After receiving 100,000 reservations for the brand-new Scorpio-N within the first 30 minutes of taking reservations on Saturday, Mahindra & Mahindra Ltd. (M&M) stock reached a record high on Monday.
The stock peaked at Rs 1,235 per share after trading as low as Rs 1,195. At 9.45 am, the scrip was up 6% from its previous close and was trading at Rs 1,234 on the BSE. The stock increased in price for the fifth session in a row. It has increased by more than 45% so far this year.
On an ex-showroom price basis, the rush has resulted in a book value of Rs 18,000 crore. The company claimed that demand for the SUV was so great that it received 25,000 reservations in the first minute.
Many potential customers were unable to reserve their Scorpio-N because of a problem with the website, which Anand Mahindra acknowledged on Twitter: “From our press release. And I add my reassurance: There was a brief glitch with the payment gateway provider. We assure all customers that their time stamp prior to payment is duly recorded, so each customer will have their rightful place in the order sequence.”
From our press release. And I add my reassurance: There was a brief glitch with the payment gateway provider. We assure all customers that their time stamp prior to payment is duly recorded, so each customer will have their rightful place in the order sequence… https://t.co/Vvd7Doa1pY
— anand mahindra (@anandmahindra) July 30, 2022
On August 15 in the UK, M&M will reveal their born-electric SUV platform and offer a schedule for new model introductions (four models by FY26). The M&M XUV400 (electric) with ICE conversion will also be unveiled in September 2022, and deliveries are anticipated to start in January to March 2023. By FY27, M&M anticipates that 20–30% of its total SUV portfolio will be electric SUVs (200,000 annual EV volume at the upper end).
“We note that M&M is a leader in EV 3Ws (ex e-rick), with a 38 percent share in the first quarter of FY23 (per Vahan). We believe electrification in last-mile mobility (3Ws, LCVs) could drive additional value creation for M&M in the future,” JP Morgan said in a note.
“As of July 1, M&M had 143K+ open bookings (once opposed to 170K+ at the end of May), and we anticipate that figure to continue high as Scorpio-N bookings begin on July 30. The Thar is second with 26K open reservations, followed by the XUV700 with 80K ” the report added.
On August 5, the company will release its June quarter earnings. It may record revenue of Rs 19,923.50 crore and a net profit of Rs 1,534.10 crore, according to forecasts from 14 Bloomberg analysts.