M&M at new high on healthy October sales numbers

The stock has rallied 10% in past seven trading session post Q2 earnings as compared to 4.5% rise in auto index.

Mahindra and Mahindra (M&M) is trading higher by around 2% at Rs 915, extending its previous day’s 2% gain on the Bombay Stock Exchange, after reporting highest ever monthly sales of 53,438 units in October 2012. The company had sold 41,506 units in the same month last year.

The stock currently trading at its record high has rallied 10% in past seven trading sessions after the company reported a better-than-expected 22% year-on-year growth in net profit at Rs 902 crore for the quarter ended September 2012, driven by surging demand for diesel-driven SUVs. Analysts tracking the company were expecting net profit at Rs 820-830 crore for the reporting quarter.

The benchmark index Sensex has fallen marginally by 0.10%, while auto index up 4.5% during the same period. The stock opened at Rs 904 and has seen a combined 268,625 shares changing hands on the counter in morning trades.