SML Isuzu shares: SML Mahindra shares tank for 3rd session in row after 33% gain in 6 months | Buy, sell or hold?
SML Mahindra share price continued to fall for the third session straight on Thursday, 22 October. Formerly known as SML Isuzu, the Mahindra Group stock opened at ₹5,200 per share on BSE today, compared to the previous close of ₹5,514.75 on Wednesday.
SML Mahindra shares have remained weak in the near-term, however, has given positive returns in the broader time frame despite market volatility. The stock has fallen 24.56% in a month but has gained 33% in six months.
Looking at the broader level, the stock has delivered multibagger returns of 290% in three years and 583% in five years.
SML Mahindra reported a 42.9% year-on-year (YoY) decline in net profit to ₹12 crore in the September quarter, compared with ₹21 crore in the corresponding quarter last year. However, revenue from operations increased 20.7% YoY to ₹670 crore from ₹555 crore a year earlier.
Despite the revenue growth, the company’s operating performance weakened, with earnings before interest, tax, depreciation and amortisation (EBITDA) falling 31% YoY to ₹29 crore from ₹42 crore. The EBITDA margin also contracted to 4.3% from 7.6% in the year-ago quarter, marking a decline of 3.3 percentage points.
Separately, the company said its proposed ₹525 crore acquisition of the truck and bus division of its parent, Mahindra & Mahindra Ltd, is expected to be completed on or before January 31, 2027. The transaction will be structured as a slump sale, involving the transfer of the business as a whole, with the final consideration subject to working capital adjustments as specified in the agreement. SML Mahindra added that it had not made any changes to its unaudited financial results for the September quarter and the first half of the financial year, as the acquisition is yet to be completed.
On the technical outlook, Gaurav Garg, Head - Research, Lemonn, said that the stock has declined sharply by around 8.5% (current week)to ₹5,031, indicating significant selling pressure and weakening momentum. The ₹5,000 level is an important immediate support, while ₹4,570 is the next key support if selling continues.
“A sustained breakdown below these levels could expose the stock to further downside towards ₹4,000. On the upside, ₹5,500– ₹5,600 is the immediate recovery zone, followed by resistance around ₹6,000– ₹6,400. A sustained move above ₹5,600 could indicate improving buying interest, but the stock needs to stabilise before a meaningful recovery can be expected,” Garg said.
He further recommended existing investors to maintain disciplined risk management and monitor the stock’s ability to hold key support levels and fresh investors to avoid catching the falling stock and wait for price stabilisation and a sustained recovery above ₹5,500– ₹5,600 before considering a fresh entry.
“While the company has long-term growth potential, near-term earnings pressure and technical weakness warrant a cautious approach,” he said.
Meanwhile, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, said that SML Mahindra shares have support at ₹4,485, while resistance is placed at ₹5,531.
The stock’s ability to sustain above the support level will be crucial for maintaining positive momentum. A decisive move above ₹5,531 could signal further upside, while a break below ₹4,485 may indicate increased selling pressure,” said Ojha.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsSML Isuzu shares: SML Mahindra shares tank for 3rd session in row after 33% gain in 6 months | Buy, sell or hold?
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