2 weeks Ago
Shares of Mahindra & Mahindra Ltd. (M&M) are the worst performers on the Nifty 50 index on Friday, February 21, having declined as much as 6.5%.
Share Market View All Nifty Gainers View All Company Value Change %Change With Friday's fall, the stock has declined in nine out of the last 10 trading sessions. M&M's shares have declined nearly 10% so far this week, having already declined 8% last week. The stock is now also trading below its 200-Day Moving Average (DMA), which is currently placed at ₹2,871.
With this, the stock now trades below all of its key moving averages. Post the fall on Friday, M&M's Relative Strength Index (RSI) is heading towards oversold territories, currently placed at 32. An RSI reading below 30 means that the stock is oversold.
CNBC-TV18 had reported earlier this week that Tesla CEO Elon Musk is considering starting retail operations in India by April this year. The company is planning to launch an Electric Vehicle under $25,000, according to sources. Jay Kale of Elara, in an interaction with CNBC-TV18, said that Tesla's prices may be meaningfully higher than Maruti and Mahindra & Mahindra but that is one aspect that needs to be looked into.
M&M's board on Thursday also approved subscribing to equity shares of Mahindra & Mahindra Financial Services and Mahindra Life Space Developers through their respective rights issue. M&M Finance plans to raise a sum not exceeding ₹3,000 crore, while for Mahindra Life, the company plans to raise not more than ₹1,500 crore through the rights issue process. Despite this fall, 37 out of the 40 analysts that have coverage on Mahindra & Mahindra have a "buy" rating on the stock.
Consensus estimates imply a potential upside of 35.5% for the stock from current levels. Shares of M&M are trading 5.
6% lower at ₹2,679. The stock is down 18% from its recent peak of ₹3,270 and all of that fall has come in the last two weeks as the stock was at a 52-week high on February 10..
