Mahindra and Mahindra stock hits all-time high after latest Scorpio-N

Shares of Mahindra and Mahindra M&M hit a new all-time high on Tuesday after the homegrown car manufacturer launched the latest edition of its popular SUV 'Scorpio-N. The automaker claims that the new SUV is the biggest, most powerful and most advanced version of all Scorpio models to date.

M&M stock went to a record high of 1,114. The previous close of Rs 1082.05 was held by the BSE, rising by 3.47 per cent. The large cap stock has gained 11.67 per cent in four days. Shares of M&M are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. M&M stock has risen by 40.42 per cent in a year and 33.08 per cent in 2022.

The firm's shares changed hands in total of 0.58 lakh, and the firm had a turnover of 6.44 crore on the BSE. The firm's market cap was increased to 1,39, 007 crore.

One can book the new Scorpio-N from July 30, 2022, at Mahindra's website and dealerships as well. The price for the new SUV starts at Rs 11.99 lakh for the entry trim and goes up to Rs 19.49 lakh ex-showroom for the top-end variant. 99 lakhs are in India.

The stock's prospects are bullish after the launch of Scorpio-N.

CLSA has given a target of 1,356 on the stock with a buy call. The previous close of Rs 1082.05 on the BSE is now 25.31 per cent higher than the previous close of 25.31 per cent.

Scorpio-N will boost M&M's SUV line-up. CLSA said that advanced features at lower price points are a great value proposition for customers. It sees room for more improvement in the volumes if chip supply is smoother.

Morgan Stanley is overweight on the stock with a target price of 1,198.

On the Scorpio-N launch, Morgan Stanley said that multiple new launches in the SUV segment underscore the SUV focus of OEMs, as they also point towards easing supply chain issues. It believes that personal vehicles will lead to recovery in autos.

Nomura has given a buy call with a target of 1,308.

The international brokerage said that the new Scorpio-N should support M&M's image into that of a lifestyle SUV maker, which is expected to pay rich dividends in the future.

UBS has given a buy call with a target price of 1,250.

With the Scorpio-N, ride quality, handling, design, and features have been significantly improved. The brokerage said upside risk to the FY 24 E volume assumption is due to the expected success of Scorpio-N, strong order backlogs for XUV 700, Thar and ramp in production.