M&M revs up after announcing price hike

Mahindra & Mahindra rose 0.86% to Rs 1,443.15 at 09:45 IST on BSE after the company announced that it plans to increase prices of its passenger and commercial vehicles by up to 3% effective from 1 January 2018.

The announcement was made after market hours yesterday, 14 December 2017.

Meanwhile, the S&P BSE Sensex was up 346.85 points, or 1.04% to 33,593.55.

On the BSE, 11,000 shares were traded in the counter so far, compared with average daily volumes of 1.09 lakh shares in the past one quarter. The stock had hit a high of Rs 1,449.45 and a low of Rs 1,439 so far during the day. The stock had hit a 52-week high of Rs 1,459.50 on 12 June 2017. The stock had hit a 52-week low of Rs 1,142.05 on 27 December 2016.

The large-cap company has equity capital of Rs 310.80 crore. Face value per share is Rs 5.

Rajan Wadhera, President - Automotive Sector, Mahindra & Mahindra said that the company was holding back on price hikes and absorbing the higher input costs for a while, but with the increase in commodity prices it had to take a price increase.

Mahindra & Mahindra (M&M) reported 24.8% rise in net profit to Rs 1331.57 crore on 14% rise in net sales to Rs 12182.07 crore in Q2 September 2017 over Q2 September 2016.

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

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