India's SML Mahindra extends rally after Mahindra deal; analysts see transfer as positive

Mahindra And Mahindra

30/07/2026 05:14

** Shares of SML Mahindra SMLM.NS up about 14% at 5,213 rupees, highest level since Feb 19
** Stock surged 20% on Wednesday
** Parent Mahindra & Mahindra MAHM.NS to transfer truck, bus business to SMLM for 5.25 billion rupees ($54.91 million)
** ICICI Securities notes that deal effectively doubles revenue base for SML from around 29 billion rupees to nearly 59-60 billion rupees
** Combined entity should benefit from scale, broader portfolio, enhanced market reach-Citi 
** Transaction is marginally EPS accretive for MAHM, materially value accretive for SML Mahindra-HSBC
** SMLM's RSI at 74.5, stock in "overbought" category- LSEG data
** MAHM up nearly 1% at 3,253.6 rupees
** YTD, SML up 29.30% vs MAHM's 12.5% fall
     
($1 = 95.6100 Indian rupees)

(Reporting by Saikeerthi in Bengaluru)
((Saikeerthi@thomsonreuters.com; (+91) 8296756080))