Hit by a delayed and deficient monsoon and increased competition, tractor and utility vehicle market leader Mahindra & Mahindra on Friday reported a 4.2 per cent decline in stand-alone net profit for the quarter ended September 30.

The Mumbai-based company posted Rs 947 crore profit for the reporting quarter, below the Bloomberg consensus of Rs 961 crore. The company had reported a profit of Rs 989 crore during the same period last year.

It may have a stranglehold on the sports utility vehicle market, but Mahindra & Mahindra (M&M) has struggled to get even a toehold in the two-wheeler business. Taking the problem by its scruff, it has now negotiated an agreement with France’s Peugeot Motorcycles in which it will spend out euro 13 million (Rs 100 crore) for a 51 per cent controlling equity.

Expectations of poor tractor sales notwithstanding, Mahindra & Mahindra, flagship company of the $16.5 billion Mahindra Group, is set to entice the rich farmers with air-conditioned tractors to be unveiled early 2015.

Farmers slogging out on the fields for hours can enjoy the cool comfort of an air-conditioned cabin to be mounted on M&M's newly launched Arjun Novo platform by paying Rs 2.5 lakh extra, said Ravindra Shahane, vice-president, marketing of farm equipment division.

MUMBAI: Mahindra & Mahindra Ltd, the country's largest utility vehicle maker, said on Tuesday its two-wheeler unit has made a binding offer to acquire a 51 per cent stake in PSA Peugeot Citroen's scooters business.

Mahindra Two Wheelers Ltd (MTWL), an unlisted subsidiary of Mahindra & Mahindra Ltd and part of the $16.5 billion Mahindra Group, has made a binding offer to acquire a 51% stake in Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA Group based in France, M&M said in the filing.

After the launch of its feature-rich 110 cc scooter Gusto, Mahindra Two Wheelers, part of the $ 16 billion Mahindra Group, is planning to launch its 300 cc bike Mojo within the end of this fiscal. This would mark the company’s entry into a niche and premium segment of two-wheelers, and is part of its strategy to gain a strong foothold of the Indian two-wheeler market.

The bike was show-cased during the Auto Expo earlier this year and according to industry sources it was also showcased to dealers in August. Dharmendra Mishra, vice president, sales and customer care, Mahindra Two Wheelers Ltd said that the company was planning to launch the 300 cc bike Mojo within this fiscal.

Top SUV maker Mahindra & Mahindra (M&M) on Monday launched the refurbished version of its top-selling model Scorpio in the Uttar Pradesh market.

The ‘New Generation Scorpio’ is priced between Rs 8.37 lakh and Rs 11.99 lakh across its 7 variants. The UP SUV market is pegged at 12,000 units a month. M&M claimed to have the lion’s share of over 50 per cent in it.

Mahindra & Mahindra (M&M), the market leader in India's tractors and utility vehicles segments, is in advanced talks to buy PSA Peugeot Citroen's scooter business, according to a Bloomberg report.

"An announcement may be made soon," the agency quoted two people as saying. The sources declined to be identified, as the discussions were private.

Mahindra and Mahindra Ltd shares fell 1.7 percent.

Kotak Institutional Equities cuts the auto maker to "reduce" from "add" and lowered target price to 1,310 rupees from 1,404 rupees.

It cited valuations as the key reason. It further added that Mahindra and Mahindra has lost 13 percent market share in the utility vehicle segment over the past two years.

Mahindra & Mahindra (M&M), the utility vehicle manufacturer, is set to launch its new facelifted sports utility vehicle (SUV) Scorpio, which is expected to hit the markets during the upcoming festive season.

According to market sources, M&M will launch its new Scorpio before the start of the festive season even as several other competitors have lined up critical launches during the festival season, considered to be an auspicious time by buyers for making high value purchases.

We maintain a 'buy' rating on Mahindra & Mahindra (M&M) with a target price of Rs 1,450 per share. M&M's automotive segment margins have remained resilient in the weak demand environment and we are forecasting volume revival in FY16. For tractors we expect volume growth to normalize over FY15-16. The core business trades at 12.5x FY16e price-to-earnings (P/E). Our FY15e and FY16e core EPS estimates are Rs 56 and 76, respectively.

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