Shares of Mahindra and Mahindra (M&M) rose 2.5% to Rs 1,259.40 in Mahindra’s upcoming electric SUV on Wednesday after the company and Jio-bp announced the strengthening of a robust charging network with Jio-bp.

Jio-bp is a fuel and transport joint venture between Reliance Industries Limited (RIL) and bp. Last year, the two companies signed a memorandum of understanding to explore creating electric vehicle products and services while identifying synergies between low-carbon and traditional fuels.

M&M was trading 1.4% higher at Rs 1,245.90 at 10:20 am, while the S&P BSE Sensex was up 0.27%. Shares of the passenger car and utility vehicle company hit an all-time high of Rs 1,365.90 on September 9, 2022.

Meanwhile, CARE Ratings reiterated its rating of M&M’s existing bank facilities with a stable outlook. Mahindra & Mahindra’s (M&M) Bank Loan’s assigned ratings to continue to consider the strong market position and leadership in the domestic tractor industry, light commercial vehicle (LCV), and electric tricycle segment, diversified business profile and experienced management.

The rating also considers a solid financial risk profile driven by strong capital structure, debt coverage metrics, and financial flexibility supported by substantial, unencumbered cash and liquid investments. In its rationale, CARE Ratings said CARE also noted that M&M held investments in some listed group entities with a market capitalisation above book value, thus providing additional financial flexibility.

M&M also has many new models to roll out over the next few years. CARE Ratings believes that while the launch of new models will help the company increase sales, M&M will continue to face stiff competition in the automotive industry in the long run.