1. CHETANA’S HAZARIMAL SOMANI
COLLEGE OF COMM & ECO
SMT. KUSUMTAI CHAUDHARI
COLLEGE OF ARTS
TOPIC: MAHINDRA & MAHINDRA LTD.
Presented To: Prof. Madhavi Muleek
Presented By : Manali Deshmukh

2. AGENDA
Company Overview
• Shareholding Pattern
• Financial Assessments
Fundamental Analysis
• Economic Analysis
• Industry Analysis
• Ratio Analysis
Technical Analysis
Conclusion 2

3. • Company Name : Mahindra & Mahindra Ltd.
• Sector: Automotive & Farm equipment
• Established in : 1945
• India's premier utility vehicle (UV) and farm equipment company
• Listed on: BSE/NSE
• Chairman & M.D.: Anand G Mahindra
• Products: Commercial Vehicle & Personal Vehicle
Company Overview
3www.mahindra.com

4. 4
Bolero SUV Reva
Chairman W Navistrar Truck
ALFA
Products
Crop Harvesting
Yuvraj
Rice Farming

5. Shareholding Pattern
25%
37%
21%
17%
Shareholding Pattern
Promoter
FII/NRI
Banks/MFs/Fis
Others
100% value 61,39,80,756
5Source: The Annual Report of Company

6. 902.40
Symbol- MNM
52 week High-974.80
52 week low- 621.75
904.20
Symbol-M&M
52 Week High - 976.00
52 week low - 621.10
Market Share
6
Source: BSE & NSE Website

7. 0%
20%
40%
60%
80%
100%
120%
FY07 FY08 FY09 FY10 FY11
Farm Equipment
Automotive
REVENUE BREAKUP
7Source: The Annual Report of the Company

8. Particulars Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
NET SALES 59,418 36,864 29,227 24,705 22,379
%change 61.18% 26.12% 18.30% 10.39%
(-) Total Expenditure 52068 30777 26066 23415 20952
% change 69.17% 18.07% 11.32% 11.75%
EBITDA 7349 6087 3160 1290 1427
% change 20.73% 92.62% 144.96% -9.6%
(-) Depreciation 1802 972 874 749 582
Revenue Statement
Rs. In crores
8

9. Particulars Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
EBIT 5548 5115 2287 541 845
(-) Interest 1800 1135 1121 858 716
Other Income 787 655 3259 2565 2373
PBT 4184 4515 4033 2248 2502
Tax 1408 1317 1161 542 658
Net Profit (PAT) 3127 3079 2871 1706 1845
1.56% 7.24% 68.2% -7.53%
9

10. FUNDAMENTAL ANALYSIS
10

11. • GDP growth rate 4.5% as on 3QFY12
• IIP as on June 2012 8.2%
• FII investment as on 2012 - 24304.7
• The Indian automotive industry has emerged as a 'sunrise
sector' in the Indian economy
• FDI investments in Automobile Sector for FY2012-13 4,089
crores
• Contribution of automotive sector towards GDP is 5% is
expected to grow double by 2016
Economic Analysis
11

12. • Large Domestic Market
• Sustainable Labor Cost advantage
• Government Incentives for Manufacturing
Cost
• Strong Engineering skills in designing etc.
Strength
• Low Labor productivity
• High interest costs & high overheads make the
production uncompetitive
• Various forms of taxes push up the cost of
production
• Low investment in Research & Development
• Infrastructure Bottleneck
Weaknesses
Industry Analysis
12

13. • Heavy thrust on mining and construction
activity
• Increase in the Income level
• Cut in excise duty
• Rising Rural demand
Opportunities
• Rising Input costs
• Rising interest Rates
• Cut throat competition
Threats
13www.autoindia.com

14. 2011 ET 500
Rank
Name Last Price Market Cap.
(Rs. cr.)
P/E Ratio
21
Mahindra &
Mahindra
904.20 54,702.62 17.76
19 Maruti Suzuki 1,425.00 41,169.68 23.40
7 Tata Motors 305.95 97,601.59 56.54
41
Hero
Motocorp Lt
1713.20 34,210.46 15.94
Comparison with Rivals
14
Source: ICICI Direct

15. 76%
16%
4%
4%
Indian Automobile industry Market Share
Two Wheelers Passenger Cars
Commercial vehicle & Three wheeler Three Wheelers4%
15
Source: Automotive Industry Report

16. • Agriculture forms 17% of India’s GDP
• Exports, primarily of tractors, have been a key driver
for growth in the sector
• M&M have 55% of Market Share in Farm equipment
16
Farm Equipment Sector

17. 17
226
263
318
302 304
400
480
535
F05 F06 F07 F08 F09 F10 F11 F12
Domestic Tractor Industry Growth
Source: Mahindra F12 Financial Report

18. Ratio Analysis
Ratio Formula Actual Ratio
Current Ratio Current Assets/ Current
Liability
2.67%
Quick Ratio Quick assets/Quick liability 1.37
Debt equity ratio Debt/equity 0.37
Interest coverage ratio EBIT+dep/interest 14.02times
Operating profit margin
ratio
Operating profit/sales*100 7.00%
18

19. Ratio Formula Actual Ratio
Net profit margin ratio Net profit/sales*100 5.00%
Debt Service Coverage
Ratio
EBDIT/Int.+Debt
repayment
7.22
Return on capital
employed
EBITDA/capital employed 11.00%
Earning per share PAT/No. of shares 51.74per share
Price earning ratio MPS/EPS 17.76%
19

20. TECHNICAL ANALYSIS
20

21. 21

22. • As per Fundamental & Technical Analysis would recommend to buy/ hold
this stock
• Target price- 1150
• With positive and supportive government policies expected to continue
for the domestic farm equipment sector, Mahindra should benefit the
most, being the largest tractor manufacturer in India.
• Increase in demand for diesel-powered vehicles should benefit the
company because diesel vehicles form 99% of Mahindra's overall PV
portfolio.
CONCLUSION
22

23. 23
www.mahindra.com
www.angelbroking.com
www.motilaloswal.com
www.moneycontrol.com
www.icicidirect.com
www.topstockresearch.com
www.siam.com
Karvybroking
Autoindia
Sources

24. THANK YOU
24