Updated: February 8, 2021 11:18:55 am
Shares of Mahindra & Mahindra (M&M) surged 10 per cent to hit an upper circuit in the early trade on Monday on the back of its December quarter (Q3) results.
After opening at Rs 888 per share on the BSE, the scrip jumped to its 52-week high of Rs 952.15 apiece. On the National Stock Exchange (NSE), it hit Rs 952.05.
At 10:54 am, the stock was trading at Rs 926.55, up by Rs 60.95 (7.04 per cent) on the BSE, while 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 were traded so far in trade on the BSE, while over 1.37 crore shares exchanged hands on NSE.
The automaker on Friday had reported a 6 per cent decline in consolidated profit after tax from continuing and discontinued operations at Rs 159.6 crore for the third quarter ended in December.
In the third quarter the company’s domestic vehicle sales were down 7 per cent at 1,15,272 units as against 1,23,353 units in the year-ago period. However, tractor sales were up 20 per cent at 97,420 units, which is its highest ever quarterly volume, as against 81,435 units in the year-ago period, M&M said.
JM Financial Institutional Securities in its recent report on M&M has given a ‘Buy’ rating into the stock. “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 said in the report.
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