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M&M slips after plans of no production days at some plants on need basis

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Capital Market
Last Updated : Dec 10 2016 | 12:01 AM IST

Mahindra & Mahindra dropped 0.94% to Rs 1,195.35 at 14:00 IST on BSE after the company will observe on need basis few days as no production days at some of its plants during December year-end.

The announcement was made after market hours yesterday, 8 December 2016.

On the BSE, 43,890 shares were traded on the counter so far as against the average daily volumes of 78,604 shares in the past one quarter. The stock had hit a high of Rs 1,217.45 and a low of Rs 1,190 so far during the day.

The stock had hit a record high of Rs 1,508.80 on 9 August 2016 and a 52-week low of Rs 1,092 on 12 February 2016. It had underperformed the market over the past one month till 30 November 2016, sliding 12.88% compared with the Sensex's 4.57% fall. The scrip had also underperformed the market in the past one quarter, declining 19% as against the Sensex's 5.96% fall.

The large-cap company has equity capital of Rs 310.55 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) announced that the company will be undertaking scheduled maintenance shutdown at some of its automotive and tractor plants in December, 2016. It will also observe on need basis few days as no production days at some of its automotive and/or tractor plants including Chakan plant of its wholly owned subsidiary Mahindra Vehicle Manufacturers as part of its efforts to optimize inventories during December year-end.

The management does not envisage any adverse impact on the availability of products in the market due to adequacy of stocks to serve the market requirements.

M&M's net profit rose 27.1% to Rs 1163.27 crore on 13.8% growth in net sales to Rs 10411.67 crore in Q2 September 2016 over Q2 September 2015.

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M&M enjoys a leadership position in tractors and utility vehicles in India.

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First Published: Dec 09 2016 | 2:13 PM IST

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