You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

M&M turns volatile on weak November sales

Capital Market 

Mahindra & Mahindra (M&M) was up 0.19% to Rs 531.05 after the company announced auto sales figures for November 2019 on Sunday, 1 December 2019.

The scrip fluctuated between gains and losses as it traded in the range of Rs 523.95 and Rs 533 so far during the day.

M&M said its overall automotive sales (domestic+exports) stood at 41,235 vehicles in November 2019, compared to 45,101 vehicles during November 2018, down by 9% on a year-on-year basis.

Total domestic sales fell 7% to 38,614 units while the total exports slumped 26% to 2,621 units in November 2019 over November 2018.

M&M's Farm Equipment Sector sold 21,032 units during November 2019, down by 19% from 25,949 units in November 2018.

Domestic tractor sales in November 2019 were down 18.86% to 20,414 units, as against 25,159 units during November 2018. Exports for the month shrunk 21.72% to 618 units in November 2019 from 790 units November 2018.

Commenting on the performance, Veejay Ram Nakra, chief of sales and marketing, Automotive division, M&M said, "The month post festive season is historically a lean month for the automotive industry. Consumer demand, especially for passenger vehicles, typically picks up in the year-end that is in December. Therefore, we expect December to pan out better for the automotive industry."

M&M's consolidated net profit fell 78.3% to Rs 348.14 crore on a 5.9% decline in net sales to Rs 23,935.93 crore in Q2 September 2019 over Q2 September 2018.

M&M operates in automotive segment comprising of sales of automobiles, farm equipment and sale of spare parts.

On the technical front, the stock's RSI (relative strength index) stood at 30.14, indicating weakness in the stock. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day moving average (DMA) placed at Rs 568.12 and also its 200-day moving average (DMA) placed at Rs 608.80.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 02 2019. 10:48 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU