Share Market Live

NSE

Shares of Mahindra & Mahindra Ltd (M&M) rose more than one percent on Wednesday after the Receiver of SsangYong Motor Company informed about the sale of SsangYong Motor (Shanghai) Company.

The company has received an intimation based on its enquiry from the Receiver of SsangYong Motor Company, a subsidiary of M&M about the sale of SsangYong Motor (Shanghai) Company, a wholly-owned subsidiary of SsangYong Motor (Shanghai) Company and a subsidiary of the company, M&M said in an exchange filing.

With this, SsangYong Motor (Shanghai) Company has ceased to be a subsidiary of SsangYong Motor Company and consequently, that of M&M.

Consideration for such sale is around Rs 19 Lakh and the buyer, Hongchun Li, is a Chinese National and a former Employee of SsangYong Motor (Shanghai) Company.

Also Read |

RBI may need to hike rates by 25 bps as India no exception to global inflation: Arvind Sanger

At 9:56 am, shares of the automaker were trading 1.3 percent higher at Rs 871.75 on BSE. M&M shares are trading higher than 5, 20, 50, 100 and 200-day moving averages.

Besides, the company reported its commercial vehicle sales figures for March which also aided gains in the stock today.

For the reporting month, commercial vehicle sales came in at 23,218 units as compared to a year ago's 16,943 units. Sales stood at 19,837 units against 17,116 units in last year's corresponding month. Exports for March 2022 were at 2,007 units in comparison to March 2021's 1,733 units.

In March, M&M saw a 45 percent rise on a month-on-month (MoM) basis in tractor sales.

Hemant Sikka, President-Farm Equipment Sector, M&M told CNBC-TV18 that March shaped out well for the entire auto industry. Going ahead, he expects the whole tractor industry to do very well. He believes that the agricultural season will be very good, and he is already seeing a lot of buoyancy in the market.

Recently, BofA Securities hiked its target price on the automaker's stock to Rs 1,050 from Rs 910.

According to the foreign brokerage firm, M&M has a strong case for the valuations to narrow versus the peers and believes that multiple levers can drive earnings and valuation uptick over 12-18 months.

Catch up on all LIVE stock market updates here.

First Published:Apr 13, 2022 10:37 AM IST