M&M not to be hit much by diesel car ban:Religare Cap

Mihir Jhaveri, Religare Capital Markets, says the Supreme Court's proposed ban on registration of diesel vehicles over 2000 cc in Delhi will lead to negative sentiment on Mahindra and Mahindra (M&M) stock as 98 percent of its portfolio is in vehicles above the set threshold.

However, Jhaveri does not expect any immediate earnings impact, as only about 2 percent of the company's sales is in the Delhi market.

Also, if implemented, the proposal suggests a ban on registration only for three months and it is unlikely to be extended, Jhaveri says, adding that the real worry though would be if these restrictions do get implemented in other cities as well.

"The news would have a sentimental impact on M&M as 98 percent of its portfolio is above 2000 cc cars. However, the proposal is yet to be finalized so we are not factoring in any major earnings impact as yet", Jhaveri says.