Shares of Mahindra CIE Automotive rose 6.5 percent on Thursday, December 15, after the company said that it has invested Rs. 2.42 crore in Strongsun Solar Private Limited.
Mahindra CIE has subscribed to 303,250 equity shares of the company which will be allotted on or before 5th January, 2023. After the allotment, Mahindra CIE will hold a 27 percent stake in Strongsun.
During Thursday's trade, Mahindra CIE opened at a price of Rs. 292 per share against the previous close of Rs. 286.95 per share and grew further during the early trading session to touch an intraday high of Rs. 305.60.
It was trading at ₹302.45, up by 5.4 percent, at 11:40 a.m. on the NSE.
The stock touched a 52-week high of Rs. 328 on October 20, 2022 and a 52-week low of Rs. 163.95 on March 23, 2022, indicating that at the current level, the stock is trading over 84 percent above its 52-week low and just 7.7 percent below its 52-week high.
The stock has shown a growth of nearly 50 percent in the last six months. In the past one year, it has given a positive return of over 25 percent. In the last five years, the stock has gained almost 26 percent.
“Strongsun is setting up two captive generating plants of the capacity of 7 MWp and 3 MWp to supply captive solar power from these plants to Mahindra CIE Automotive foundry division at urse (7 MWp) and magnetics products division at Bhosari (3 MWp) respectively.,” said the company in a filing.
In order to qualify as a captive consumer, the company must hold at least 26 percent of the total equity capital of the Power Generating Plant(s), it added.
Accordingly, the investment is essential to qualify as a captive consumer and thereby optimise the power cost at the plants.
Mahindra CIE Automotive is a multi-technology automotive components supplier with a presence in many technologies, which include forgings, castings, stampings, magnetic products and composites.
The company is focused on the automotive market, including cars, utility vehicles, commercial vehicles and tractors. It has approximately 31 manufacturing facilities including eight manufacturing facilities in Europe and one in Mexico.
According to a MintGenie poll, 7 analysts on average have a ‘BUY’ call on the stock.
