M&M shares fell 6% due to XUV700 price cuts. Countering peer discounts and weak sales, cuts could lower earnings but increase volumes. AX7, AX7L trims are 50-60% of 6,000-8,000/month volume. Axis Capital sets a target price at Rs 3,150. Domestic brokerage firm estimates 2-3% impact on overall EBITDA. Cuts affect EBITDA by Rs 300-350 mn/month for four months.
