The Mahindra & Mahindra share price is under pressure in today’s session. The stock is down nearly 2.5 per cent in an otherwise surging market. This is primarily on the back of price hike announcement. The popular passenger car maker and manufacturers of CVs and tractors has announced a 3% hike in prices of PVs and CVs starting April 1. There is also buzz about M&M buying promoter stake in SML Isuzu.
Price hike on higher input cost
The extent of the price hike will depend on the different SUV models and commercial vehicles, as per the M&M statement. The 3% hike is primarily on the back of rising commodity prices and higher input cost. However, the price hike is not limited to just M&M. Several other auto makers including Maruti Suzuki India, Tata Motors, Hyundai Motors and Kia India have announced price hikes.
SML Isuzu stake buy buzz
According to CNBC Awaaz, Mahindra & Mahindra is perhaps in talks to the promoter’s stake in SML Isuzu. CNBC Awaaz quoted sources and said that the M&M board is likely to meet this week to consider the proposal and the move is seen as a step to expand its footprint in trucks and bus segment. According to the report, the stake buy may happen at a significant discount to the current price. Sumitomo Corporation, promoters of SML Isuzu hold nearly 44% stake.
What’s the expert take on M&M now
Speaking on the weakness in M&M share price today, Asutosh Mishra, Head – Institutional Equities Research, Ashika Stock Broking said, “Mahindra & Mahindra (M&M) witnessed a 2.5% decline in its stock price during today’s trading session, as some media reports indicating the company is in advanced discussions to acquire Sumitomo Corporation’s 43.96% stake in SML Isuzu. While M&M is already a dominant player in the SUV and tractor markets, this deal could enhance its footprint in trucks and buses, an area where it faces stiff competition from Tata Motors and Ashok Leyland.
Following the news, SML Isuzu’s stock surged nearly 6%, reflecting investor optimism about the potential synergies for the company. However, M&M’s stock decline suggests that investors may be cautious about the near-term financial implications of the acquisition, including potential capital allocation concerns or integration challenges.”
According to Mishra, “In addition to the acquisition buzz, M&M recently announced a 3% price hike on its SUVs and commercial vehicles starting April 2025, citing rising input costs. This move could impact near-term demand, which might also be weighing on investor sentiment. As the situation unfolds, M&M’s long-term strategy in commercial vehicles and how investors perceive the acquisition’s value creation will be key factors to monitor.”
M&M share price movement
Even within the auto pack, M&M is the biggest loser, down 2.5% while there are counters like Samvardhan Motherson, Bosch, MRF and other stocks with strong 2 per cent plus gains. The M&M stock is down over 11% so far in 2025 and most of the losses have been seen over the last 6 months. On a 1-year timeframe the share price of M&M is still up over 47%.
Brokerages bullish on tractor business
Though the M&M share is under pressure, most brokerages have been bullish on the stock. International brokerage house, Citi has identified Maruti Suzuki, Mahindra & Mahindra, and Hyundai as top picks after the strong February sales. According to Citi, M&M’s strong tractor volume added to the positive recommendation. UBS too had put a Buy rating on M&M on the back of string performance of the farm equipment sector. The M&M management has guided for 15% YoY growth for Tractors in Q4 FY25 and expects the growth momentum to continue in FY26.