Mahindra & Mahindra hits 52-week low

Shares of Mahindra & Mahindra have touched a 52-week low of Rs 1,095, extended its nearly 9% fall in past one week on the BSE, after the company reported a single digit 1.29% year-on-year increase in total sales of 35,634 vehicles in August. It sold 35,180 units in the same month last year.

The company has reported a 22.03% decline in its tractor sales at 11,699 units in August as against 15,006 units in the same month last year.

The stock underperformed the market by falling 21% in past one-month from Rs 1,388 post June quarter results. The S&P BSE Sensex declined 11.3% during the month.

Meanwhile, analyst at Prabhudas Lilladher recommends ‘accumulate’ rating on the stock.

M&M’s Q1 results were better than expected as cost control, product mix improvement and benign input cost environment benefited the company. In the event of a decent Kharif crop, YoY growth is likely to resume from Nov 2015 in the tractor segment. New UV launches are highly anticipated and should help trigger an improvement in the automotive division performance, analyst said in a report dated August 8, 2015.

At 10.05, the stock was up 1% at Rs 1,122, recovering 2.5% from its 52-week low on the BSE. A combined 179, 985 shares changed hands on the counter on the NSE and BSE.

Mahindra India