M&M tenders for multibillion dollar US Post order
Earlier, the company has received USD 11 million prototype contract from the government, which were built in Detroit.
Other companies who are in the race of this high-value contract are AM General, VT Hackney, Karsan and Oshkosh Corporation.
If the company bags this contract, it will provide 1.8 lakh vehicles over a six-year period as the postal department liquidates its old fleet.
The expected per vehicle cost will be approx. USD 35,000 and the company also expected to gain from the maintenance and repair contracts.
Mahindra Group has approx. USD 2 billion business in the US. If the contract is awarded, the vehicles will have to be made in the US, as per the conditions stipulated in the tender.
Mahindra & Mahindra Ltd is currently trading at Rs 1418.75, up by Rs 5.7 or 0.4% from its previous closing of Rs 1413.05 on the BSE.
The scrip opened at Rs 1420 and has touched a high and low of Rs 1423.75 and Rs 1414 respectively. So far 295567(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 87763.46 crore.
The BSE group ‘A’ stock of face value Rs 5 has touched a 52 week high of Rs 1508.8 on 09-Aug-2016 and a 52 week low of Rs 1141.8 on 02-Dec-2016. Last one week high and low of the scrip stood at Rs 1417 and Rs 1366.1 respectively.
The promoters holding in the company stood at 25.25 % while Institutions and Non-Institutions held 54.38 % and 14.82 % respectively.
The stock is currently trading above its 50 DMA.