Reuters logo
MARKET EYE-M&M falls further on Navistar stake buy
December 21, 2012 / 10:03 AM / 5 years ago

MARKET EYE-M&M falls further on Navistar stake buy

* Mahindra & Mahindra shares fall for the second day
on earnings concerns, after the automaker said it would buy
Navistar International's 49 percent stake in its two
joint ventures, in a $33 million deal. 
* Mahindra automotive president Pawan Goenka told analysts on
Thursday that the M&M board has given executives three years to
bring the two companies, which build trucks and engines, to
* The two companies had cumulative losses of 6.92 billion rupees
as of March 31 this year, Goenka said.
* After the management call, Citi estimated no impact on
Mahindra & Mahindra's stand alone earnings but warned
consolidated profits will be affected adversely as 100 percent
of the losses of both entities will now reflect.  
* Barclays suggests M&M's "immediate task" is to reduce the cash
losses and focus on turning around operations as recent trends
for medium and heavy duty commercial vehicles point to
increasing stress in the industry. 


0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below