Mahindra & Mahindra was up 0.34% to Rs 738.15 at 12:47 IST on BSE after the company announced collaboration with LG Chem, in the field of advanced Li-ion battery technology.
The announcement was made after market hours yesterday, 26 February 2018.Meanwhile, the S&P BSE Sensex was down 79.76 points or 0.23% at 34,365.99.
On the BSE, 58,000 shares were traded on the counter so far as against average daily volumes of 2.10 lakh shares in the past one quarter. The stock had hit a high of Rs 742 and a low of Rs 732 so far during the day. The stock had hit a record high of Rs 802.80 on 1 February 2018 and a 52-week low of Rs 612.50 on 28 September 2017.
The stock had outperformed the market over the past one month till 26 February 2018, sliding 2.62% compared with the Sensex's 4.45% fall. The stock had also outperformed the market over the past one quarter, advancing 2.55% as against the Sensex's 2.28% rise. The scrip had, however, underperformed the market over the past one year, surging 12.44% as against the Sensex's 19.22% rise.
The large-cap company has equity capital of Rs 621.60 crore. Face value per share is Rs 5.
LG Chem is Korea's leading manufacturer of advanced batteries. Under the aegis of this collaboration, LG Chem will develop a unique cell exclusively for India application and will also supply Li-ion cells based on NMC (nickel-manganese-cobalt) chemistry with high energy density. These cells will be deployed in the Mahindra and SsangYong range of electric vehicles (EVs). LG Chem will also design the Li-ion battery modules for Mahindra Electric, which in turn will create battery packs for the Mahindra Group and other customers.
In keeping with the investment plan already announced by Mahindra last year, a battery module plant is also under development. The plant will have a capacity of half a million battery modules per annum and will also house a battery module pack line and the entire facility for both module and pack is expected to go into production in the last quarter of FY 2020.
M&M's net profit rose 12.5% to Rs 1215.91 crore on 4.6% growth in net sales to Rs 11577.78 crore in Q3 December 2017 over Q3 December 2016.
M&M enjoys a leadership position in tractors and utility vehicles in India.
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