Mahindra and Mahindra shares fell 3 percent intraday and 4.7 percent from day's high on Monday after November tractor sales missed estimates and the company acquired Carnation brand.
The company said it has sold 25,949 units of tractors in November, higher by 13 percent compared to 22,994 units sold in same month last year.
But it was lower than Nomura's expectations of 27,000 units.
Domestic tractor sales increased 18 percent year-on-year to 25,159 units, but exports dropped 54 percent to 790 units in the month of November YoY.
On the automotive business front, M&M said total sales of 45,101 units increased by 17 percent against 38,570 units sold in November 2017, driven by commercial vehicle segment.
Domestic sales were higher by 15 percent at 41,564 units and exports jumped 40 percent to 3,537 units compared to corresponding month previous year.
Commercial vehicle sales increased 26 percent to 19,673 units, but passenger vehicle sales were up 1 percent at 16,188 units compared to same month last year.
Meanwhile, Mahindra First Choice Services (MFC Services) said it had entered into an asset acquisition agreement with the official liquidator of Carnation Auto (India) Private Limited.
As a result, MFC Services, the subsidiary of Mahindra Group, will acquire key assets of Carnation's car-servicing business including the trademark 'Carnation', its website, software licenses and Carnation's workshop network.
"With this acquisition, we will add significantly to MFC Services existing network of 330 workshops. This will enhance presence across India and help us offer our customers a more comprehensive and attractive service solution," YVS Vijay Kumar, CEO, and Mahindra First Choice Services said.
M&M said this asset acquisition does not include the liabilities and past dues of Carnation Auto which is currently under liquidation.
At 12:12 hours IST, the stock was quoting at Rs 765.15, down Rs 25.05, or 3.17 percent on the BSE.
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Source: Moneycontrol
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