Mahindra & Mahindra rose 0.89% to Rs 1,178.20 at 14:37 IST on BSE after the company announced a restructuring of its businesses under Dr. Pawan Goenka, Managing Director of the company.
The announcement was made during trading session today, 28 December 2016.Meanwhile, the S&P BSE Sensex was up 44.81 points or 0.17% at 26,258.25.
On the BSE, 22,000 shares were traded on the counter so far as against the average daily volumes of 81,382 shares in the past one quarter. The stock had hit a high of Rs 1,184.40 and a low of Rs 1,170 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 27 December 2016, sliding 0.72% compared with the Sensex's 0.39% fall. The scrip had also underperformed the market in the past one quarter, declining 14.91% as against the Sensex's 7.12% fall.
The large-cap company has equity capital of Rs 310.55 crore. Face value per share is Rs 5.
Mahindra & Mahindra (M&M) formed a new sector, the Agriculture Sector. This is in addition to its two existing sectors, namely- Automotive and Farm Equipment Sectors.
The company has also announced the appointment of Rajan Wadhera as the incoming President of the Automotive Sector. Wadhera will take over from Pravin Shah, the current President & Chief Executive (Automotive) M&M, as he retires on 31 March 2017.
Subsequent to the restructuring announcement, the respective business heads have also been re- designated. Accordingly, Rajesh Jejurikar will now be the President of the Farm Equipment Sector and Ashok Sharma, the President, of the Agriculture Sector. All three sector Presidents in their respective capacities will report to Pawan Goenka. All changes will be effective 1 April 2017.
Mahindra Trucks and Buses and the construction equipment businesses will now be an integral part of the Automotive sector and will report to Rajan Wadhera.
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.
M&M enjoys a leadership position in tractors and utility vehicles in India.
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