Mahindra CIE Automotive scales over 4% to hit a 52

Sep 20, 2023

Mahindra CIE Automotive Limited is an India-based multi-technology automotive components supplier.

Karur Vysya Bank shares gain over 3% after Q4 net profit grows 59%

Apollo Tyres vs CEAT: Which tyre maker should you pick after stellar Q4 earnings?

Tata Motors shifts into top gear with robust Q4 performance; brokerages retain 'buy' rating

What are the investing mistakes retail investors make and how to avoid them?

What are the risks involved in call options? MintGenie explains

What are bid price and ask price? MintGenie explains

Shares of Mahindra CIE Automotive rose 4.6 percent on Tuesday, May 16, to record a new 52-week high following the announcement of its investment in Clean Max Deneb Power LLP (Clean Max Deneb), a company specializing in green energy sourcing for captive use.

Mahindra CIE Automotive has been actively pursuing strategies to optimize power costs and promote the adoption of sustainable energy solutions across its power-intensive plants.

In line with this commitment, the company has invested ₹4.16 crore in Clean Max Deneb to further bolster its efforts in achieving cost efficiency and greener energy consumption.

During Tuesday's trade, the stock opened at a price of Rs. 450.50 per share against the previous close of Rs. 448.95 per share and grew further during the early trading session to touch a 52-week high of Rs. 469.90.

It was trading at ₹463, up by 3.13 percent, at 11:50 a.m. on the NSE.

The stock touched a 52-week low of Rs. 168 on May 25, 2022, indicating that at the current price, it is trading over 175 percent above that level.

The stock has shown a growth of nearly 59 percent in the last six months. Moreover, in the past one year, it has given a positive return of almost 140 percent. Furthermore, in the last five years, the stock has gained over 90 percent.

Clean Max Deneb, a company specializing in renewable energy solutions, is currently constructing captive power generation facilities in Karnataka. These facilities include wind turbine generators with a capacity of 2.7 MVA in Jagaluru, Chitradurga District, and a solar photovoltaic power plant with a capacity of up to 6 MWp.

The primary purpose of these facilities is to supply captive power to the company's plants located in Karnataka and Tamil Nadu.

To meet the criteria of a captive consumer, the company is required to hold a minimum of 26% of the total capital contribution of the wind and solar power generating plants.

Therefore, the investment made is primarily aimed at qualifying as a captive consumer and subsequently optimizing the power costs at the company's plants in Karnataka and Tamil Nadu.

Mahindra CIE Automotive Limited is an India-based multi-technology automotive components supplier with a presence in many technologies, which include forgings, castings, stampings, magnetic products and composites. It has approximately 31 manufacturing facilities including eight manufacturing facilities in Europe and one in Mexico.

According to a MintGenie poll, 7 analysts on an average have a ‘BUY’ call on the stock.

Not sure, how your investing profile should look like