Highway Infrastructure Jumps 8%; SML Mahindra, M&M Fall Despite Sales Growth

Several stocks were in focus on Thursday, October 1, as investors reacted to monthly sales numbers, new contract wins, brokerage calls and company-specific developments. 

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Highway Infrastructure emerged among the notable gainers after announcing new contracts, while SML Mahindra and Mahindra & Mahindra (M&M) traded lower despite reporting year-on-year growth in overall September sales. Zydus Lifesciences and Lemon Tree Hotels were also in focus during the session. 

Highway Infrastructure Jumps 8% on Contract Win 

Highway Infrastructure shares gained 8% after the company entered into an agreement with the Uttar Pradesh Expressways Industrial Development Authority. 

The Rs 220.66-crore work order involves the collection of user fees and operation of toll plazas on the Gorakhpur Link Expressway. 

The company has also received a Letter of Acceptance worth Rs 24.46 crore from the National Highways Authority of India. The order is for operations at the Velanchettiyur Fee Plaza in Tamil Nadu. 

The two developments put Highway Infrastructure shares in focus during the session. 

SML Mahindra Falls Nearly 4% Despite Higher September Sales 

SML Mahindra shares moved in the opposite direction, falling nearly 4% even as the company’s September sales increased from a year earlier. 

The company reported total sales of 1,124 units during September, an 18% increase from 950 units in the corresponding period last year. 

Despite the year-on-year improvement in monthly sales, the stock remained under pressure. 

M&M Slips 2% as Tractor Sales Decline 

Mahindra & Mahindra shares fell 2% even though the company’s overall sales increased 15% year-on-year to 1.15 lakh units. 

Its passenger vehicle sales rose 14% to 64,092 units from 56,233 units in the same month last year. 

However, exports declined 7% year-on-year to 4,019 units from 4,320 units. 

The company’s tractor business also reported a decline during September. Tractor sales fell 21% year-on-year to 52,100 units, compared with 66,111 units in the corresponding period last year. 

Lemon Tree Hotels Gains After Darjeeling Opening 

Lemon Tree Hotels shares climbed more than 3% after the company opened Keys Prima in Darjeeling. 

The property marks the hotel group’s first presence in the town and expands its footprint in West Bengal. 

The newly opened hotel has 65 rooms and is managed by Lemon Tree Hotels’ subsidiary, Carnation Hotels. 

Zydus Lifesciences Falls After HSBC Retains Hold Rating 

Shares of Zydus Lifesciences traded lower after HSBC retained its Hold rating on the stock with a target price of Rs 1,100 per share. 

The brokerage identified the US launch of Saroglitazar as an important research and development milestone, while assuming that sales would build gradually. 

HSBC also said execution would remain important for achieving an EBITDA margin of 28-30% over the next five years. US FDA approval for Saroglitazar remains the key catalyst highlighted by the brokerage. 

With monthly sales figures, fresh orders, brokerage views and corporate developments arriving together, stock-specific moves remained prominent in Thursday’s trade.