Mahindra & Mahindra union leaders at Nashik plant calls off hunger strike - Angel Broking

According to media reports, the indefinite hunger-strike by two union leaders at Mahindra & Mahindra's (MM) Nashik plant has been called off. This is following positive talks between the MM management and union leaders on the issue of impending wage settlement. The two senior union leaders at the Nashik plant were on a hunger strike since May 1, 2013 demanding a quick resolution to the wage settlement agreement which expired in February 2013. However, the protests were peaceful and the production at the plant was not impacted due to the strike. The Nashik plant manufactures Scorpio, Xylo, Bolero and Quanto.

At Rs. 970, MM is trading at 14.2x FY2015 earnings. Due to the sharp run-up in the stock price over the last one month, we recommend a Neutral rating on the stock.

Source : Equity Bulls

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