M&M nudges higher on capex at Chakan plant

Mahindra & Mahindra was up 0.4% at Rs 730 at 9:20 IST on BSE after the company said it would make an additional investment of over Rs 500 crore at its Chakan plant in Maharashtra.

The announcement was made after market hours yesterday, 19 February 2018.

Meanwhile, the S&P BSE Sensex was up 35.58 points or 0.11% at 33,810.24.

On the BSE, 1,811 shares were traded on the counter so far as against average daily volumes of 1.85 lakh shares in the past one quarter. The stock had hit a high of Rs 730.75 and a low of Rs 726 so far during the day. The stock had hit a record high of Rs 802.80 on 1 February 2018 and a 52-week low of Rs 612.50 on 28 September 2017.

 

The stock had outperformed the market over the past one month till 19 February 2018, sliding 4.82% compared with the Sensex's 4.89% fall. The stock had also outperformed the market over the past one quarter, advancing 2.65% as against the Sensex's 1.3% rise. The scrip had, however, underperformed the market over the past one year, surging 10.43% as against the Sensex's 18.64% rise.

The large-cap company has equity capital of Rs 621.60 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) announced that it would make an additional investment at its Chakan plant in Maharashtra. As part of its expansion plans, the company will invest over Rs 500 crore in its electric vehicle (EV) project under the new EV policy of the Government of Maharashtra.

The investment for EV and EV components is in addition to its ongoing expansion plan in Chakan which includes an initial investment of Rs 6500 crore. This additional investment of Rs 500 crore will be utilized towards product development and capacity enhancement for EVs and related components.

M&M's net profit rose 12.5% to Rs 1215.91 crore on 4.6% growth in net sales to Rs 11577.78 crore in Q3 December 2017 over Q3 December 2016.

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

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