Shares of Mahindra and Mahindra (M&M) gained after two days of fall in the current session as the auto major was in advanced talks with global investors to raise $1-1.3 billion by selling shares in its electric vehicles (EV) unit. The move is aimed at putting the expansion plans of its newly formed subsidiary, EV Co on fast-tracks, said a media report.
M&M shares rose up to 1.71 per cent to Rs 1180.30 in early trade today against the previous close of Rs 1160.15 on BSE. The stock of M&M has slipped 6.13% this year and gained 49.47% in the last one year. Total 9814 shares of the firm changed hands amounting to a turnover of Rs 1.15 crore on BSE today.
Market cap of the firm stood at Rs 1.45 lakh crore in early trade today.
In terms of technicals, the relative strength index (RSI) of M&M stock stands at 27.2, signaling it’s trading in the oversold zone. The stock has a beta of 1.0, indicating average volatility in a year. M&M stock is trading higher than the 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
CLSA assigned a buy call to the stock post a meeting with management with a target price of Rs 1619 (a 39.5% upside to the previous close). Supply chain bottlenecks easing & planning multiple EV launches by the auto major are positive for the company. The company is focused on supply chain management for EVs with mass market electric SUVs may be in the offing. Currently, electric tractors are only for niche applications, the international brokerage said.
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