Mahindra & Mahindra rose 2.18% to Rs 1,384.20 at 15:20 IST on BSE after the company announced revised prices of its vehicles pursuant to the implementation of GST, with immediate effect.
The announcement was made after market hours yesterday, 4 July 2017.Meanwhile, the S&P BSE Sensex was up 36.84 points or 0.12% at 31,246.63
On the BSE, 66,000 shares were traded on the counter so far as against the average daily volumes of 1.64 lakh shares in the past one quarter. The stock had hit a high of Rs 1,395 and a low of Rs 1,359.60 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 1,141.80 on 2 December 2016.
The stock had underperformed the market over the past one month till 4 July 2017, falling 4.83% compared with 0.32% decline in the Sensex. The scrip, however, outperformed the market in past one quarter, rising 5.02% as against Sensex's 4.12% rise. The scrip had also underperformed the market in past one year, declining 7.01% as against Sensex's 14.88% rise.
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 prices of vehicles for end-customers on large utility vehicles (UVs) and sports utility vehicles (SUVs) have been reduced by an average of 6.9%, while those that come under small car segment have been reduced by an average of 1.4%. Similarly, end-customer prices have been reduced by an average of 1.1% for small commercial vehicles and 0.5% for light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs).
Since the GST rates on hybrid vehicles are significantly higher than that in the pre-GST regime, the prices for the end-customers of hybrid vehicles have been increased marginally. These price changes to end-customers will vary across states or even cities within a state, due to the differing levels of pre-GST local taxes. These price changes to end-customers will vary across states or even cities within a state, due to the differing levels of pre-GST local taxes.
The effect of the imposition of GST for tractors, which were not levied an excise duty, should be neutral given the input tax credits that would be available to OEMs. Hence there will be no change for end-customer prices for tractors. The Goods and Services Tax (GST) was implemented in the country with effect from 1 July 2017 to bring in one uniform tax across the country.
M&M's net profit rose 19.9% to Rs 725.16 crore on 3.3% rise in net sales to Rs 11125.15 crore in Q4 March 2017 over Q4 March 2016.
M&M enjoys a leadership position in tractors and utility vehicles in India.
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