The Mahindra & Mahindra share price is under pressure in today’s session. The stock is down nearly 2.5 per cent in an otherwise surging market. This is primarily on the back of price hike announcement. The popular passenger car maker and manufacturers of CVs and tractors has announced a 3% hike in prices of PVs and CVs starting April 1. There is also buzz about M&M buying promoter stake in SML Isuzu.
Price hike on higher input cost
The extent of the price hike will depend on the different SUV models and commercial vehicles, as per the M&M statement. The 3% hike is primarily on the back of rising commodity prices and higher input cost. However, the price hike is not limited to just M&M. Several other auto makers including Maruti Suzuki India, Tata Motors, Hyundai Motors and Kia India have announced price hikes.
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According to CNBC Awaaz, Mahindra & Mahindra is perhaps in talks to the promoter’s stake in SML Isuzu. CNBC Awaaz quoted sources and said that the M&M board is likely to meet this week to consider the proposal and the move is seen as a step to expand its footprint in trucks and bus segment. According to the report, the stake buy may happen at a significant discount to the current price. Sumitomo Corporation, promoters of SML Isuzu hold nearly 44% stake.
M&M share price movement
Even within the auto pack, M&M is the biggest loser, down 2.5% while there are counters like Samvardhan Motherson, Bosch, MRF and other stocks with strong 2 per cent plus gains. The M&M stock is down over 11% so far in 2025 and most of the losses have been seen over the last 6 months. On a 1-year timeframe the share price of M&M is still up over 47%.
Brokerages bullish on tractor business
Though the M&M share is under pressure, most brokerages have been bullish on the stock. International brokerage house, Citi has identified Maruti Suzuki, Mahindra & Mahindra, and Hyundai as top picks after the strong February sales.
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