M&M gains on reports of mulling petrol engines after temporary ban on diesel vehicles in Delhi

Mahindra & Mahindra rose 2.48% to Rs 1,275.20 at 15:09 IST on BSE on reports that the company is developing petrol engines for its existing vehicles after the Supreme Court temporarily banned the sale of large diesel cars in New Delhi.

Meanwhile, the S&P BSE Sensex was up 229.34 points or 0.9% at 25,748.56.

On BSE, so far 67,000 shares were traded in the counter as against average daily volume of 83,316 shares in the past one quarter.

The stock hit a high of Rs 1,284.15 and a low of Rs 1,241.80 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 1,095 on 7 September 2015.

The stock had underperformed the market over the past one month till 18 December 2015, sliding 2.59% compared with Sensex's 0.14% rise. The scrip had, however, outperformed the market in past one quarter, gaining 3.55% as against Sensex's 2.67% fall.

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

According to reports, Mahindra & Mahindra (M&M) is developing petrol engines for its existing vehicles in the wake of recent temporary ban imposed by the Supreme Court on sale of large diesel cars in Delhi. It may be recalled that the Supreme court had last week imposed a ban on registration of new diesel sport utility vehicles (SUVs) and private cars in Delhi with an engine capacity of over 2000cc until 31 March 2016, to rein in the alarming pollution levels in the capital city.

M&M is among the worst hit by the ban because its mainstay is diesel sport utility vehicles (SUVs) with engine capacity of more than 2,000 cc that cannot be sold in the capital until 31 March 2016.

M&M's net profit declined 2.4% to Rs 923.56 crore on 1.8% decline in net sales to Rs 9121.79 crore in Q2 September 2015 over Q2 September 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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