M&M Shares Down 5%; Receives 30,000 Bookings for New EVs, Brokerages Remain Bullish

Despite seeing thumping response for its new electric SUVs, the XEV 9e and BE 6, shares of M&M Ltd fell by about 5% on February 17.

As of 9:30 am, shares of M&M were trading at ₹2,797.45 on the NSE, down 4.9% compared to previous day’s close. The stock was also the top loser on the Nifty 50.

Mahindra & Mahindra’s newly launched electric sport vehicles received 30,179 bookings, which totals to ₹8,472 crore (ex-showroom price).

Several brokerages including Citi Research and Nomura Holdings have reiterated their bullish stance on the stock.

Citi said that deliveries will kick off in late March in a phased manner. M&M orderbook stands at around 6 months as the automaker’s capacity is at 5,000 units per month. It highlighted that the ramping up of its EV facility and cancellation rate for the cars will be watched closely.

The number of bookings marks an impressive start for BEVs (battery electric vehicles). Close to 73% of the bookings have come for the top-end 79 kwh Pack Three. However, the price at which these EVs are sold are very high as India's EV market is in a nascent stage.

Maintaining their buy call on the stock, Nomura set a target price of ₹3,681 per share, while Citi Research pegged the share price at ₹3,680.