Mahindra regains lost ground on better results

DALAL STREET SPIKES

Tractor and utility vehicle major, Mahindra and Mahindra witnessed volatile trades with the stock crashing over 8 per cent in the morning trade to touch an intra-day low of Rs 392.

However, impressive Q4 results of 199 per cent growth in its net profits saw the stock recovering at the fag-end of the trading session to close at Rs 420.40, still 2.06 per cent down from its previous close.

The counter witnessed aggressive volumes of 21.51 lakh shares on the BSE. Market analysts said that the heavy discount in the M&M counter in the derivatives segment forced investors to buy futures and sell the stock in the spot market.

For Q4 ended March 31, 2004, M&M reported 199 per cent growth in net profits to Rs 145.63 crore compared with a net profit of Rs 48.67 crore in Q4 ended March 31, 2003.

The figures beat market expectations by a wide margin. M&M's total income (net of excise) surged 35 per cent to Rs 1,545.04 crore from Rs 1,142.48 crore.