Auto stock in focus after it sells 3.58% stake in CIE Automotive Spain for ₹1,200 Cr

Synopsis: Mahindra & Mahindra Ltd, a diversified Indian automobile giant, sold a 3.58% stake in CIE Automotive Spain via its subsidiary MOICML, earning around €119 million (~Rs. 1,250 crore), spotlighting its strategic investment moves.

This company is one of the most diversified automobile companies in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers is now in the spotlight after selling a stake of 3.58% in another automotive company.

With market capitalization of Rs. 4,55,934 cr, the shares of Mahindra & Mahindra Ltd are currently trading at Rs. 3,673 per share, making a high of Rs. 3,674.40 in today’ s market session, from its previous close of Rs. 3,650.15 per share.

News

Mahindra & Mahindra Ltd has announced that its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) Limited (MOICML) has sold a portion of its shareholding in CIE Automotive S.A., Spain. 

The transaction involved divesting a 3.58% stake in CIE Automotive’s outstanding shares, generating total proceeds of approximately 119 million euros.  (approx Rs. 1,250 crores) 

About Mahindra & Mahindra Ltd

Mahindra & Mahindra Ltd. (M&M) is one of India’s leading multinational conglomerates, headquartered in Mumbai, with operations spanning automotive, farm equipment, financial services, IT, real estate, hospitality, and more. Founded in 1945, the company is best known globally for its SUVs, tractors, and mobility solutions, and is recognized as one of the world’s largest tractor manufacturers by volume. 

The company reported strong year-on-year performance for Q2 FY26, with sales rising from Rs. 37,924 crore to Rs. 46,106 crore an increase of about 22%. EBITDA grew from Rs. 7,133 crore to Rs. 8,929 crore, marking a robust 25% rise, while net profit increased from Rs. 3,361 crore to Rs. 3,964 crore, up roughly 18%. Earnings per share (EPS) improved from Rs. 25.50 to Rs. 29.54.

The company showcases strong financial efficiency with a ROCE of 13.9% and a ROE of 18%, indicating effective use of capital and shareholder funds. The stock trades at a P/E of 32.1, slightly below the industry P/E of 34.4.

It has delivered an impressive 27% profit CAGR over the last three years, reflecting robust growth momentum. Additionally, it maintains a healthy dividend payout ratio of 20.1%, highlighting consistent returns to shareholders.

Written by Manideep Appana

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