By CNBCTV18.com Jun 8, 2022 1:37:00 PM IST (Updated)
M&M share price: Shares of Mahindra and Mahindra (M&M) rose over one percent on Wednesday after CLSA raised its target price by over 4 percent to Rs 1,312. At 1011 IST, the stock was trading flat at Rs 1,041.45 on the BSE. The stock shed initial gains after Reserve Bank of India Governor Shaktikanta Das announced that the central bank has raised key rates by 50 bps to 4.90 percent.
Shares of Mahindra and Mahindra (M&M) rose over one percent on Wednesday after CLSA raised its target price by over 4 percent to Rs 1,312.
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However, the stock was fluctuating between losses and gains after Reserve Bank of India Governor Shaktikanta Das announced that the central bank had raised key rates by 50 bps to 4.90 percent. The monetary policy committee vote was unanimous and has decided to keep the stance withdrawal from accommodative.
At 1336 IST, the stock was up 0.2 percent at Rs 1,043.65 on the BSE.
The global brokerage firm has maintained its ‘buy’ rating on shares of the tractor maker.
CLSA has also raised its earnings estimate for M&M by 8-10 percent for the company’s standalone business over FY23/24.
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The brokerage firm is also upbeat about the auto manufacturer’s margin prospects. It believes that M&M’s margin in the SUV segment is scaling up and sees XUV700 and Thar’s margins also improving by 9-10 percent in FY24.
The global brokerage firm noted that XUV700 and Thar have strong waiting periods and backlogs.
The company reported a higher-than-expected profit and revenue in the quarter ended March. Have a look at the company's financial performance in the March quarter:
M&M's total auto sales in May came in at 53,726 units against Nomura’s estimate of 46,400 units and 45,400 units in May 2019.
Also Read | RBI MPC Meeting June 2022 LIVE
Year-to-date, the M&M stock has gained 24 percent. In the past three months, the scrip has rallied 48 percent while it has jumped 61 percent in the past three years.
First Published: Jun 8, 2022 10:37 AM IST
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