The scrip slipped 0.58% to Rs 523.60. It has traded in the range of Rs 524.75 and Rs 520.65 so far during the day.
The short-term rating was reaffirmed at A1+. The ratings factors the company’s its dominant market position in the Indian tractor industry and Light commercial vehicles (LCV) segment.
The rating continues to favourably take into account the company’s strong financial risk profile, marked by strong debt coverage indicators and superior liquidity position on back of large un-encumbered liquid investments.
The rating agency said Mahindra & Mahindra’s ability to maintain its strong market position in the automotive business and any deterioration in the financial risk profile on the back of substantial capex requirements towards product development and investment in subsidiaries will be the key monitorables.
M&M operates in automotive segment comprising of sales of automobiles, farm equipment and sale of spare parts.
