M&M gains in volatile trade after declaring good Q3 result

Mahindra & Mahindra rose 0.27% to Rs 752 at 12:21 IST on BSE after net profit rose 12.5% to Rs 1215.91 crore on 4.45% rise in total income to Rs 12060.12 crore in Q3 December 2017 over Q3 December 2016.

The results were announced after market hours on Friday, 9 February 2018.

Meanwhile, the S&P BSE Sensex was up 238.90 points or 0.7% at 34,244.66.

On the BSE, 92,000 shares were traded in the counter so far compared with average daily volumes of 1.89 lakh shares in the past one quarter. The stock had hit a high of Rs 770 and a low of Rs 751.10 so far during the day. The stock had hit a record high of Rs 802.80 on 1 February 2018. The stock had hit a 52-week low of Rs 612.50 on 28 September 2017.

The stock had underperformed the market over the past 30 days till 9 February 2018, falling 1.95% compared with 1.44% fall in the Sensex. The scrip, however, outperformed the market in past one quarter, rising 7.64% as against Sensex's 2.07% rise. The scrip, however, underperformed the market in past one year, gaining 17.36% as against Sensex's 20.02% rise.

The large-cap company has equity capital of Rs 621.60 crore. Face value per share is Rs 5.

Net profit of the combined entity Mahindra & Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML) rose 17% to Rs 1306 crore on 10% rise in revenues and other income to Rs 11593 crore in Q3 December 2017 over Q3 December 2016.

MVML was set up as a 100% subsidiary of M&M with a view to source contemporary products for expanding the market offerings of the company.

In its outlook, M&M said that a balanced and pro-agrarian budget should help prop farm incomes and stimulate rural consumption demand and further nurture the green shoots of economic recovery. With the effects of some of the recent transient factors fading away and the economy adjusting to GST implementation, growth momentum is likely to stay buoyant. However, rising global crude oil prices and any sudden asset market stall pose key risks to the outlook.

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

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