Shares of Mahindra and Mahindra
dropped ~2% in early morning trade before recovering to trade flat on the BSE. Shares fell to a low of Rs628.50 on the BSE, a drop of Rs10.5 as against its opening of Rs632.20.
Brokerage and research firm JPMorgan downgraded the stock to ‘Neutral’ from ‘Overweight’. The research house also cut its target price from Rs900 to Rs700, implying a potential upside of 10.7% from the last regular trade.
JP Morgan downgraded the stock due to moderating growth trends and the lack of catalysts. The international brokerage house also said that valuations are cheap but unlikely to improve so. JP Morgan said that concerns such as demand slowdown and margin pressure are also responsible for the stock being downgraded.
Mahindra & Mahindra Ltd is currently trading at Rs631 down by Rs1.2 or 0.19% from its previous closing of Rs632.20 on the BSE.
The scrip opened at Rs639 and has touched a high and low of Rs639 and Rs628.50 respectively. So far 13,36,286 (NSE+BSE) shares were traded on the counter.