M&M extends fall on disappointing December sales figures

The stock was down over 4% in past two trading sessions on 5.7% yoy declined in total sales at 56,648 units in December.

Mahindra and Mahindra (M&M) is trading lower by 3% at Rs 910, extending its 1.3% yesterday’s fall, on reporting a 5.7% year-on-year (yoy) declined in total sales at 56,648 units in the month of December 2013.

Continued weakness in the automotive segment led by significant slowdown in utility vehicle sales was only partially offset by a better-than-expected performance in the tractor segment.

The tractor segment sustained its strong growth traction, reporting an increase of 15.4% yoy, on the back of good monsoons and better farm output.

The automotive segment (down 12.6% yoy) however, continued to report a disappointing performance, led by a sharp decline of 27.8% yoy in utility vehicle sales.

Utility vehicle sales of the company remain impacted by a sluggish demand environment and increased competition, says analyst at Angel Broking in a note.