Shares of Mahindra and Mahindra (M&M) hit their all-time high today a day after the homegrown car manufacturer launched the latest edition of its popular SUV ‘Scorpio-N.’ The automaker claimed that the new SUV was the biggest, most powerful and most advanced version among all Scorpio models till date.
M&M stock zoomed to a record high of Rs 1,114.20, rising 3.47 per cent against its previous close of Rs 1082.05 on BSE. The large cap stock has gained 11.67 per cent in four days. Shares of M&M are trading higher than 5-day, 20-day, 50 day, 100-day and 200-day moving averages. M&M stock has gained 40.42 per cent in a year and risen 33.08 per cent in 2022.
Total 0.58 lakh shares of the firm changed hands amounting to a turnover of Rs 6.44 crore on BSE. Market cap of the firm rose to Rs 1,39,007 crore.
One can book the new Scorpio-N from July 30, 2022, at Mahindra’s website and dealerships as well. The price for the new SUV starts at Rs 11.99 lakh for the entry trim and goes up to Rs 19.49 lakh (ex-showroom) for the top-end variant. The new Scorpio-N will be available in five variants – Z2, Z4, Z6, Z8 and Z8 Luxury.
Read More: Mahindra launches its biggest, most powerful Scorpio-N starting at Rs 11.99 lakh
Brokerages are bullish on the prospects of the stock post the launch of Scorpio-N.
CLSA has given a target of Rs 1,356 on the stock with a buy call. The target price is 25.31 per cent higher than the previous close of Rs 1082.05 on BSE.
“Scorpio-N will boost M&M’s SUV line-up. Advanced features at lower price points-a great value proposition for customers,” CLSA said. It sees room for further improvement in volumes if chip supply eases faster.
Morgan Stanley is overweight on the stock with a target price of Rs 1,198.
On the Scorpio-N launch, Morgan Stanley said,” Multiple new launches in the SUV segment underscore SUV focus of OEMs & also point towards easing supply chain issues.” It believes personal vehicles will continue to lead recovery in autos.
Nomura has given a buy call with a target of Rs 1,308.
“Another potential winner. Believe new Scorpio-N should further support to transform M&M’s image into that of a lifestyle SUV maker, which is expected to pay rich dividends in future” the international brokerage said.
UBS has given a buy call with a target price of Rs 1,250.
“With Scorpio-N, ride quality, handling, design and features have been significantly enhanced. Given expected success of Scorpio-N, strong order backlogs for XUV700, Thar and ramp in production, see upside risk to FY24E volume assumption,” the brokerage said.
