Shares of Mahindra & Mahindra (M&M) surged 10 per cent to hit an higher circuit within the early commerce on Monday on the again of its December quarter (Q3) outcomes.
After opening at Rs 888 per share on the BSE, the scrip jumped to its 52-week excessive of Rs 952.15 apiece. On the National Stock Exchange (NSE), it hit Rs 952.05.
At 10:54 am, the inventory was buying and selling at Rs 926.55, up by Rs 60.95 (7.04 per cent) on the BSE, whereas on NSE, it was at Rs 926.75, up by Rs 61.25 (7.08 per cent).
Around 9.38 lakh shares of M&M had been traded up to now in commerce on the BSE, whereas over 1.37 crore shares exchanged arms on NSE.
The automaker on Friday had reported a 6 per cent decline in consolidated revenue after tax from persevering with and discontinued operations at Rs 159.6 crore for the third quarter resulted in December.
In the third quarter the corporate’s home automobile gross sales had been down 7 per cent at 1,15,272 models as in opposition to 1,23,353 models within the year-ago interval. However, tractor gross sales had been up 20 per cent at 97,420 models, which is its highest ever quarterly quantity, as in opposition to 81,435 models within the year-ago interval, M&M mentioned.
JM Financial Institutional Securities in its current report on M&M has given a ‘Buy’ score into the inventory. “Driven by new capital allocation policy and ongoing strength in its tractor business, we maintain BUY with a revised Mar’22 target price of Rs 950 (SOTP valuation, 14x core business). Increasing competition in the SUV segment and inability to turnaround international subs are some of the key risks to our call,” the brokerage mentioned within the report.
