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Mahindra & Mahindra share rises 3% after CLSA retains buy call

M&M) share touched an intraday high of Rs 860.4, rising 2.83% against previous close of Rs 836.75 on BSE

twitter-logoBusinessToday.In | March 18, 2021 | Updated 14:58 IST
Mahindra & Mahindra share rises 3% after CLSA retains buy call
The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

Mahindra & Mahindra (M&M) share rose nearly 3% today after brokerage CLSA assigned a buy call with target price of  Rs 1,150. M&M stock has gained after 4 days of consecutive fall. The large-cap stock touched an intraday high of Rs 860.4, rising 2.83% against previous close of Rs 836.75 on BSE.

The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. The large cap stock has gained 141.71% in one year and risen 16.36% since the beginning of this year.

Market cap of the firm rose to Rs 1.04 lakh crore on BSE. Later, the stock was trading flat at Rs 839.20, up 0.29%. However, CLSA pared FY21-23 core earnings per share by 3-7 percent to account for volume losses due to chip shortages.

The brokerage has projected FY22/23 tractor industry growth of 8 percent/2 percent on an FY21 base of 25 percent.  SUV launches and a cyclical recovery in light commercial vehicles (LCV) should drive auto segment margin, it said.

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In February, total tractor sales (domestic and exports) of the company stood at 28,146 units, up 25% from 22,561 units in the same period last year.

However, the firm reported a 11.38 per cent decline in total sales at 28,777 units in February against 32,476 units in February 2020. Passenger vehicles sales rose 41 per cent to 15,391 units last month, as compared with 10,938 units in the year-ago period. In the commercial vehicles segment, the company sold 11,559 vehicles in the domestic market last month, as against 19,699 units in February 2020, a drop of 70.42 per cent.

Exports declined by 1 per cent to 1,827 units last month, as against 1,839 units in the year-ago month.

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