M&M scales record high on expansion plans

Mahindra & Mahindra rose 0.22% to Rs 1,410 at 09:18 IST on BSE after the company said it would make an additional investment at its Chakan plant in Maharashtra.

Meanwhile, the BSE Sensex was up 161.30 points, or 0.61%, to 26,799.41

On BSE, so far 1,421 shares were traded in the counter, compared with an average volume of 2.80 lakh shares in the past one quarter.

The stock hit a record high of Rs 1,414.80 in intraday trade today, 1 September 2014. The stock hit low of Rs 1,405 so far during the day. The stock hit a 52-week low of Rs 741.50 on 28 August 2013.

The large-cap company has an equity capital of Rs 307.94 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) after market hours on Thursday, 28 August 2014 said it would make an additional investment at its Chakan plant in Maharashtra. As part of its expansion plans, the company will invest additional Rs 4000 crore over a 7-year period taking the total investment in Chakan to Rs 8000 crore.

A total of Rs 4000 crore will be utilized towards infrastructure development, product development and capacity expansion for vehicles to be rolled out from the Chakan plant. The Government of Maharashtra has conferred the status of 'Ultra Mega Project' to this proposed expansion. In addition there will be further investment by suppliers to cater M&M's increased requirement, the company said in a statement.

Speaking on the occasion, Dr. Pawan Goenka, Executive Director, M&M said, I am sure that with this expansion, Mahindra will continue to play an integral part in the development of not only the region of Chakan but the state of Maharashtra, as well as the Indian auto industry in times to come.

On a comparable basis, the combined net profit of M&M and its 100% subsidiary Mahindra Vehicle Manufacturers (MVML) rose 4.3% to Rs 896.40 crore on 1.09% decline in gross revenue plus other income to Rs 10823.30 crore in Q1 June 2014 over Q1 June 2013.

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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