Mahindra & Mahindra may buy SML Isuzu: This will increase M&M’s presence in the bus-truck segment; The company manufactures commercial vehicles

Mahindra & Mahindra Limited may buy stake in SML Isuzu. According to reports, Mahindra is in talks to buy the entire stake of the promoters in this company. SML Isuzu is an Indian company that manufactures light and medium size commercial vehicles.

This deal will help Mahindra & Mahindra to strengthen its presence in the truck and bus segment. According to the report, M&M is eyeing to buy SML Isuzu shares at a price of Rs 1,400 to Rs 1,500 per share.

SML Isuzu stock rises 3% to ₹ 1,703

After this news, SML Isuzu stock closed at Rs 1,703 with a gain of 3.09% on March 24. The current market cap of this company is Rs 2,500 crore. At the same time, M&M’s stock closed at Rs 2,777 with a decline of 0.89%.

According to the report, M&M’s board will consider the proposal to buy the promoters’ stake in SML Isuzu in a meeting this week. However, M&M has not given any official statement on this news.

Sumitomo holds 43.96% stake in SML Isuzu

As of the end of the December quarter, promoter Sumitomo Corporation held a 43.96% stake in SML Isuzu. At the same time, Isuzu Motors holds 15% stake.

In June 2023, a report said that Japanese company Sumitomo Corporation wants to exit its Indian unit and JBM Auto is showing interest in buying its stake.

SML Isuzu’s net profit fell by 80.22%

SML Isuzu’s net profit fell by 80.22% to Rs 53 lakh in the December quarter, while in the same quarter a year ago the company had a profit of Rs 2.68 crore.

The company’s revenue also declined by 14.07% to Rs 331.80 crore in the third quarter, while in the same quarter last year it was Rs 386.13 crore.