The company had declared a final dividend of 55 per cent for the year ended March 31, 2003.
On The Stock Exchange, Mumbai (BSE), the stock of M&M closed at Rs 135.50, 5.5 per cent lower than its previous close of Rs 143.45. A total number of 3,04,067 shares of M&M were traded on Thursday.
Dealers, however, consider this a minor setback as M&M has been in the limelight for quite some time on hopes of good future prospects as well as on expectations that the tractor sector will look up if the monsoon turns out to be normal.
Dealers further said that M&M has also been boosted lately on the back of reports that the company is set to make inroads into a number of international markets with its new generation vehicle, Scorpio.
Analysts are upbeat on M&M and expect the company to come out with good performances in FY 2003-04, especially in the utility vehicles segment (due to the focus on exports).
However, the tractors segment could continue to remain subdued, analysts said, as this segment
continues to face problems due to sluggish industry sales.