Shares of Mahindra & Mahindra Ltd. erased most of their opening gains by early noon on Monday after it reported a year-on-year decline in March tractor sales.
The company's total tractor sales fell 26% year-on-year to 26,024 units in March, according to an exchange filing.
The automaker's total exports fell 26% year-on-year to 1,573 units in March. Three-wheeler sales, too, fell 7% to 5,279 units. However, total sales rose 4% to 68,413 due to a 13% increase in passenger vehicles.
However, the company remains optimistic, as the forecast of a normal South-West monsoon this year will boost tractor demand in the coming months.
"The government's announcement of an increased advance estimate of horticulture production and Rabi wheat output higher than last year is expected to bring positive sentiments among farmers," it said.
Shares of the company had risen as much as 2.21% to Rs 1,963.85 apiece during early trade but soon slipped into losses following the release of sales data.
However, at 11:23 a.m., the stock was trading 0.21% higher at Rs 1,926 apiece, compared to a 0.71% gain in the NSE Nifty 50 Index.
The stock has risen 57.3% in the last 12 months. Total traded volume so far in the day stood at 0.41 times its 30-day average. The relative strength index was at 59.49.
Out of 41 analysts tracking the company, 36 maintain a 'buy' rating and five recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 1.9%.
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