M&M gains after announcing incorporation of a subsidiary company in Mexico

Mahindra & Mahindra rose 0.64% to Rs 1,459.15 at 09:48 IST on BSE after the company announced incorporation of a subsidiary company in Mexico viz. Mahindra Mexico S. de. R.L.

The announcement was made after market hours yesterday, 17 August 2016.

Meanwhile, the S&P BSE Sensex was up 122.65 points or 0.44% at 28,128.02

On BSE, so far 6,639 shares were traded in the counter as against average daily volume of 1.03 lakh shares in the past one quarter. The stock hit high of Rs 1,463.90 and low of Rs 1,449.85 so far during the day. The stock had hit a record high of Rs 1,508.80 on 9 August 2016. The stock had hit a 52-week low of Rs 1,092 on 12 February 2016. The stock had underperformed the market over the past 30 days till 17 August 2016, falling 0.34% compared with 0.78% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, rising 10.73% as against Sensex's 10.26% rise.

The large-cap company has an equity capital of Rs 310.55 crore. Face value per share is Rs 5.

Mahindra Mexico S. de. R.L. was incorporated as a 99% subsidiary of Mahindra USA Inc, which in turn is a 100% subsidiary of Mahindra & Mahindra (M&M). Mahindra USA Inc. has invested Mexican peso 9,900 for its 99% stake in the newly formed Mexican company. Mahindra Mexico S. de. R.L. was incorporated to promote Mahindra Brand in Mexico and expand its reach into Mexico to promote higher horsepower (HP) tractors, M&M said.

M&M's net profit rose 12.37% to Rs 955.21 crore on 13.56% growth in total income to Rs 11348.62 crore in Q1 June 2016 over Q1 June 2015.

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

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