Last week, Mahindra & Mahindra Limited (M&M) announced that it would be raising money for its EV business. Even though the company’s EV strategy appears promising, it has not yet succeeded in reversing the stock’s subdued performance.
In February, 1,397 shares of the stock fell 17.6% from its 52-week high. In addition, M&M has experienced more correction thus far this calendar year than the standard Nifty Auto index. The possibility that 2023 will be an El Nio year is a major factor that affects investor sentiment. This phenomenon results in a hot summer and a weak monsoon, primarily affecting M&M’s tractor business and other rural-oriented industries. In the nine months that ended in December, the vertical accounted for approximately 53% of the automaker’s Ebit, or earnings before interest and taxes.