Shares of Mahindra & Mahindra snapped a three-day losing streak and rose as much as 3.9 percent on Monday after CLSA maintained a 'buy' rating and maintained an optimistic outlook for the company.

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The stock of M&M was trading 2.6 percent up at Rs 1,283.7 on BSE at the time of writing.

CLSA maintained 'buy' on the shares of the auto major with a target price of Rs 1,567. The brokerage house remained optimistic about the company for a strong festive season demand for the special utility vehicle and tractor segments.

Further, the brokerage house believes that the full impact of the strong festival demand will start reflecting in the company's operating margins from the October-December quarter. The brokerage house says that the company will be increasing channel inventory in the tractor segment.

The automotive company had also announced, through an exchange filing, the partial divestment of the stake held by the company's wholly-owned subsidiary Mahindra Holdings Ltd in Mahindra Susten Private Ltd. Mahindra Susten is a wholly owned subsidiary of Mahindra Holdings.

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First Published:Sept 19, 2022 3:03 PM IST