Shares of Mahindra & Mahindra jumped as much as 2.1 per cent to Rs 1,316, the highest since September 13 on new order from EESL. The stock was among the top percentage gainers on the NSE index.

State-run Energy Efficiency Services Ltd (EESL) said it will purchase 150 e-vehicles from Mahindra & Mahindra in phase I of a plan to buy a total of 10,000 electric vehicles.

Mahindra and Mahindra got purchase order after matching the lowest bid price quoted by Tata Motors Ltd, EESL said.

EESL is a joint venture between the Union Government, NTPC LTD, Power Finance Corp Ltd, Rural Electrification Corp and Power Grid Corp of India to promote energy efficiency in India.

Mahindra stock gained up to 9 per cent so far in the year up to Wednesday's close.

EESL said electric cars will replace petrol and diesel cars currently used by the Union Government and its agencies.

CLSA has upgraded the company's stock rating to ‘Buy’ from ‘Outperform’ and hiked its target price to Rs 1,610 from Rs 1,585, a potential upside of 25 per cent from Wednesday’s closing level.

The global brokerage firm said that the company's volume growth is on an uptrend, led by strong demand in tractors and a cyclical recovery in light commercial vehicles. Besides, the SUV business has been a drag but even its volumes are recovering on a low base, it said.

The volumes and earnings per share are likely to grow at a compounded annual growth rate of 11 per cent and 13 per cent, respectively over FY17-20, it said.

CLSA said the upcoming Mahindra & Mahindra's multi-purpose vehicle launch due this financial year-end could boost growth for the automaker if designed well and priced right. It also expects a pick-up in the rural economy to benefit the Anand Mahindra-led company.

The stock, the brokerage said, looks attractive after underperforming the Nifty by 13 per cent since June. The company has been in the midst of good news flow, helping the stock rally about 5 per cent in the past three sessions.

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