5 Minutes Read

M&M Block Deal: Promoter likely to sell 93 lakh shares

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

The floor price for the deal is expected to be ₹1,911.50-1,970.65, sources said. This is at a discount of 0-3% to Wednesday’s closing price for the stock. Shares of Mahindra & Mahindra ended 1.69% higher at ₹1,972.

Promoter group entity Prudential Management and Services Private Ltd is likely to sell 93 lakh shares of Mahindra & Mahindra (M&M) via a block deal, sources with knowledge of the matter told CNBC-TV18. The floor price for the deal is expected to be ₹1,911.5-1,970.65, sources said. This is at a discount of 0-3% to Wednesday’s closing price for the stock. The deal size is likely to be $17,777 million. 

Post this transaction, the promoter will have a lock-up for 90 days before the next sale.

Based on the latest data, M&M’s promoter group holds a 19.32% stake in the company of which Prudential Management and Services Private owns 11.64%. Kotak Mahindra Capital is the advisor for the deal.

Shares of Mahindra & Mahindra ended 1.69% higher on Wednesday at ₹1,972. The stock has jumped more than 52% in the last 12 months.

Also Read: Samvardhana Motherson Block Deal: Promoter sells 4.4% stake, confirms CNBC-TV18 newsbreak

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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CNBC-TV18 Newsbreak Confirmed: Temasek to invest Rs 1,200 crore in M&M’s EV business

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

The investment will value M&M’s electric vehicles division at Rs 80,580 crore.

Mahindra Electric Automobile Ltd., the Electric Vehicles division of Mahindra & Mahindra has announced that Jongsong Investments Pte. Ltd., a unit of Temasek, will be investing Rs 1,200 crore in the unit.

The investment will value M&M’s electric vehicles division at Rs 80,580 crore.

This announcement also confirms a CNBC-TV18 newsbreak from August 1, where it was reported that the EV business of Mahindra & Mahindra is likely to get another round of fund infusion, and that the exercise is likely to be completed in the next two weeks.

The Rs 80,580 crore valuation at the current fund infusion is the highest valuation for any EV company in India. In US Dollar terms, M&M’s EV business is now valued at $9.8 billion, which is 15 percent higher than when British International Investment had invested last year at a $9.1 billion valuation.

In July 2022, M&M, along with British International Investment signed a binding agreement to invest as much as $250 million each into Mahindra’s EV subsidiary.

Temasek will be subscribing to the Compulsorily Convertible Preference Shares of MEAL in one or more tranches. Post the fund infusion, Temasek’s shareholding will be between 1.49 percent to 2.97 percent of MEAL’s paid-up share capital, on a fully diluted basis.

On subscribing to the CCPS, Temasek will get governance and affirmative voting rights, pre-emptive rights to participate in future fund raising rounds and minority protection rights.

“Temasek’s investment is a step forward, as we execute our strategy towards future leadership in electric SUVs,” M&M’s MD & CEO Anish Shah said.

In earlier interactions, the management of M&M has mentioned that they are open to raising funds for the electric SUV business. The company estimated an investment requirement of as much as Rs 10,000 crore for the EV business over the next two-to-three years.

Rajesh Jejurikar, ED & CEO of M&M’s Auto and Farm divisions said that by having Temasek as an investor, the company has strengthened its global strategic partnerships and is targeting 20-30 percent of its overall SUV sales via EVs by 2027.

Shares of Mahindra & Mahindra are trading 1 percent lower at Rs 1,470. The stock fell off the day’s high post the announcement. The company will be reporting its June quarter results on Friday, August 4.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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M&M acquires 3.53% stake in RBL bank, stock tumbles 6% – biggest Nifty loser today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Mahindra and Mahindra may consider further investment in RBL bank, but not exceeding 9.9 percent.

Mahindra and Mahindra (M&M) loses 6 percent in trade on July 27 morning after it announced that it acquired a 3.53 percent stake in RBL Bank as an investment at a cost of Rs 417 crores.

The company said in a press release to the stock exchanges, “We may consider further investment subject to pricing, regulatory approvals and required procedures. However, in no circumstance will it exceed 9.9 percent.”

This is a non core investment for the auto giant. The Street is disappointed as there are concerns being raised on its capital allocation policy.

M&M had earlier addressed their capital allocation policy in detail, wherein the company had a target to achieve 18 percent return on equity overall for all businesses. In line with this, M&M has grouped each of its businesses into ‘A’, ‘B’, ‘C’ categories and exited businesses which could not deliver 18 percent return on equity. With the recent announcement of buying stake in RBL bank, the Street will question the capital allocation policy.

M&M shall hold a Board meeting on August 4 to consider and approve its first quarter results. The stock has given up all its gains for this week and is trading at Rs 1,446 per share. The shares gained 14 percent since the start of this calendar year.

On the contrary, RBL bank shares are trading nearly 3 percent higher on July 27 morning.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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India’s largest tractor manufacturer looks to lightweight tractors for heavy market share gains

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

For financial year 2023, Mahindra & Mahindra’s exports grew by 15 percent to 4,07,545 units.

Mahindra & Mahindra Ltd. (M&M), India’s largest tractor manufacturer in terms of market share and market value is aiming to increase its presence in the lightweight tractor market, not only in India, but also globally.

The size of the lightweight tractor market in India is not that big but not small either, said Rajesh Jejurikar, the Executive Director and CEO of M&M’s Auto and Farm businesses. India’s tractor industry sold a record 9.44 lakh units in financial year 2023, of which the lightweight category is around 50,000 – 60,000 tractors. M&M’s market share in this segment is lower than its overall tractor industry market share of 41 percent.

“So, there is an upside for us to gain share,” Jejurikar said.

In order to boost its prospects, Mahindra & Mahindra along with its Swaraj brand of tractors will come out with a lightweight series. For M&M, that series will be called “Oja” and will have a global launch this independence day, August 15.

Also Read: M&M enters top 25 in the world as profit crosses Rs 10,000 crore in FY23

“Global launch because it would also help us gain volumes and market share in several other global markets,” Jejurikar said, highlighting North America as a potential opportunity within this segment. The small tractor segment, particularly the one with less than 50 Horse Power, is the largest segment within the overall market in the US.

On the other hand the Swaraj lightweight tractor series will be launched on Friday, June 2. “And again, Swaraj has a very little presence there and we would see Swaraj gaining market share,” M&M’s farm equipment division CEO said.

Oja will first be launched in India and then across different parts of the world towards the end of the calendar year.

Also Read: Mahindra & Mahindra shares gain after World Bank arm invests in EV subsidiary

A bigger opportunity that Jejurikar sees is that in South-East Asia or ASEAN countries. “We don’t play in ASEAN at all today. And that is a lightweight tractor driven market and there is a very good upside for us to export and build business in ASEAN as well, and many other parts of the world,” he said.

The increasing unavailability of farm labourers, growing mechanisation of agriculture and demand for various tractors with different horsepowers is boosting the sales of tractors in ASEAN countries. Agricultural tractors are widely used in countries like Vietnam. Import value of these tractors in 2021 stood at $517 million, according to Mordor Intelligence.

Farmers in such areas prefer small and customized tractors for agricultural purposes due to small farmland sizes. For financial year 2023, Mahindra & Mahindra’s exports grew by 15 percent to 4,07,545 units. For financial year 2024, Jejurikar expects the overall tractor industry to grow in low-single-digits on the back of a high base. Sentiment, rains, and government spending in rural areas are some of the factors that he highlighted for driving demand this year.

“Right now as it’s just the beginning of the year we are being a little cautious and pessimistic maybe about the growth at around what we are saying low single digits. But we do expect to gain market share and we would expect our growth be higher,” Jejurikar said.

Also Read: Mahindra & Mahindra shares may gain up to 24% post in-line Q4 show. Should you buy, sell or hold?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Editors’ Roundtable | Here’s how Indian equity markets performed in FY23

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

FY23 was a quiet year for the Indian equity markets. However it was a stock picker’s market as some stocks moved by 20-50 percent.

FY23 was a quiet year for the Indian equity markets. However, it was a stock picker’s market as some stocks moved by 20-50 percent.

In FY23 the Indian markets were faced with many challenges; First, was interest rate hikes globally. Second, high valuations in Indian equity markets and third, the China reopening trade which took away some part of fund flows. Also foreign institutional investors (FIIs) sold the Indian equities for majority of the fiscal and towards the end of the year the US banking crisis put the markets in bit of a tizzy.

Compared to global indices the Nifty was down only 0.6 percent but the pain was in the small cap index which was down by 14 percent. However Nifty bank and the midcap index ended with gains of 11 and 1.4 percent respectively.

On a stock specific basis in Nifty 50, ITC gained by 53 percent, M&M gained 43 percent, while Britannia, NTPC and HUL gained between 35 and 24 percent.

On the losing side, Wipro was down by 39 percent, Divi’s Lab was down 36 percent, while Hindalco, Tech Mahindra, Bajaj Finserv, Infosys, Tata Steel and Adani Ports were down between 29 and 18 percent.

From the broader markets, Gland Pharma was down 62 percent, Laurus Labs was down 50 percent, Trident and Mphasis was down 47 percent, while Vodafone-Idea, Biocon and Godrej Properties were down between 39 and 38 percent.

However there were some big gainers as well. Stocks like Indian Bank, TVS Motors, Union Bank and Apollo Tyres gained between 89 and 68 percent.

Some of the money doubling stocks included Apar Industries which gained by 280 percent, Mazgaon Dock gained by 180 percent and BLS International gained by 171 percent.

Also Read: SEBI tells top 100 listed firms to clarify market rumours from October 1

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Mahindra CIE sees 6.5% equity worth nearly Rs 900 crore change hands in a block deal – shares drop

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Shares exchanged hands at an average price of Rs 365 per share, which is a 7.4 percent discount to the stock’s closing price on Friday.

Shares of Mahindra CIE declined as much as 6 percent on Monday after 2.45 crore shares or 6.5 percent of the company’s total equity exchanged hands in a large deal.

The deal size is said to be worth Rs 892.6 crore. Shares exchanged hands at an average price of Rs 365 per share, which is a 7.4 percent discount to the stock’s closing price on Friday.

Buyers and sellers in the transaction are not immediately known.

CNBC-TV18 had reported over the weekend that auto major Mahindra & Mahindra (M&M) Ltd is likely to sell a 4.6 percent stake in Mahindra CIE through block deals, citing people with knowledge of the matter.

The floor price for the proposed Rs 615 crore deal was fixed at Rs 355.

Now that the deal is complete, there would be a lock-in period of 60 days for the seller before any further sale takes place.

Also Read: Bittu Varghese quits as CFO of Sula Vineyards

Mahindra CIE Automotive is a subsidiary of the CIE automotive group of Spain. Mahindra & Mahindra holds a 9.25 percent stake in the company as of December 2022.

Mahindra CIE Automotive’s net profit for the December quarter tripled year-on-year to Rs 195 crore on strong operational performance and exceptional gain.

The company recorded a gain of Rs 37.87 crore for the quarter, compared to an exceptional loss of Rs 12.8 crore in the same period last year.

Also Read: Infosys ex-President Mohit Joshi appointed new Tech Mahindra MD and CEO; who is he?

While the company’s India business grew 21.7 percent year-on-year to Rs 1,407 crore, its Europe business increased by 43 percent to Rs 1,323.1 crore during the same quarter.

Shares of Mahindra CIE are trading 5.2 percent lower at Rs 372.80.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Mahindra & Mahindra expects strong SUV demand even after record sales in September

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Speaking to CNBC-TV18, Veejay Nakra, President-Automotive Sector at M&M said the demand is very strong across all categories also the booking pipeline is extremely strong across all other products.

[wealthdesk shortname=”M&M” isinid=”INE101A01026″ bseid=”500520″ nseid=”M&M” sector=”Auto – Cars & Jeeps” exchange=”nse”]

Mahindra & Mahindra Ltd. now leads the SUV segment both by volume as well as revenue share, the management told CNBC TV-18 in an interview.

The company’s auto sales were at a record high in September, climbing 129 percent from last year to 64,486 units. With a 19 percent market share, it now leads the SUV market.

Also Read: Auto sales: M&M registers highest ever SUV sales, Bajaj Auto sales decline by 2%

In a conversation with CNBC-TV18, M&M’s automotive business president Veejay Nakra said that the demand is strong across categories and that it is up to their ability to ramp-up and fulfill that demand.

Nakra also said that the booking pipeline is “extremely strong” across other products besides the Thar, the XUV700, and the recently launched Scorpio-N. Record bookings were seen for the recently launched Bolero Max truck and the Scorpio Classic.

For Mahindra & Mahindra, SUVs continues to contribute more than half of the company’s Passenger Vehicle segment.

“From a demand point of view, SUVs will continue to remain strong,” Nakra said. When it comes to supply-side headwinds and the shortage of critical components, Nakra said that some of these issues will have  a greater impact on commercial vehicles and passenger cars to an extent.

Nakra believes that the supply-chain issues are still not resolved and continue to be a challenge for most players within the automotive space. “There is a systemic gap between demand and supply, especially for semiconductors,” he said.

Aside of SUVs, Mahindra’s farm equipment segment also saw its highest-ever domestic monthly sales. The company sold 47,100 tractors in September, a jump of 20.6 percent from the same period last year.

Also Read: M&M likely to raise up to $500 million for EV drive — stock drops amid market sell-off

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Auto sector in cruise control ahead of festive season, suggests report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

“Rural demand is expected to be driven by normal monsoon and government subsidies. We expect two-wheeler volumes to recover, especially in the entry and executive motorcycle segment, which has been sluggish lately and has started showing improvement in the previous months,” said Sharekhan.

The Festive season is going to continue the growth momentum for the auto sector in India, as per a report by brokerage firm Sharekhan. The report states that positive sentiments and exciting new launches will keep growth momentum in the two-wheeler and personal vehicle (two- and four-wheelers) segments.

“Rural demand is expected to be driven by normal monsoon and government subsidies. We expect two-wheeler volumes to recover, especially in the entry and executive motorcycle segment, which has been sluggish lately and has started showing improvement in the previous months,” said Sharekhan.

The report further added that new launches in the personal vehicle and two-wheeler segments are likely to spark consumer excitement in the medium term.

“We expect robust recovery in CV sales, led by increasing economic activity and improving sentiments of fleet owners at a lower cost of ownership under BS-VI vehicles and a low base. Buses and 3Ws are also expected to see recovery,” added the brokerage firm.

ALSO READ: Kotak Equities cautious on auto stocks despite a tailwind for the sector

Medium and Heavy Commercial Vehicles (M&HCVs) sales will remain at healthy levels, driven by improving economic and infrastructure activities. Light commercial vehicles (LCVs) are expected to do well because of the surge in e-commerce and better last-mile connectivity. Buses and three-wheelers (3W) are also expected to see recovery, driven by reopening of schools and offices and easing of mobility restrictions.

Talking about commercial vehicles, Umesh Revankar, VC and MD of Shriram Transport Finance Company said, “Demand from M&HCV is predominantly coming from the infrastructure development because wherever the application is for the infrastructure the demand is very high.”

How are companies expected to perform?

The brokerage firm noted that in the two-wheeler segment, Hero MotoCorp is expected to report sales of 4.8 lakh units in August 2022, an increase of 5.8 percent from the corresponding period a year ago, aided by recovery in rural markets.

While TVS Motors is expected to report wholesale movement of 3.3 lakh units, seeing a growth of 12.4 percent, Bajaj Auto’s monthly sales are expected to be around 3.6 lakh units, down by 2.5 percent from August 2021.

The brokerage firm expects Royal Enfield (RE) to sell 67,000 units in the month.

In the three-wheeler segment, Bajaj Auto and TVS Motor are expected to see strong recovery in August 2022.

Maruti Suzuki’s monthly sales are expected at 1.6 lakh units up by 24.1 percent from the corresponding period a year ago while Tata Motors is expected to deliver 48,000 units, showing a growth of 71.3 percent from August 2021 in the personal vehicle segment.

M&M and Escorts tractor sales are expected to report muted growth on a sequential basis due to seasonality and a high base. While in the commercial vehicle segment Tata Motors, Ashok Leyland, are expected to show a growth in sales in August 2022, by 14.7 percent and 48 percent respectively, and Eicher Motors sales are expected to decline by 14.5 percent from the corresponding period a year ago.

The S&P BSE Auto index traded green in the last trading session surging 762.04 points or 2.5 percent at 30,334.18. TVS Motors closed up at 2.98 percent, Bajaj Auto closed at 1.3 percent up and Hero Moto Corp closed 0.5 percent in the green on the BSE on Tuesday.

In the trading session on Tuesday, Maruti Suzuki closed at Rs 9,051, up 2.45 percentl Tata Motors climbed over 3.8 percent and closed at Rs 471; M&M, Escorts Kubota and Eicher Motors closed at over 2 percent  in the green on the BSE. While Ashok Leyland settled at Rs 154, climbing 3.98 percent.

ALSO READ: Mahindra launches new cargo electric three-wheeler Zor Grand, check features and price

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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CLSA raises target price on M&M, here’s why

CLSA has sharply raised a target price on Mahindra & Mahindra to Rs 1,220 versus their earlier target price of Rs 1,090.

CLSA believes that the sharp turnaround in consolidated earnings and RoE has driven this re-rating on M&M. They are estimating consolidated RoE to rise from 9 percent from FY21 to up to 16 percent by FY23.

In terms of core businesses, they expect a strong earnings growth both for farms and autos with a consolidated CAGR of 20 percent over the next two years.

Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.

 5 Minutes Read

Festive auto sales: No respite as semiconductor shortage issue refuses to go away

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

CNBC-TV18 has learnt from sources that passenger vehicle retails were down 33 percent this festive season, two-wheeler retails were down 15 percent over the last 30-34 days and approximately 3 lakh cars were sold compared to 4.5 lakh cars in the last festive season. The industry just did not have enough stock to meet the demand this festive season owing to semiconductor shortage.

CNBC-TV18 has learnt from sources that passenger vehicle retails were down 33 percent this festive season, two-wheeler retails were down 15 percent over the last 30-34 days and approximately 3 lakh cars were sold compared to 4.5 lakh cars in the last festive season.

The four-week long festive season has come to an end. Many car dealers were completely sold out including the vehicles on display, but this is not exactly good news. The industry just did not have enough stock to meet the demand this festive season owing to semiconductor shortage.

Maruti Suzuki, the market leader retailed close to 1.4 lakh cars in the last 34 days. Retail sales for Maruti Suzuki dropped by about 50,000 compared to the last festive period last year (2020).

Also Read: 40% jump in used car sales this festive season, says Mahindra First Choice Wheels

All car dealers had very low inventory and even now would have, possibly, one of the lowest ever dealer stocks. Close to 90,000 to 1,00,000 cars were sold overall across the industry in the last seven days alone (Diwali period).

Maruti Suzuki currently has 2.5 lakh pending bookings, Hyundai has 95,000 pending bookings, Mahindra & Mahindra (M&M) has close to 1.3 lakh pending bookings including Thar and XUV700; all of this because of the continuing chip shortage.

There is an increase in inquiry; 10 percent increase in inquiries. There is an increase in retail compared to 2019 period, also a small growth, but car bookings are now slowing down because vehicles are not available in the market.

Also Read: Current festive season worst in decade: Automobile dealers’ body FADA

It’s also the year-end period and rural sales of two-wheelers are showing a slight uptick according to sources in the industry.

Watch the accompanying video of CNBC-TV18’s Parikshit Luthra for more details.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
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Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?