M&M gains after its agri business forays into dairy sector

Mahindra & Mahindra rose 2.07% to Rs 1,252.65 at 14:30 IST on BSE after the company announced that its Mahindra Agri Business forayed into dairy business with the launch of its branded dairy products, 'Saboro'.

The announcement was made during market hours today, 22 March 2016.

Meanwhile, the S&P BSE Sensex was down 152.77 points or 0.8% at 25,132.60.

On BSE, so far 69,699 shares were traded in the counter as against average daily volume of 74,227 shares in the past one quarter. The stock hit high of Rs 1,263.40 and low of Rs 1,226.10 so far during the day. The stock had hit a record high of Rs 1,441.45 on 7 August 2015. 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 one month till 21 March 2016, declining 0.26% compared with Sensex's 6.65% gains. The scrip had also underperformed the market in past one quarter, dropping 3.89% as against Sensex's 1.75% fall.

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

Mahindra & Mahindra (M&M) said that it has launched Saboro milk in Indore, Madhya Pradesh. The company will introduce a range of fresh dairy products in Madhya Pradesh over the next one year. The company under the Saboro brand, will offer an assortment of products, the first of which is the Saboro pouch available in four variants- double toned milk, full cream milk, protein rich milk and cream rich milk. The company will be investing around Rs 5 crore in the first year for the set up of village level collection centre (VLC), infrastructure and brand building. The company expects to achieve around 5% market share in the first year of Rs 260 crore industry in Indore.

M&M's net profit declined 14.2% to Rs 807.99 crore on 17.1% growth in net sales to Rs 10900.39 crore in Q3 December 2015 over Q3 December 2014.

Mahindra Group enjoys a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two-wheeler industries.

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