Mahindra & Mahindra fell 0.72% to Rs 933.80 at 9:37 IST on BSE after the company announced a reduction in prices of its passenger vehicle portfolio ranging from Rs 13,000 to Rs 49,000.
The company made the announcement after market hours on Wednesday, 19 February 2014.
Meanwhile, the BSE Sensex was down 122.05 points, or 0.59%, to 20,600.92.
On BSE, so far 8,704 shares were traded in the counter, compared with an average volume of 79,847 shares in the past one quarter.
The stock hit a high of Rs 938.80 and a low of Rs 934 so far during the day. The stock hit a record high of Rs 1,026.45 on 20 May 2013. The stock hit a 52-week low of Rs 741.50 on 28 August 2013.
The stock had outperformed the market over the past one month till 19 February 2014, rising 4.69% compared with the Sensex's 1.62% fall. The scrip had outperformed the market in past one quarter, sliding 0.53% as against Sensex's 0.80% decline.
The large-cap company has an equity capital of Rs 307.94 crore. Face value per share is Rs 5.
Mahindra & Mahindra (M&M) will also reduce prices of its premium SUV, the Rexton by up to Rs 92,000. The reduction is due to the lower excise duties announced in the Interim Budget and would be effective immediately, M&M said in a statement.
Commenting on the price reduction, Pravin Shah, Chief Executive, Automotive Division, M&M said, "We are delighted at the Interim Budget announcements which have been taken to boost the automotive industry. We are confident that the reduction in prices by Mahindra as well as other auto companies would provide the much needed fillip to the auto industry. The prices of our range of commercial vehicles are also being reduced."
The government had reduced excise duty on cars, commercial vehicles, sports utility vehicles (SUVs), motorcycles and scooters for the period up to 30 June 2014 in the Interim Budget for 2014-15 announced on Monday, 17 February 2014.
For small cars, motorcycles, scooters and commercial vehicles the excise duty is proposed to reduce from 12% to 8%. For SUVs, the excise duty is proposed to reduce from 30% to 24%. For large and mid-segment cars, the excise duty is proposed to reduce from 27/24% to 24/20%.
The combined net profit of M&M and Mahindra Vehicle Manufacturers (MVML) rose 9.3% to Rs 1000.10 crore on 2.18% decline gross revenue and other income to Rs 11270 crore in Q3 December 2013 over Q3 December 2012.
The combined operating margin of M&M and its 100% subsidiary MVML edged up to 15% in Q3 December 2013, from 13.5% in Q3 December 2012.
MVML, located at Chakan near Pune, was set up as a 100% subsidiary of the company with a view to sourcing contemporary products for expanding the market offerings of the company.
The Mahindra Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheeler industries.
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