Mahindra gains on earnings hopes of Korea unit

Reuters Market Eye - Shares in Mahindra and Mahindra Ltd gain 3.8 percent, after stocks of its subsidiary Ssangyong Motor Co Ltd <003620.KS> hit a 16-month high, dealers say.

Shares in Ssangyong Motor jumped as much as 13.5 percent on Monday amid expectations the ailing automaker may post a profit this year.

Ssangyong Motor's factory utilisation and sales were growing faster than expected, and the company was seen returning to profit this year, said Yang Hee-joon, an analyst at Taurus Investment & Securities, in a note on Monday.

Mahindra and Mahindra will raise its holding in Ssangyong Motor to 72.85 percent in an 80 billion Korean won investment, the South Korean carmaker said in a statement on February 14. The payment is expected to be made on May 22.

 

(Reporting by Abhishek Vishnoi)