M&M share price hits fresh high after Mahindra Scorpio-N SUV clocks 1lakh bookings within 30 minutes; brokerage sees 24% upside

Shares of Mahindra and Mahindra (M&M) rose nearly seven per cent to trade on fresh 52-week high value in Monday's intraday trade. The shares touched fresh high of Rs 1244.95 on strong demand for its latest SUV—Scorpio-N SUV, which clocked one lakh booking within 30 minutes.  

"Over 25,000 bookings were clocked within one minute of bookings commencement at 11 am on July 30, 2022. Over 1,00,000 bookings registered in under 30 minutes, translating into an ex-showroom value of around Rs 18,000 crores," said Mahindra and Mahindra on Saturday.  

Meanwhile, reacting to strong bookings, domestic brokerage house Axis Bank said back-to-back successful SUV launches in highly competitive segments should allay investor concerns on sustainability of company’s SUV franchise.  

M&M continues to undergo significant makeover as witnessed from its sharper focus on large SUVs, efforts to scale up presence in EVs and larger ambitions in agri implements, it said.  

"Its capital allocation policy has come a long way from investing in unrelated segments and loss-making overseas auto businesses to monetization and exit from non-core businesses and getting external funding for EVs," it said.  

The brokerage reiterated a buy call on Mahindra and Mahindra (M&M) with a target price of Rs Rs 1,450. This is an upside of 24% on Friday's closing price of Rs 1165 per share.  

Scorpio-N SUV Delivery Date 

Earlier, the home-grown auto manufacturer said deliveries of the All-New Scorpio-N will begin September 26, 2022, onwards.  

"Over 20,000 units of the All-New Scorpio-N are planned for delivery by December 2022 wherein Z8L variant will be prioritized. Mahindra will inform the customers about their delivery date by the end of August 2022," it said 

Mahindra Scorpio-N Introductory Prices 

As per the M&M, the introductory prices of the All-New Scorpio-N variants are applicable for the first 25,000 bookings. "The prices for the subsequent bookings will be as per the prices prevalent at the time of delivery. Bookings for the All-New Scorpio-N will continue to be accepted online and at dealerships," it added.