Mahindra & Mahindra (M&M) is in advanced discussions to acquire the entire promoter stake in SML Isuzu, according to a CNBC-Awaaz report on March 24, citing sources. This potential deal is expected to strengthen M&M\u2019s position in the commercial vehicle industry, particularly in the trucks and buses segment.<\/p>\n
As per the report, M&M is evaluating a valuation of \u20b91,400-1,500 per share for SML Isuzu. If the acquisition proceeds, it could mark a strategic expansion for M&M in India’s competitive commercial vehicle market.<\/p>\n
Following the news, SML Isuzu shares surged 5% to \u20b91,732 during intraday trading on March 24. The company’s market capitalisation currently stands at \u20b92,500 crore.<\/p>\n
Key stock performance metrics:<\/p>\n
52-week high: \u20b92,405<\/p>\n<\/li>\n
52-week low: \u20b91,028<\/p>\n<\/li>\n<\/ul>\n
Meanwhile, M&M shares traded 1.5% lower at \u20b92,759 on the BSE at 1:10 PM, reflecting mixed investor sentiment on the potential acquisition.<\/p>\n
According to CNBC-Awaaz, M&M\u2019s board is likely to meet this week to assess the proposal. However, M&M has declined to comment on market speculation at this stage.<\/p>\n
If the deal materializes, it would result in M&M acquiring the entire 43.96% promoter stake held by Sumitomo Corporation, as per exchange data as of December 2024. Additionally, Isuzu Motors holds a 15% stake in SML Isuzu.<\/p>\n
Despite acquisition talks, SML Isuzu\u2019s financial performance has been under pressure, with a significant decline in both net profit and revenue.<\/p>\n
For Q3 FY24 (December 2024 quarter):<\/p>\n
Net profit declined by 80.22% to \u20b90.53 crore, compared to \u20b92.68 crore in Q3 FY23 (December 2023).<\/p>\n<\/li>\n
Sales dropped by 14.07%, standing at \u20b9331.80 crore in Q3 FY24, compared to \u20b9386.13 crore in Q3 FY23.<\/p>\n<\/li>\n<\/ul>\n
These financials indicate challenging market conditions for SML Isuzu, which could be a key factor in the Japanese promoters\u2019 decision to exit their India operations.<\/p>\n
Sumitomo Corporation, the Japanese promoter of SML Isuzu, has reportedly been looking to exit its India operations for some time.<\/p>\n
In June 2023, CNBC-TV18 reported that JBM Auto was among the top contenders to acquire SML Isuzu, but no deal materialized. With M&M now leading the discussions, the acquisition could signal a major consolidation move in India\u2019s commercial vehicle market.<\/p>\n
If M&M successfully acquires SML Isuzu, it would:<\/p>\n
Strengthen M&M\u2019s footprint in the trucks and buses market, competing with industry leaders like Tata Motors and Ashok Leyland.<\/p>\n<\/li>\n
Bring additional manufacturing capabilities, allowing M&M to expand its commercial vehicle portfolio.<\/p>\n<\/li>\n
Leverage SML Isuzu\u2019s existing dealer network to enhance M&M\u2019s market presence.<\/p>\n<\/li>\n<\/ul>\n
With India\u2019s commercial vehicle sector poised for growth, driven by government infrastructure spending and rising logistics demand, this acquisition could be a strategic growth move for M&M in the long term.<\/p>\n","protected":false},"excerpt":{"rendered":"
M&M Eyes Expansion in Trucks and Buses Segment Mahindra & Mahindra (M&M) is in advanced discussions to acquire the entire promoter stake in SML Isuzu, according to a CNBC-Awaaz report on March 24, citing sources. This potential deal is expected to strengthen M&M\u2019s position in the commercial vehicle industry, particularly in the trucks and buses […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615,1365],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5759","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news","8":"category-business-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5759"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5759\/revisions"}],"predecessor-version":[{"id":5783,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5759\/revisions\/5783"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5760"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5759"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}