Mahindra & Mahindra stock hits 52-week high as brokerages bullish on counter post Scorpio-N launch; check target prices

Shares of Mahindra & Mahindra jumped over three per cent in Tuesday's intraday trade after the auto major launched a new generation Scorpio (Scorpio-N) on Monday.

The surge in stock prices also comes after global brokerages took note of the Scorpio-N and believed that it can help the auto major increase its market share. Source: Reuters

Shares of Mahindra & Mahindra jumped over three per cent in Tuesday's intraday trade after the auto major launched a new generation Scorpio (Scorpio-N) on Monday.

The counter surged 3.5% to trade at a 52-week high value of Rs 1121 per share on the BSE on Tuesday, a day after the announcement of the new variant of the SUV. The stock price of the auto giant has nearly doubled in the past three months since it traded on 52-week low of Rs 671 per share on the BSE on March 8.

The surge in stock prices also comes after global brokerages took note of the Scorpio-N. They believe it will help Mahindra & Mahindra gain market share going forward.

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Most aggressive target was given by global brokerage firm CLSA. Banking on the new variant launch of Mahindra Scorpio, the brokerage maintained a buy call with a target price of Rs 1356 per share. It is an upside of 25% on Monday's closing price of Rs 1082.

Nomura retained a buy rating on M&M. Saying the new launch will help the domestic auto major increase its volume by 10-15% in FY 2023-24, It pegged the target price at Rs 1308 per share.

UBS maintained a buy stance on the auto stock with a target price of Rs 1250. JP Morgan and Morgan Stanley retained overweight rating with target prices of Rs 1200 and RS 1198 respectively.

Mahindra & Mahindra on Monday launched its much-awaited SUV, Scorpio-N, at entry price of Rs 11.99 lakh. Scorpio-N diesel was priced at Rs 12.49 lakh. Top-end Mahindra Scorpio-N diesel MT 4x2 Z8 L variant was priced at Rs 19.49 lakh (ex-showroom).

“The All-New Scorpio-N has been designed, engineered and built to be a game-changer. With its unmissable design, sophisticated ride and handling, thrilling performance, advanced technology, reassuring safety and of course, its terrain-conquering abilities, the All-New Scorpio-N takes forward the unbeatable Mahindra legacy of building authentic, desirable and tough yet sophisticated SUVs," Veejay Nakra, President, Automotive Division, M&M Ltd had said during the launch.

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