Shares of Mahindra and Mahindra Ltd. fell over 6% on Wednesday after the company slashed the price of its best-selling sports utility vehicle.
The company on Tuesday slashed the price of the AX7 variant of the XUV700 to Rs 19.49 lakh from its earlier price of Rs 21.4 lakh. This "celebratory pricing," valid for four months, celebrates the XUV 700's forthcoming third anniversary in the market, the company said.
“For Mahindra, this is a case of demand-supply mismatch,” Vinkesh Gulati, chairman (research and academy) at the Federation of Automobile Dealers Association, told NDTV Profit. “The XUV7OO AX5 (a mid-spec variant) is in short supply, but the top-end AX7 variant remains unsold.”
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Shares of the company fell over 6% to Rs 2,930 apiece. It was trading 4.01% lower at Rs 2,930 apiece as of 9:46 a.m., compared to 0.24% decline in the NSE Nifty 50.
The stock gained 81.01% in last 12 months and 60.6% on year-to-date basis. The total traded volume so far in the day stood at 4.6 times its 30-day average. The relative strength index was at 49.27.
Out of 39 analysts tracking the company, 34 recommend a 'buy', four maintain a 'hold' and one suggests a 'sell' according to Bloomberg data. The average 12-month consensus price target implies a upside of 8.3%
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