Mahindra & Mahindra Ltd.

Current Price Rs. 857/-Target price Rs. 1452/-

History • Founded in 1945 • Key people : Keshub Mahindra (Chairman),

Anand Mahindra (Vice-Chairman & Managing Director)

• Products: Steel, Automobiles, Software, Telecommunications, Hotels, Consumer goods

• Employees : 75,000 (16,000 automobile) • Headquarters : Mumbai • Revenue:US$6.3 billion(FY 2008-2009)

Mahindra & Mahindra Ltd.

Automotive • Domestic Operations & International

Operations • Mahindra Renault Private Limited (MRPL) • Mahindra Navistar Automotives Limited

(MNAL) • Mahindra Navistar Engines Private Limited

(MNEPL)

After-Market Sector • Mahindra Spares Business• Mahindra First Choice • Mahindra First Choice Wheels LtdFarm Equipment Sector • Domestic Operartions • International Operations • Mahindra Gujarat Tractor • Mahindra Agribusiness • Mahindra Powerol • Mahindra USA • Mahindra Australia • Mahindra China Tractors

Global Operation

• China and the United Kingdom, and has three assembly plants in the USA.

• M&M has partnerships with international companies like Renault , France and International Truck and Engine Corporation, USA.

• Subsidiaries include Mahindra Europe based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.

• M&M made its entry into the passenger car segment with the Logan in April 2007 under the Mahindra Renault joint venture.

• 20 models including new generation multi-utility vehicles like Scorpio ,Bolero & XYLO.

• M&M will make its maiden entry into the heavy trucks segment with Mahindra Navistar, the joint venture with International Truck, USA

• MUVs, LCVs and three wheelers.

Achievements • Mahindra & Mahindra is the only Indian company among

the top three tractor manufacturers in the world• Mahindra's Farm Equipment Sector has recently won the

Japan Quality Medal• While the world-class Scorpio (declared to be the ‘Car of

the Year’ by CNBC Autocar, BBC Wheels and Business Standard Motoring)

• Credit rating agency, CRISIL has reaffirmed its GVC Level 1 rating on Mahindra & Mahindra (M&M). The rating indicates that M&M`s capability with regard to corporate governance and value creation for all its stakeholders is the highest.

Product mix

Automobile Sales

(‘000 units) Domestic Sales Exports

  FY08 FY09 Growth FY08 FY09 Growth

MHCV 275 184 -33.20% 22 17 -23.70%

LCV 216 201 -7.10% 37 26 -30.10%

Passenger Cars 1,204 1,219 1.30% 211 332 57.00%

UV and MPV 346 332 -4.00% 7 4 -42.40%

Three Wheelers 365 350 -4.10% 141 148 4.80%

Two Wheelers 7,249 7,438 2.60% 820 1,004 22.50%

Tractors 302 304 0.60% 44 39 -12.10%

Industry

Budget Proposal

• Additional duty of Rs.20,000 applicable on cars with engine capacity exceeding 2000cc reduced to Rs.15,000.

• Excise duty on petrol-driven trucks reduced to 8 per cent from 20 per cent charged earlier.

• Agricultural credit flow at Rs 287000 crore in FY09. Target for FY10 at Rs 325000 crore.

• Allocation to National Highway development programmes has increased to 23 per cent.

Stake Subsidiary % of M&M ltd. holding

M & M Financial Services 67.7

Tech. Mahindra 44.4

Mahindra Lifespace 50.0

Mahindra Foreign 60.6

MUSCO 50.7

Mahindra Holidays 83.1

Stock Data

No. of Share 279 mn

Market Capitalization Rs. 239 bn

52 Week High/Low Rs. 892 / Rs. 236

Bloomberg Code MM IB

Reuters Code MAHM.BO

Face value Rs. 10

BSE code 500520

Shareholding Pattern (%) 30/06/09 31/03/09 31/12/08

Promoters 29.0 29.2 26.5

FII/NRI 29.2 31.5 31.9

Institutions 26.6 25.4 26.7

Private Corp

5.7 4.3 5.0

Public 9.6 9.6 9.9

Ratios

• Liquidity : CA/CL : 1.03• Quick ratio: 0.81• D/E: 0.7• Return On equity : 19.9• Assets turnover ratio: 2.5

Ratios 2009 2010E 2011E

P/E 24.4 17.7 16.0

EPS 23.6 40.1 45.4

MPS 1150.68

1419.54 1452.8

DPS(Rs) 12 12 12.50

Future Proposal

• Mahindra & Mahindra (M&M), India`s largest tractor maker, is planning to stake in Swaraj Engines, reports Business Standard.

• Its pickup trucks to US markets in the first quarter of 2010.

• The company said it has entered into an agreement with Punjab National Bank (PNB) for vehicle finance with low interest rate

Tata Motor M & M

Tata motors

2009 2010

EPS (40.1) 7.5

P/E (12.1) 55.3

MPS ------ 829.3

ROE (21.8) 4.5

If invested Rs. 1Lac now then…

• Can Buy 116 shares @ Rs 857• After 2 years can sell 116 shares @

Rs. 1452.8• Profit Rs 69112.8• Return of 69.52%

Thank You!