Mahindra & Mahindra's Record Booking Of New EV Models Fails To Vroom Stock Out Of Red Zone

Automaker Mahindra & Mahindra’s stock closed in the red for the sixth straight session, losing nearly 12 per cent to close at Rs 2,816.75 apiece on the NSE on February 17. The stock has corrected 15 per cent from its all-time high level of Rs 3,276.3 which it touched on February 10.

The company witnessed record-high bookings for its electric SUVs XEV 9e and BE 6 on the first day of booking. Mahindra & Mahindra informed the exchanges on February 14 that its SUVs XEV 9e and BE 6 have collectively registered a booking value of Rs 8,472 crore (based on the ex-showroom price) on the first day of the booking window being open. Cumulatively the two cars have secured 30,179 bookings.

Notably the total electric passenger vehicle sales in India stood at nearly 1 lakh units for the calendar year 2024. While the record high bookings indicate strong demand for the company’s EV offerings, shares of the company fell over 5 per cent to hit an intraday low of Rs 2,792.25 apiece on the NSE. The stock later closed at Rs 2,816.75 apiece, down by 4.28 per cent.

Earlier on February 13, the company informed the exchanges that the board of its subsidiary Mahindra Lifespaces Developers Ltd (MLDL) approved a fund raise of up to Rs 1,500 crore through a rights issue. Eligible shareholders of the company can participate in the rights issue. MLDL is the real estate and infrastructure development arm of the Mahindra Group. Notably, Mahindra & Mahindra holds 51.15 per cent stake in MLDL.

Earlier on February 7,  Mahindra & Mahindra posted its financial results for the December quarter of FY25. The company’s consolidated revenue from operations increased by more than 17.73 per cent to Rs 41,464.98 crore from Rs 35,218.32 crore in the corresponding quarter of the preceding fiscal. In the third quarter of FY25, the company’s consolidated profit-after-tax grew by over 21 per cent to Rs 3,624.48 crore compared to Rs 2,977.04 crore.

Shares of Mahindra & Mahindra have gained over 58 per cent in a year. However, the stock has fallen 5.82 per cent Year-To-Date (YTD) and in a month the company’s shares have fallen 4.65 per cent.