoring the 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 the consensus estimates of 5% volume growth for FY25. In the auto segment, the company is expected to get a boost in sales in the near term due to increased SUV capacity, high outstanding bookings and new launches. Mahindra & Mahindra's automotive segment contributed 54% to 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 a rise 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 in terms of 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. The stock closed at Rs 2950.85 on NSE in Friday's session.