Mahindra Share Price Falls as Sales Decline in November

Auto major Mahindra & Mahindra yesterday posted a 21.85 per cent fall in total sales at 32,499 units in the month of November. The company had sold 41,590 units in the same month previous year, M&M informed in a statement. In the domestic market, sales were down by 24.29 per cent at 29,814 units last month as compared to 39,383 in November 2015, the company added.

Exports during the month increased by 22 per cent to 2,685 units as compared to 2,207 units in November last year, Mahindra & Mahindra stated. Sales of passenger vehicles, encompassing the Scorpio, XUV500, Xylo, Bolero and Verito were down by 33 per cent to 13,217 units as compared with 19,662 units in the same month previous year. Commercial vehicle sales were down by 15 per cent at 12,644 units in the month of November as compared to 14,801 units in the year-ago period, M&M stated. Meanwhile, Mahindra share price closed trading 1.13 per cent lower on the NSE.

M&M Chief Executive Pravin Shah said that while they expected an improved auto industry performance on account of the festive season and other positive parameters like rural demand and interest rates softening, the sudden announcement of demonetization had brought in an immediate uncertainty and disruption.

He added that although demonetization was a good and welcome step in the mid to long term, it had dampened the overall sentiment, leading to postponed buying, resulting in a major slump in volumes during November.

Out of the 1700 Shares listed on the NSE, Mahindra is one of the top 500 Stocks, identified by Dynamic Levels Researchers and stock analysts. The scrip is a well analyzed stock, based on Dynamic Levels’ technical and fundamental research.

To seek information on the resistance and support levels of the scrip and know more about its fundamentals and financials, please pay a visit to Mahindra share price history.

Mahindra sells BabyOye To FirstCry For Rs. 362.1 cr

After obtaining online maternity and childcare brand BabyOye, a year later, Mahindra & Mahindra (M&M) disclosed that it will sell its franchise business to competitor FirstCry for Rs. 362.1 crore on the basis of slump sale and also invest in it.

As per Mahindra’s BSE filling, a business transfer agreement has been accomplished by and between Mahindra Retail Pvt Ltd (MRPL), a subsidiary of the company, Brainbees Solutions (FirstCry) and founder of FirstCry in order to transmit the franchise division of MRPL (BabyOye) as a going concern on a slump sale basis to FirstCry. The aggregate lump sum consideration for the transfer of the business amounts to Rs. 362.1 crore, it further added. The Board of Directors of the two companies have already sanctioned this strategic step.

Further speaking on the agreement, the company said that on the basis of the structure of the transaction, FirstCry and Mahindra Retail have combined their operations, with Mahindra Retail selling its franchise business to FirstCry, and performing all company stores under a FirstCry master franchise agreement. It further added that FirstCry also raises $34 million (approx Rs. 226 crore) of new equity capital from the Mahindra Group, PE fund Adveq, Kris Gopalakrishnan and participation from all current shareholders.

Mahindra Retail has more than 120 stores all over the country performing under the 'babyOye by Mahindra' brand. The consolidated entity will manage its business under the brand name FirstCry.com - A FirstCry Mahindra Venture. FirstCry.com is going to have a parent base of more than 4 million, a footprint of over 300 stores spread all over 125 cities.

FirstCry was incorporated by Supam Maheshwari , a successful serial entrepreneur, who had earlier built and successfully sold Brainvisa Technologies. He is going to continue as the CEO of the combined entity FirstCry. Mahindra Retail acquired Babyoye.com in February 2015.

As on 14^th Oct, Mahindra share price settled at Rs. 1357.10. The stock traded at a fall of 0.86 per cent at Rs. 1358.00.

Mahindra is analyzed by Dynamic Levels as the top 500 performing stocks for the June quarter among the 1700 stocks which are listed on the NSE.  Mahindra is fundamentally strong and is safe for investment, as per Dynamic analysts

In order to know about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a visit to Mahindra share price history.

Ind-Ra Assigns Mahindra Rs 4.75 bn NCDs Final ‘ IND AAA’/Stable

In a filing to NSE on 26^th September Mahindra (M&M) said, India Ratings and Research (Ind-Ra) has assigned the Company INR 4.75 bn unsecured, non-convertible debenture (NCD) programmes a final ‘IND AAA’ rating with Stable Outlook.

rating action is based on the receipt of final documentation conforming to information which has been previously shared by the company with the agency.

The proceeds of the NCDs (non-convertible debenture) are to be used for capex, long term working capital expenditure as well as other general corporate purposes. These NCDs are being issued with a face value of INR 1 mn and entail a coupon of 7.57 per cent, which will be paid yearly. They have a tenor of 10 years with a bullet payment at the end of the tenor.

Mahindra has maintained its leadership position in the domestic market for tractors as well as utility vehicles, with market shares of 40.9 per cent and 37.9 per cent (in volume terms), respectively, in Financial Year 2016. During April-June 2016, its market share in the tractor segment improved to 43.9 per cent, while in the utility vehicle segment it declined to 31.6 per cent. The decline is mainly attributed to new launches by peers in this period. The company is also the number one player in the light commercial vehicle goods carrier segment (below 3.5 tonnes), with a share of 51 per cent and 49.4 per cent, respectively, in FY16 and Q1 FY17.

Mahindra share price opened at Rs 1,380.00 this morning from a previous closing of Rs 1,380.20. The intraday high and the intraday low are Rs 1,390.75 and Rs 1,379.10 respectively.

At 10:40 AM, a total of 1,49,902 shares of the company have been traded on the counter of NSE aggregating to a total amount of Rs 2,077.64 lacs. Mahindra is one of the top 500 shares recommended by Dynamic Levels.

It rained sales in August for Mahindra

Today, Mahindra & Mahindra, the Auto major, reported a 14 per cent rise in total sales to 40,591 units in August. The company had sold 35,634 units in the same month last year. Mahindra share price closed with the rise of almost 2% in today’s trade.

In the domestic market, Mahindra sales increased by 15 per cent and stood at 36,944 units last month compared with 32,122 in August 2015. Exports went up by 4 per cent to 3,647 units during the month as against 3,512 in August last year.

Meanwhile, Mahindra share price closed at Rs. 1453.55

The passenger vehicles sales, including Scorpio, XUV500, Xylo, Bolero, and Verito, also went up 29 per cent and were reported to be at 18,246 units, from 14,198 units in the same month last year. Commercial vehicle sales rose 7 per cent to 13,993 units in August as compared to 13,023 in the year-ago period.

M&M Chief Executive of auto division ,Pravin Shah said that good monsoon and new product launches had helped the auto industry in performing positively. Coupled with this, the uncertainty surrounding diesel vehicles has been lifted by the honorable Supreme Court, providing the customer the choice to buy the preferred vehicle which will help improve sentiment, going forward.

Mahindra is the top 500 pick by Dynamic Levels for the quarter. Mahindra share price last closed at Rs. 1436, near its first support level. For details on the support and resistance level of Mahindra, drop by at Mahindra share price forecast page of Dynamic Levels website.