Rajit Rajoriya, Equity Research Associate, Angel Broking Ltd
"Standalone Net sales of M&M declined by 56% to Rs.5602Cr broadly in line with street estimates. Operating margin fell by 370bp to 10.3% against market expectation of 10.5%. Net profit fell 95% to Rs.112Cr against expectation of fall of 80%. Vehicle sales numbers were down 78% in Q1FY21, However tractor sales number fell by 22%. Company took a major hit due to the pandemic situation with complete washout in April month in all categories except tractors. Low pipeline inventory coupled with the challenges of ramping up production due to supply chain issues affected the Company's sales. However, strong demand from the farm equipment category helped in a major way. Tractor demand is likely to remain buoyant in coming quarters but the Utility vehicles category is showing no good sign of demand revival."
Shares of MAHINDRA & MAHINDRA LTD. was last trading in BSE at Rs.600.6 as compared to the previous close of Rs. 609.55. The total number of shares traded during the day was 197759 in over 4987 trades.
The stock hit an intraday high of Rs. 616.05 and intraday low of 599. The net turnover during the day was Rs. 119937326.