BUDGET SPECIAL: M&M Ltd.

Mahindra & Mahindra Limited (M&M) is the flagship company of the Mahindra Group. For last 68 years, M&M is India’s premier utility vehicle company.Today, M&M offer a wide range of mobility products and solutions ranging from SUVs, electric vehicles, pickups, and commercial vehicles, small aircraft and boats that are tough, rugged, reliable, environment-friendly, and fuel-efficient.

Key Facts:

  • M&M  is the 3rd largest Passenger Vehicle Company, the 2nd largest Commercial Vehicle Company and the Largest Small Commercial Vehicle Company in India.
  • Company’s share of the total Indian Auto Industry stood at 11.0%.
  • Presence in 70+ countries.
  • Leadership position in the domestic UV market with a market share of 29.2%
  • “Mahindra” is the world’s largest selling tractor brand, by volume and India’s No.1 tractor maker for more than three decades now.
  • Tractor market share of 42.7% in FY 17 is the highest ever market share.
  • In the market segment LCV goods < 3.5T, which accounts for almost 50% of total CV-goods industry, M&M is at No.1 position.
  • In the Pik-UP sub-segment (LCV goods 2 to 3.5T), Company’s market share stands at 65.8%.
  • Scorpio and  Bolero has been a very successful brand for Company for several years now.
  • M&M is also  market leader in mechanisation solutions across the spectrum of farming operations. These include rotary tillers, cultivators, harvesters, rice trans planters and balers.
  • Mahindra EarthMaster is Construction Equipment division which manufacture  Indian Backhoe Loader(BHL). It is 4th largest BHL player in India.
  • Last year, M&M  acquired Hisarlar, a Turkish company with market leadership in soil preparation equipment.
  • Mahindra Won ‘Innovator for the Year’ Award at TIME India Awards 2017.
  • M&M hold Significant stake in Group Companies and associate companies which valued at 37,000cr INR.

Stock Outlook:

  • M-cap:  INR 94949 cr
  • CMP:  763 INR (29th Jan 2018)
  • EPS: 27.94 INR
  • PE: 27.3
  • Book Value: 206 INR
  • Share Capital 296.81 cr of FV 5
  • Promoter Share holding : 21.61  %.
  • DII/FII/FPI Share  holding: 54.09%

Budget Impact:

  • M&M’s TRRINGO is  India’s first tractor and farm equipment rental business, it aims to raise the level of mechanisation in farming by making technology more accessible to every farmer.
  •  In this year budget, Agriculture  will be main focus area and M&M is Perfect Diversified player in Agri related business.
  • From Tractor to Auto and from Farm equipment to complete irrigation solution , M&M have its footprint all over.
  • With Trusted Management and long history of Business Leadership, M&M is top pick for 2018 Budget with long term view of Investment.
  • Stock can outperform market in next 5-8 years.
  • Recommended to buy this Gems for your long term portfolio.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

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