M&M shares fall after rising 17% in one month; should you opt for partial profit booking?
CLSA is bullish on premiumization in the country and sees consumers' preferences for high-end products increase over the decade.
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11:37 AM IST
Shares of Mahindra and Mahindra (M&M) were seen underperforming in Monday’s session in line with the losses in the Nifty Auto pack.
At around 10:38 am, shares of the company were down by 1.23 per cent to Rs 1,936.9 apiece on the BSE. The losses in the stock may be partially led by the downgrade by the foreign brokerage CLSA, which has reduced its rating on the counter to ‘outperform’ from the previous ‘buy’ call with a higher target of Rs 2,115. Earlier, the brokerage suggested a target of Rs 2,074 for the stock.
The new target price implies a possible upside of nearly 8 per cent from the last traded price.
The brokerage stated that the recent rally has led it to downgrade the stock. Over the past one month, the stock has leapt by a decent 17 per cent. Nevertheless, the brokerage noted that over the longer term, it should flourish owing to greater exposure to premium products.
CLSA is bullish on premiumization in the country and sees consumers' preferences for high-end products increase over the decade.
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