![M&M shares fall over 8% after SUV price cut](https://img.etimg.com/thumb/msid-111647686,width-210,height-158,imgsize-32762,resizemode-75/mm-shares-fall-over-8-after-suv-price-cut.jpg)
The stock, which closed 6.7% lower at ₹2,729.9 Wednesday, was the top loser in the benchmark Nifty.
M&M reduced the prices of the variants of their XUV700 SUV by around 10% for a period of four months.
"We saw some profit booking in M&M on account of news flow," said Aamar Deo Singh, senior vice president of research at Angel One. "However, slashing of prices has been seen across the board in car companies due to a pile-up of inventories."
![M&M Shares Fall Over 8% After SUV Price Cut M&M Shares Fall Over 8% After SUV Price Cut](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
Singh said investors must buy M&M shares with a long-term horizon or spread the purchases.
The stock has returned 60.27% in 2024 so far, as against the 11.88% gains in the Nifty.
Kotak Securities remains positive on the stock with a target of ₹2,950 and an 'Add' rating, implying an 8% upside from Wednesday's closing levels.
"We do not see any major revenue impact on Mahindra & Mahindra due to the price cut on XUV 700," said Arun Agarwal, vice president of research at Kotak Securities. "The company has a decent order book and their SUV vertical is expected to continue its growth trajectory."
In an exchange filing the company said, "The announced price cut of XUV700 is a continuation of our business strategy execution that was articulated in our 14th February 2024 analyst meeting where we clearly outlined that we have to bring the average price point down to drive growth."
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Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
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