Mahindra and Mahindra Ltd. share price spiked on 2.69% on Friday to hit an all-time high mark of Rs 3,575, a day after it gained over 8% following sweeping GST reforms brought in by the central government on late Wednesday evening. The GST rate cuts have fueled optimism for robust sales in the festive season.
Owing to GST overhaul, auto stocks ended higher on Thursday with the Nifty Auto climbing 3.70% to hit an intraday high of 26,729.65. The GST Council approved limiting slabs to 5% and 18%, effective from Sept. 22.
As per the latest overhaul, petrol, LPG and CNG vehicles of less than 1,200 cc and not more than 4,000 mm length and diesel vehicles of up to 1,500 cc and 4,000 mm length would move to the 18% rate from the current 28%
Motorcycles up to 350 cc would be taxed at a lower GST of 18% against 28% at present.
The scrip rose as much as 2.69% to Rs 3,575 apiece. It pared gains to trade 2.31% higher at Rs 3,562 apiece, as of 11:10 a.m. This compares to a 0.5% decline in the NSE Nifty 50 Index.
It has risen 30.81% in the last 12 months. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 66.
Out of 43 analysts tracking the company, 41 maintain a 'buy' rating and two recommend a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 4.1%
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