April sales accelerates Mahindra

DALAL STREET SPIKES

Automobile major Mahindra & Mahindra (M&M) ended 2.96 per cent higher on the BSE after the company reported a surge in tractor sales in April as against the previous month.

The stock finally closed at Rs 464.85 with the volume accounting for more than 2.28 lakh shares on the BSE. According to reports, M&M's tractor sales have surged 43 per cent in April 2004 to 4,116 units.

Analysts tracking the sector said the automobile sector looks attractive on the back of a revival in domestic demand and future growth prospects.

Market analysts said automobile stock are witnessing bargain hunting at lower levels after the recent fall in stock prices. The M&M stock has been volatile ranging between a high of Rs 487.60 on April 22, 2004, to Tuesday's close of Rs 464.

M&M recently completed a $100 million FCCB issue. The issue was oversubscribed and was priced at zero coupon for a five-year tenure with a redemption price of Rs 117.49 to a yield of 3.25 per cent till maturity. The conversion price was fixed at Rs 647.05, which is at a 39.4 per cent premium to the prevailing market price of Rs 464.