Mahindra & Mahindra lost 0.16% to Rs 850.65 at 14:05 IST on BSE after the company said it will be raising the prices of its passenger as well as its commercial vehicles by up to 2% with effect from 1 October 2013.
Meanwhile, the S&P BSE Sensex was down 50.02 points or 0.25% at 19,843.83.
On BSE, 32,000 shares were traded in the counter as against average daily volume of 1.77 lakh shares in the past one quarter.
The stock was volatile. The scrip trimmed intraday losses after the company's announcement in afternoon trade. The stock had lost as much as 1.06% at the day's low of Rs 843 in early afternoon just ahead of the announcement. The stock rose as much as 0.75% at the day's high of Rs 858.45 so far during the day. The stock had hit record high of Rs 1,026.45 on 20 May 2013. The stock had hit a 52-week low of Rs 741.50 on 28 August 2013.
The stock had underperformed the market over the past one month till 26 September 2013, gaining 5.37% compared with the Sensex's 7.2% rise. The scrip had also underperformed the market in past one quarter, declining 6.59% as against Sensex's 7.23% rise.
The large-cap company has equity capital of Rs 307.94 crore. Face value per share is Rs 5.
Mahindra & Mahindra (M&M) said that the price hike would be in the range of Rs 6,000 to Rs 20,000 depending on the vehicle model. The increase is primarily due to higher input costs, devaluation of the rupee and increase in some raw material costs, the company said in a statement.
Commenting on the price hike, Pravin Shah, Chief Executive, Automotive Division, M&M said: "We have been holding back prices for a while but now it has become necessary to raise them due to increasing input costs, devaluation of the rupee and increase in some raw material costs. As always, Mahindra remains committed to its customers."
M&M's net profit rose 29.3% to Rs 937.91 crore on 7.1% growth in net sales to Rs 9906.23 crore in Q1 June 2013 over Q1 June 2012.
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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