Equity Research Report of Mahindra & Mahindra
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Oct 07, 2025
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About This Presentation
An equity research report on Mahindra & Mahindra analyzing its financial performance, market position, growth drivers, valuation, and future outlook in the Indian automotive and farm equipment sector.
Slide Content
Academic Research Project –Not a Recommendation
Equity Research Report
Mahindra & Mahindra Ltd.
India’s No. 1 SUV Manufacturer by revenue market share
Recommendation : XXX
CMP : INR 2082.1
Taregt Price : XXX
Stock Data (as on April 23, 2024)
NIFTY : 22,410.6
52 Weeks H/L (INR): 2133/1196
Market Cap (INR Cr): 2,58,890
O/S Shares (Cr) : 124.35
Dividend Yield (%): 0.71%
NSE Code : M&M
Apr-23Jul-23Oct-23Jan-24
NIFTY M&M
Relative Stock Performance – 1Y
Shareholding Pattern (Mar 31, 2024)
Promoters : 18.6%
FIIs : 41.8%
DIIs : 26.2%
Public : 09.7%
Others : 03.8%
1 Year : 70.08%
3 Years : 165.15%
5 Years : 209.82%
Absolute Returns
Financial Summary
In INR Cr FY23FY24EFY25E
Net Revenue121,268136,172146,157
YoY Growth % 34%12.3%7.3%
EBITDA 202852438226609
EBITDA (%) 16.7%25.4%10.7%
Adj PAT 90321108712024
YoY Growth % 57%22.7%8.5%
ROE 22% 18%16.9%
Adj EPS (In INR)80.892.498.6
EV/EBITDA 11.0 x10.9 x10.0 x
Prepared by: Pranjal Thareja
Guided by: Parth Verma (The Valuation School)
About the Company
Mahindra&MahindraLimited(hereinafterreferredtoas“M&M”or“The
Company”)istheflagshipcompanyoftheMahindraGroup.M&MisanIndian
Multinationalautomobilemanufacturingcorporationheadquarteredin
Mumbai.TheCompanywasincorporatedin1945withthenameMahindra&
MohammedLtd.TheCompanywasrenamedMahindra&MahindraLtdinthe
year1948.
TheCompanyhas21manufacturingplantsinIndiaand67Manufacturing
facilitiesaroundtheworld.TheCompanyhas21R&Dfacilitiessetupin21
centresacross7countries.MahindraResearchValley(MRV),Chennai,the
flagshipR&DservesasahubforinnovationandtechnologyfortheAutoand
FarmDivisionsoftheCompany.
TheGroupenjoysaleadershippositioninfarmequipment,utilityvehicles,
informationtechnology,andfinancialservicesinIndia.TheCompanyisWorld’s
largesttractorcompanybyvolumeandIndia’sNo.1SUVmanufacturerby
revenuemarketshare.TheCompanyistheNo.1CommercialVehicleExporter
(CV)andalsothesecond-largestcommercialvehiclecompany.
Thecompanygenerates68.6%oftotalrevenuefromtheautomotivesegment,
28.2%fromthefarmequipmentsegment,and3.2%fromtherestofthe
segments.
Duringtheyear2022-23,theCompanyincreaseditsshareholdinginSwaraj
EnginesLimited(SEL)byacquiring21,14,349EquitySharesconstituting17.41%
ofthePaid-upEquityShareCapitalofSELfromKirloskarIndustriesLimited
(KIL)andSELwasmadethesubsidiaryoftheCompany.
Key Highlights
•The Company’s topline grew at a healthy pace owing to a strong demand
momentum, aided by product launches. Healthy pipeline are expected to
further increase the company’s financial performance.
•Topline growth of 34.5% on a YoY basis was achieved for FY23 and growth
of 15.23% on a QoQ basis in Q2FY24.
•Gross margins were contracted to 37% in FY2023.
•The Auto total volumes were up 18% at 212,000 and the revenue market
share is at 19.9%. The volume numbers of SUVs have moved up from
49,000 to 115,000 in the quarter. The Company’s volumes now are at a
production rate of over 42,000 a month.
•The Company has already triggered the Capex to increase the capacity from
42000 to 49000 by the end of March.
•In line with the EV vision, the Company announced to make investments of
INR 10 thousand crore over a horizon of 7-8 years through the subsidiaries.
•The Company sees an aggressive growth strategy for the farm sector
fuelled by growth in domestic tractor market share.
•During the year, Mahindra Farm Machinery clocked highest ever revenue
with YoY 40% growth.
Brief Overview
The Company posted rapid growth in the Auto Business and expects the
demand to continue for the newly launched models and the electric vehicle
segment.
Despite the industry decline in the farm sector, the company has been resilient
with the launch of OJA and Naya Swaraj and this sets up for success over the
next couple of decades.
The company claims that the Electric three-wheelers will reach 74,000 units a
year in terms of volume which is a substantial growth and again an aggressive
growth plan for Auto. The Company has a 61% market share and is a strong
Electric three-wheeler player.
The Company’s ROE target continues to be at 18%.
The stock currently trades at a P/E of 23x. With the increase in EPS to 92.4 and
P/E to 14.4, the price of stock is expected to reach XXX.
Equity Research Report
Mahindra & Mahindra Ltd.
India’s No. 1 SUV Manufacturer by revenue market share
Recommendation : XXX
CMP : INR 2082.1
Taregt Price : XXX
Stock Data (as on April 23, 2024)
NIFTY : 22,410.6
52 Weeks H/L (INR): 2133/1196
Market Cap (INR Cr): 2,58,890
O/S Shares (Cr) : 124.35
Dividend Yield (%): 0.71%
NSE Code : M&M
Apr-23Jul-23Oct-23Jan-24
NIFTY M&M
Relative Stock Performance – 1Y
Shareholding Pattern (Mar 31, 2024)
Promoters : 18.6%
FIIs : 41.8%
DIIs : 26.2%
Public : 09.7%
Others : 03.8%
1 Year : 70.08%
3 Years : 165.15%
5 Years : 209.82%
Absolute Returns
Financial Summary
In INR Cr FY23FY24EFY25E
Net Revenue121,268136,172146,157
YoY Growth % 34%12.3%7.3%
EBITDA 202852438226609
EBITDA (%) 16.7%25.4%10.7%
Adj PAT 90321108712024
YoY Growth % 57%22.7%8.5%
ROE 22% 18%16.9%
Adj EPS (In INR)80.892.498.6
EV/EBITDA 11.0 x10.9 x10.0 x
Prepared by: Pranjal Thareja
Guided by: Parth Verma (The Valuation School)
About the Company
Mahindra&MahindraLimited(hereinafterreferredtoas“M&M”or“The
Company”)istheflagshipcompanyoftheMahindraGroup.M&MisanIndian
Multinationalautomobilemanufacturingcorporationheadquarteredin
Mumbai.TheCompanywasincorporatedin1945withthenameMahindra&
MohammedLtd.TheCompanywasrenamedMahindra&MahindraLtdinthe
year1948.
TheCompanyhas21manufacturingplantsinIndiaand67Manufacturing
facilitiesaroundtheworld.TheCompanyhas21R&Dfacilitiessetupin21
centresacross7countries.MahindraResearchValley(MRV),Chennai,the
flagshipR&DservesasahubforinnovationandtechnologyfortheAutoand
FarmDivisionsoftheCompany.
TheGroupenjoysaleadershippositioninfarmequipment,utilityvehicles,
informationtechnology,andfinancialservicesinIndia.TheCompanyisWorld’s
largesttractorcompanybyvolumeandIndia’sNo.1SUVmanufacturerby
revenuemarketshare.TheCompanyistheNo.1CommercialVehicleExporter
(CV)andalsothesecond-largestcommercialvehiclecompany.
Thecompanygenerates68.6%oftotalrevenuefromtheautomotivesegment,
28.2%fromthefarmequipmentsegment,and3.2%fromtherestofthe
segments.
Duringtheyear2022-23,theCompanyincreaseditsshareholdinginSwaraj
EnginesLimited(SEL)byacquiring21,14,349EquitySharesconstituting17.41%
ofthePaid-upEquityShareCapitalofSELfromKirloskarIndustriesLimited
(KIL)andSELwasmadethesubsidiaryoftheCompany.
Key Highlights
•The Company’s topline grew at a healthy pace owing to a strong demand
momentum, aided by product launches. Healthy pipeline are expected to
further increase the company’s financial performance.
•Topline growth of 34.5% on a YoY basis was achieved for FY23 and growth
of 15.23% on a QoQ basis in Q2FY24.
•Gross margins were contracted to 37% in FY2023.
•The Auto total volumes were up 18% at 212,000 and the revenue market
share is at 19.9%. The volume numbers of SUVs have moved up from
49,000 to 115,000 in the quarter. The Company’s volumes now are at a
production rate of over 42,000 a month.
•The Company has already triggered the Capex to increase the capacity from
42000 to 49000 by the end of March.
•In line with the EV vision, the Company announced to make investments of
INR 10 thousand crore over a horizon of 7-8 years through the subsidiaries.
•The Company sees an aggressive growth strategy for the farm sector
fuelled by growth in domestic tractor market share.
•During the year, Mahindra Farm Machinery clocked highest ever revenue
with YoY 40% growth.
Brief Overview
The Company posted rapid growth in the Auto Business and expects the
demand to continue for the newly launched models and the electric vehicle
segment.
Despite the industry decline in the farm sector, the company has been resilient
with the launch of OJA and Naya Swaraj and this sets up for success over the
next couple of decades.
The company claims that the Electric three-wheelers will reach 74,000 units a
year in terms of volume which is a substantial growth and again an aggressive
growth plan for Auto. The Company has a 61% market share and is a strong
Electric three-wheeler player.
The Company’s ROE target continues to be at 18%.
The stock currently trades at a P/E of 23x. With the increase in EPS to 92.4 and
P/E to 14.4, the price of stock is expected to reach XXX.
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Global Economy
The global economy witnessed centenarian shock due to COVID-
19. While most of the countries witnessed sharp recovery post-
COVID, CY22 was a rocky ride due to high inflation, increased cost
of living, and spike in energy prices. Further, geopolitical tensions
between Russia and Ukraine disrupt the trade and supply chain,
especially for Western countries.
While Central banks across the globe are fighting inflation against
the rate hikes, the recent Israel and Gaza conflict could pose
challenges in energy costs and supply chain smoothening.
Due to the above issues, the developed economies grew at a
slower pace of 2.7% as against 5.0% in CY21. While Emerging and
Developing economies posted a growth of 4.5% against 6.5% in
CY22. The overall global economy witnessed a growth of 3.4% for
CY22 as against c. 5.0% in CY21.
Globalgrowthisprojectedtofallfromanestimated3.5%inCY22
to3.0%inbothCY23andCY24.WhiletheforecastforCY23is
modestlyhigherthanpredictedearlier,itremainsweakby
historicalstandards.Theriseincentralbankpolicyratestofight
inflationcontinuestoweighoneconomicactivity.Global
headlineinflationisexpectedtofallfrom8.7%inCY22to6.8%in
CY23and5.2%inCY24.
Source: IMF WEO, Company Analysis
0.50%2.50%4.50%6.50%8.50%
World
Advanced Economies
Emerging Economies
Euro Area
US
Japan
UK
China
India
Global GDP Projections (%)
2022A2023P2024P
Source: IMF WEO
Indian Economy
FY23 was a year of significant achievement for India, where it
surpassed UK to become 5
th
largest economy. India posted 7.2%
in FY23 which was above the global average of 3.5%.
Despite the global economic challenges viz. post-COVID impact,
supply chain disruptions, increased inflation and interest rate
hikes, the Indian economy was resilient towards growth which
was fueled by government initiatives on multiple fronts such as
PLI schemes, National Logistic reforms, increased infrastructure
spending, robust local demand, fast-paced digitization.
India will become the third largest economy by FY28, two years
earlier than projected, said SBI Research economists in a note.
SBI economists said India will likely grow 8.1% in the first quarter
of FY24, pushing the overall growth rate to 6.5%. India recorded
a 13.5% growth in the first quarter of FY23. The forecast aligns
with RBI projections of 6.5% growth in FY24 but is more
optimistic than the International Monetary Fund’s revised
forecast of 6.1%. Earlier this week, the IMF revised its growth
forecast upwards by 0.2 percentage points on the back of strong
domestic investment.
On the demand front, urban consumption is flat while rural
demand is showing signs of revival. Investment activity is
benefitting from public sector capex. Strong growth is seen in
imports and the production of capital goods. Further, inflation is
expected to be soften and within the targeted range soon.
Indian economy is robustly progressing over becoming 3
rd
largest
economy with $5tn GDP.
Source: IMF WEO, RBI, SBI Research, Company Analysis
6.80%
6.50%
3.90%
-5.80%
7.20%
6.30% 6.30%
2018 2019 2020 2021 2022 2023P 2024P
India vs Global GDP Growth (%)
India Global
Source: IMF, World Bank, RBI
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Q4FY22Q1FY23Q2FY23Q3FY23Q4FY23Q1FY24Q2FY24Q3FY24
India GDP Quarterly Growth - Actual vs
Projected
ActualProjectedSource: Investing.com
Mahindra & Mahindra
Global Economy
The global economy witnessed centenarian shock due to COVID-
19. While most of the countries witnessed sharp recovery post-
COVID, CY22 was a rocky ride due to high inflation, increased cost
of living, and spike in energy prices. Further, geopolitical tensions
between Russia and Ukraine disrupt the trade and supply chain,
especially for Western countries.
While Central banks across the globe are fighting inflation against
the rate hikes, the recent Israel and Gaza conflict could pose
challenges in energy costs and supply chain smoothening.
Due to the above issues, the developed economies grew at a
slower pace of 2.7% as against 5.0% in CY21. While Emerging and
Developing economies posted a growth of 4.5% against 6.5% in
CY22. The overall global economy witnessed a growth of 3.4% for
CY22 as against c. 5.0% in CY21.
Globalgrowthisprojectedtofallfromanestimated3.5%inCY22
to3.0%inbothCY23andCY24.WhiletheforecastforCY23is
modestlyhigherthanpredictedearlier,itremainsweakby
historicalstandards.Theriseincentralbankpolicyratestofight
inflationcontinuestoweighoneconomicactivity.Global
headlineinflationisexpectedtofallfrom8.7%inCY22to6.8%in
CY23and5.2%inCY24.
Source: IMF WEO, Company Analysis
0.50%2.50%4.50%6.50%8.50%
World
Advanced Economies
Emerging Economies
Euro Area
US
Japan
UK
China
India
Global GDP Projections (%)
2022A2023P2024P
Source: IMF WEO
Indian Economy
FY23 was a year of significant achievement for India, where it
surpassed UK to become 5
th
largest economy. India posted 7.2%
in FY23 which was above the global average of 3.5%.
Despite the global economic challenges viz. post-COVID impact,
supply chain disruptions, increased inflation and interest rate
hikes, the Indian economy was resilient towards growth which
was fueled by government initiatives on multiple fronts such as
PLI schemes, National Logistic reforms, increased infrastructure
spending, robust local demand, fast-paced digitization.
India will become the third largest economy by FY28, two years
earlier than projected, said SBI Research economists in a note.
SBI economists said India will likely grow 8.1% in the first quarter
of FY24, pushing the overall growth rate to 6.5%. India recorded
a 13.5% growth in the first quarter of FY23. The forecast aligns
with RBI projections of 6.5% growth in FY24 but is more
optimistic than the International Monetary Fund’s revised
forecast of 6.1%. Earlier this week, the IMF revised its growth
forecast upwards by 0.2 percentage points on the back of strong
domestic investment.
On the demand front, urban consumption is flat while rural
demand is showing signs of revival. Investment activity is
benefitting from public sector capex. Strong growth is seen in
imports and the production of capital goods. Further, inflation is
expected to be soften and within the targeted range soon.
Indian economy is robustly progressing over becoming 3
rd
largest
economy with $5tn GDP.
Source: IMF WEO, RBI, SBI Research, Company Analysis
6.80%
6.50%
3.90%
-5.80%
7.20%
6.30% 6.30%
2018 2019 2020 2021 2022 2023P 2024P
India vs Global GDP Growth (%)
India Global
Source: IMF, World Bank, RBI
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Q4FY22Q1FY23Q2FY23Q3FY23Q4FY23Q1FY24Q2FY24Q3FY24
India GDP Quarterly Growth - Actual vs
Projected
ActualProjectedSource: Investing.com
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Global Automobile Industry
The Worldwide sales of Passenger Cars and Commercial Vehicles
showed a marginal de-growth of 1% with 81.6m units in CY22 as
against 82.7m units in CY21. Global Passenger Car sales
witnessed a growth of 1.9% and Commercial Vehicle sales
reported a degrowth of 8.3%. The Global Automobile industry is
yet to recover from COVID impact and is still down by 11% from
its all-time high in 2017. The current global market for
Automotive Manufacturing was valued at $2.9 trillion in 2022,
and it is currently growing at a CAGR of 3.1%. The industry is
predicted to grow at a CAGR of 3.71% between 2020 to 2030 and
will consist of 122.83 million units by the end of the decade,
representing a significant leap from 2020. The automotive
manufacturing industry is ranked 1
st
out of all global
manufacturing industries in terms of market size.
EV markets are seeing exponential growth of 58% CAGR over the
last five years. Annual global EV sales stand at 7.1 million which is
12.4% of total PV sales, as compared to just 1% five years back.
China is leading around with 60% of global electric car sales.
More than half of the electric cars on roads worldwide are now in
China. Europe, the second largest market, electric car sales
increased by over 15% in 2022. Electric car sales in the US, the
third largest market, increased 55% in 2022, reaching a sales
share of 8%.
Source: Research & Markets, OICA, IEA Reports
82
86
8890
949695
91
79
8382
85
88
91
94
98
102
105
109
0
20
40
60
80
100
120
Global Automotive Sales Forecast (Units in Mn)
Source: Statista
0.10.20.40.70.91.42.32.23.1
6.8
10.6
13.2
16.4
20.4
25.4
31.6
39.4
49.0
60.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Global EV Sales Forecast (Units in Mn)
Source: IEA Report
Indian Automobile Industry
The Indian Automobile Industry is estimated at USD 126.67
billion in 2024 and is expected to reach USD 187.85 billion by
2029, growing at a CAGR of 8.20% during 2023-2029. The Indian
economy has been expanding with the rise in disposable income
of middle-class consumers. This will have a favorable impact on
the increasing demand for automobiles. The automotive industry
is gaining traction as vehicle manufacturing increases.
India holds a strong position in the global heavy vehicles market
as it is the largest tractor producer, second-largest bus
manufacturer, and third-largest heavy truck manufacturer in the
world. India’s annual production of automobiles in FY23 was 25.9
million vehicles. India has a strong market in terms of domestic
demand and exports. In December 2022, India became the third-
largest automobile market in the world. In FY23, the Indian auto
industry has shown double-digit growth across all segments.
Passenger Vehicles have reached the new highest-ever mark with
3.89 million sales units. Indian auto industry sales (excluding two-
wheelers) have recorded highest ever sales of 5.3 million units
with 15.7% YoY growth.
India aims to double its auto industry size to Rs. 15 lakh crores by
the end of the year 2024. There has been an FDI inflow of $33.77
billion in the industry from April 2000 till September 2022 which
is around 5.48% of the total FDI inflows in India during the same
period. According to NITI Aayog, India’s EV industry is likely to
reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030. The EV market
in India is estimated to increase at a CAGR of 49% until 2030.
Initiatives like Make in India, the Automotive Mission Plan 2026,
and NEMMP 2020 will be net positive for the sector.
Source: Mordor Intelligence, IBEF, Static.gov, Economic Survey
1818
20
21
22
25
26
22
19
18
21
23
25
27
29
31
34
37
40
0
5
10
15
20
25
30
35
40
45
Indian Automotive Sales Forecast (Units in Mn)
Source: Statista
0.40.40.61.11.6
2.4
3.6
5.4
8.1
12.0
17.9
26.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2019A2020A2021A2022A2023P2024P2025P2026P2027P2028P2029P2030P
Indian EV Sales Forecast (Units in Lakhs)
Source: IEA, Economic Survey 2023
74.8%
18.4%
4.5%
2.3%
Market Share of Auto Industry in India
Two-Wheelers
Passenger Vehicles
Commercial Vehicles
Three-Wheelers
Mahindra & Mahindra
Global Automobile Industry
The Worldwide sales of Passenger Cars and Commercial Vehicles
showed a marginal de-growth of 1% with 81.6m units in CY22 as
against 82.7m units in CY21. Global Passenger Car sales
witnessed a growth of 1.9% and Commercial Vehicle sales
reported a degrowth of 8.3%. The Global Automobile industry is
yet to recover from COVID impact and is still down by 11% from
its all-time high in 2017. The current global market for
Automotive Manufacturing was valued at $2.9 trillion in 2022,
and it is currently growing at a CAGR of 3.1%. The industry is
predicted to grow at a CAGR of 3.71% between 2020 to 2030 and
will consist of 122.83 million units by the end of the decade,
representing a significant leap from 2020. The automotive
manufacturing industry is ranked 1
st
out of all global
manufacturing industries in terms of market size.
EV markets are seeing exponential growth of 58% CAGR over the
last five years. Annual global EV sales stand at 7.1 million which is
12.4% of total PV sales, as compared to just 1% five years back.
China is leading around with 60% of global electric car sales.
More than half of the electric cars on roads worldwide are now in
China. Europe, the second largest market, electric car sales
increased by over 15% in 2022. Electric car sales in the US, the
third largest market, increased 55% in 2022, reaching a sales
share of 8%.
Source: Research & Markets, OICA, IEA Reports
82
86
8890
949695
91
79
8382
85
88
91
94
98
102
105
109
0
20
40
60
80
100
120
Global Automotive Sales Forecast (Units in Mn)
Source: Statista
0.10.20.40.70.91.42.32.23.1
6.8
10.6
13.2
16.4
20.4
25.4
31.6
39.4
49.0
60.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Global EV Sales Forecast (Units in Mn)
Source: IEA Report
Indian Automobile Industry
The Indian Automobile Industry is estimated at USD 126.67
billion in 2024 and is expected to reach USD 187.85 billion by
2029, growing at a CAGR of 8.20% during 2023-2029. The Indian
economy has been expanding with the rise in disposable income
of middle-class consumers. This will have a favorable impact on
the increasing demand for automobiles. The automotive industry
is gaining traction as vehicle manufacturing increases.
India holds a strong position in the global heavy vehicles market
as it is the largest tractor producer, second-largest bus
manufacturer, and third-largest heavy truck manufacturer in the
world. India’s annual production of automobiles in FY23 was 25.9
million vehicles. India has a strong market in terms of domestic
demand and exports. In December 2022, India became the third-
largest automobile market in the world. In FY23, the Indian auto
industry has shown double-digit growth across all segments.
Passenger Vehicles have reached the new highest-ever mark with
3.89 million sales units. Indian auto industry sales (excluding two-
wheelers) have recorded highest ever sales of 5.3 million units
with 15.7% YoY growth.
India aims to double its auto industry size to Rs. 15 lakh crores by
the end of the year 2024. There has been an FDI inflow of $33.77
billion in the industry from April 2000 till September 2022 which
is around 5.48% of the total FDI inflows in India during the same
period. According to NITI Aayog, India’s EV industry is likely to
reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030. The EV market
in India is estimated to increase at a CAGR of 49% until 2030.
Initiatives like Make in India, the Automotive Mission Plan 2026,
and NEMMP 2020 will be net positive for the sector.
Source: Mordor Intelligence, IBEF, Static.gov, Economic Survey
1818
20
21
22
25
26
22
19
18
21
23
25
27
29
31
34
37
40
0
5
10
15
20
25
30
35
40
45
Indian Automotive Sales Forecast (Units in Mn)
Source: Statista
0.40.40.61.11.6
2.4
3.6
5.4
8.1
12.0
17.9
26.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2019A2020A2021A2022A2023P2024P2025P2026P2027P2028P2029P2030P
Indian EV Sales Forecast (Units in Lakhs)
Source: IEA, Economic Survey 2023
74.8%
18.4%
4.5%
2.3%
Market Share of Auto Industry in India
Two-Wheelers
Passenger Vehicles
Commercial Vehicles
Three-Wheelers
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Indian Automobile Industry
CAPEX
The overall capex of the automotive sector is all set to cross $3 billion and is likely to inch closer to Rs27,000 crore for the full year. As per
Axis Capital, the capex has shown a YoY growth of 24%. It is also estimated that for the full year FY23, the total capex of the auto sector
overall will surpass the previous highs of Rs 26,800 crore during the pre-COVID peak in FY20. Since then, the total capex has been on a
downtrend and FY23 is all set to witness a record in auto capex spending. This clearly shows lots of confidence among CFOs and CEOs that
the demand will sustain in the coming years and the challenge now is to boost supply.
The cumulative capex was just about Rs37,481 crore in the years FY21 and FY22 put together. In contrast, FY23 is likely to see a sharp pick
up in capex at over Rs 27,000 crore. The capex boost has come from the two mega players in the auto sector in India viz. Tata Motors and
Mahindra & Mahindra. These are the two companies that will see enhanced capex of Rs 4,000 crore between them and they have the
reason for the capex upgrade of the auto sector in FY23.
Source: OEC.world, Statista
Source: Axis Capital, 5 Paisa
Exports
India is a major exporter of vehicles and auto parts. Among vehicles, the major export segment includes passenger cars, commercial
vehicles, two-wheelers, three-wheelers and quadricycles. Major export destinations of Indian automobiles include- the US, South Africa,
Mexico, Bangladesh, the UAE, Saudi Arabia, Turkey, Colombia, Brazil, Nigeria, Nepal, Indonesia, and the Philippines. As per Ministry of
Commerce, the US is a major export partner with close to US$ 3 billion in exports.
40.42
46.26
47.47
41.33
56.15
47.59
45.00
-20%
-10%
0%
10%
20%
30%
40%
0
10
20
30
40
50
60
FY18 FY19 FY20 FY21 FY22 FY23 FY24
Auto Exports Numbers (Units in Lakhs)
Series1 Series2
0.05%
4.70%
31.13%
31.79%
32.22%
0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%
Pickup
MUV
Hatchback
Sedan
SUV
Body Style Wise Export
0.04%
0.3%
2.7%
97%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
Strong Hybrid
Electric
Diesel
Petrol
Fuel Wise Export
Source: SIAM, Auto Punditz
Imports
In 2022,Indiaimported $540M inCars, becoming the world’s 88
th
largest importer ofcars. In the same year,Carswere the 175th most
imported product inIndia.IndiaimportsCarsprimarily from Germany($85.1M),China($77.2M),Japan($74.4M),United
Kingdom($59.2M), andUnited Arab Emirates($34M).
2.87
2.58
0.05
5.84
3.24
3.55
0.89
2.1
7.2
2.59
0
1
2
3
4
5
6
7
8
2014201520162017201820192020202120222023
India Imports of Vehicles (Units in $Billions)
2%
5%
5%
7%
8%
9%
14%
18%
31%
0% 5% 10% 15% 20% 25% 30% 35%
Rubber Components
Consumerables and misc.
Cooling System
Suspension and Braking
Interiors (non electronic)
Body/Chassis
Electronics and Electricals
Engine Components
Drive Transmission and Steering
Auto Components Import to India
Mahindra & Mahindra
Indian Automobile Industry
CAPEX
The overall capex of the automotive sector is all set to cross $3 billion and is likely to inch closer to Rs27,000 crore for the full year. As per
Axis Capital, the capex has shown a YoY growth of 24%. It is also estimated that for the full year FY23, the total capex of the auto sector
overall will surpass the previous highs of Rs 26,800 crore during the pre-COVID peak in FY20. Since then, the total capex has been on a
downtrend and FY23 is all set to witness a record in auto capex spending. This clearly shows lots of confidence among CFOs and CEOs that
the demand will sustain in the coming years and the challenge now is to boost supply.
The cumulative capex was just about Rs37,481 crore in the years FY21 and FY22 put together. In contrast, FY23 is likely to see a sharp pick
up in capex at over Rs 27,000 crore. The capex boost has come from the two mega players in the auto sector in India viz. Tata Motors and
Mahindra & Mahindra. These are the two companies that will see enhanced capex of Rs 4,000 crore between them and they have the
reason for the capex upgrade of the auto sector in FY23.
Source: OEC.world, Statista
Source: Axis Capital, 5 Paisa
Exports
India is a major exporter of vehicles and auto parts. Among vehicles, the major export segment includes passenger cars, commercial
vehicles, two-wheelers, three-wheelers and quadricycles. Major export destinations of Indian automobiles include- the US, South Africa,
Mexico, Bangladesh, the UAE, Saudi Arabia, Turkey, Colombia, Brazil, Nigeria, Nepal, Indonesia, and the Philippines. As per Ministry of
Commerce, the US is a major export partner with close to US$ 3 billion in exports.
40.42
46.26
47.47
41.33
56.15
47.59
45.00
-20%
-10%
0%
10%
20%
30%
40%
0
10
20
30
40
50
60
FY18 FY19 FY20 FY21 FY22 FY23 FY24
Auto Exports Numbers (Units in Lakhs)
Series1 Series2
0.05%
4.70%
31.13%
31.79%
32.22%
0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%
Pickup
MUV
Hatchback
Sedan
SUV
Body Style Wise Export
0.04%
0.3%
2.7%
97%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
Strong Hybrid
Electric
Diesel
Petrol
Fuel Wise Export
Source: SIAM, Auto Punditz
Imports
In 2022,Indiaimported $540M inCars, becoming the world’s 88
th
largest importer ofcars. In the same year,Carswere the 175th most
imported product inIndia.IndiaimportsCarsprimarily from Germany($85.1M),China($77.2M),Japan($74.4M),United
Kingdom($59.2M), andUnited Arab Emirates($34M).
2.87
2.58
0.05
5.84
3.24
3.55
0.89
2.1
7.2
2.59
0
1
2
3
4
5
6
7
8
2014201520162017201820192020202120222023
India Imports of Vehicles (Units in $Billions)
2%
5%
5%
7%
8%
9%
14%
18%
31%
0% 5% 10% 15% 20% 25% 30% 35%
Rubber Components
Consumerables and misc.
Cooling System
Suspension and Braking
Interiors (non electronic)
Body/Chassis
Electronics and Electricals
Engine Components
Drive Transmission and Steering
Auto Components Import to India
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Indian Sports Utility Vehicles (SUV) Market
The SUV market in India has been experiencing significant growth in
recent years. Indian customers have shown a growing preference for
SUVs due to their spaciousness, versatility, and ruggedness. SUVs
are seen as a status symbol and are often associated with adventure
and freedom. Additionally, Indian roads are notorious for their poor
conditions, and SUVs are perceived as better equipped to handle
these challenges compared to smaller cars.
The introduction of compact SUVs has further fueled the market
growth, as these vehicles offer the benefits of an SUV in a smaller
and more affordable package. The demand for SUVs is expected to
continue to rise as more customers seek the benefits and offered by
these vehicles.
SUVs now account for nearly 50% of all passenger vehicle sales in
India, doubled their market share in five years. This shift in buyer
preference towards larger vehicles has come at the expense of small
cars. The popularity of SUVs is due to a wide range of models and
their higher road presence, which is seen as a sign of value. The
SUVs segment is estimated to register the fastest CAGR of 13.0%(Till
2030).
88
9999
7
9
11
13
14
16
18
21
24
27
30
0
5
10
15
20
25
30
35
Indian SUV Sales Forecast (Units in Lakhs)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 20162017 20182019 20202021 2022
Market Share of Hatchback vs SUV vs Sedan
HatchbackSUVSedan
Source: BHP, Statista
Indian Commercial Vehicle (CV) Market
The India Commercial Vehicles Market size is estimated at USD
48.27 billion in 2024 and is expected to reach USD 62.95 billion by
2029, growing at a CAGR of 5.45% during the forecast period (2024-
2030).
The Indian truck market is experiencing significant growth due to
the growing investments in infrastructure projects, such as
highways, bridges, and ports. The government requires heavy-duty
trucks to support these developments. Companies in the truck
industry are offering vehicles specially designed for these types of
projects. Rising demand for pickup trucks, owing to the growing e-
commerce and logistics sector is responsible for making light
commercial vehicles the largest segment in commercial vehicle sales
in India.
In 2022, total truck sales were 9.6 lakh units. The largest share of the
market remains with the light-duty segment. With pivotal initiatives
such as Bharatmala focusing on road infrastructure and Sagarmala
on the modernization of ports, a comprehensive national logistics
policy, and a national infrastructure pipeline, the outlay for
development is high and will boost the demand for truck
deployment.
Source: Yahoo Finance, Mordor Intelligence
6.2
6.9
7.1
8.6
10.1
7.2
5.7
7.2
9.6
10.1
10.7
11.3
11.9
12.5
13.2
13.9
14.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Indian CV Sales Forecast (Units in Lakhs)
0.8
1.03
1.08
0.96
0.99
0.6
0.5
0.92
0.78
0
0.2
0.4
0.6
0.8
1
1.2
201420152016201720182019202020212022
Exports of CV from India (Units in Lakhs)
Source: Statista
Mahindra & Mahindra
Indian Sports Utility Vehicles (SUV) Market
The SUV market in India has been experiencing significant growth in
recent years. Indian customers have shown a growing preference for
SUVs due to their spaciousness, versatility, and ruggedness. SUVs
are seen as a status symbol and are often associated with adventure
and freedom. Additionally, Indian roads are notorious for their poor
conditions, and SUVs are perceived as better equipped to handle
these challenges compared to smaller cars.
The introduction of compact SUVs has further fueled the market
growth, as these vehicles offer the benefits of an SUV in a smaller
and more affordable package. The demand for SUVs is expected to
continue to rise as more customers seek the benefits and offered by
these vehicles.
SUVs now account for nearly 50% of all passenger vehicle sales in
India, doubled their market share in five years. This shift in buyer
preference towards larger vehicles has come at the expense of small
cars. The popularity of SUVs is due to a wide range of models and
their higher road presence, which is seen as a sign of value. The
SUVs segment is estimated to register the fastest CAGR of 13.0%(Till
2030).
88
9999
7
9
11
13
14
16
18
21
24
27
30
0
5
10
15
20
25
30
35
Indian SUV Sales Forecast (Units in Lakhs)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 20162017 20182019 20202021 2022
Market Share of Hatchback vs SUV vs Sedan
HatchbackSUVSedan
Source: BHP, Statista
Indian Commercial Vehicle (CV) Market
The India Commercial Vehicles Market size is estimated at USD
48.27 billion in 2024 and is expected to reach USD 62.95 billion by
2029, growing at a CAGR of 5.45% during the forecast period (2024-
2030).
The Indian truck market is experiencing significant growth due to
the growing investments in infrastructure projects, such as
highways, bridges, and ports. The government requires heavy-duty
trucks to support these developments. Companies in the truck
industry are offering vehicles specially designed for these types of
projects. Rising demand for pickup trucks, owing to the growing e-
commerce and logistics sector is responsible for making light
commercial vehicles the largest segment in commercial vehicle sales
in India.
In 2022, total truck sales were 9.6 lakh units. The largest share of the
market remains with the light-duty segment. With pivotal initiatives
such as Bharatmala focusing on road infrastructure and Sagarmala
on the modernization of ports, a comprehensive national logistics
policy, and a national infrastructure pipeline, the outlay for
development is high and will boost the demand for truck
deployment.
Source: Yahoo Finance, Mordor Intelligence
6.2
6.9
7.1
8.6
10.1
7.2
5.7
7.2
9.6
10.1
10.7
11.3
11.9
12.5
13.2
13.9
14.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Indian CV Sales Forecast (Units in Lakhs)
0.8
1.03
1.08
0.96
0.99
0.6
0.5
0.92
0.78
0
0.2
0.4
0.6
0.8
1
1.2
201420152016201720182019202020212022
Exports of CV from India (Units in Lakhs)
Source: Statista
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Global Tractor and Farm Equipment Industry
Theglobalagriculturaltractormarketwitnessedsalesof20.54lakh
unitsin2023.The industry is predicted to grow at a CAGR of 3.76%
between 2023 to 2030.
The tractor market has experienced steady growth in recent years,
driven by factors such as increasing mechanization in agriculture,
rising demand for high-horsepower tractors, and government
initiatives supporting farm mechanization. The global tractor market
is expected to grow as agriculture continues to modernize and adapt
to the changing needs of the world's population.Asia Pacific tractor
market accounted for 40% of revenue share in 2022.
The global Farm Equipment market is valued at USD 169.18 billion.
The rising demand for food is a critical factor driving the industry’s
growth. With the global population growing rapidly, there is
increasing pressure to produce more food. Sowing, tilling,
harvesting, and processing are all operations that equipment can
complete faster and with fewer people which helps in increasing
total farm efficiency. The market is categorized into tractors,
harvesting equipment, sprayers, and others. The tractor segment
holds around 41% of the overall market. The Asia Pacific dominated
the agriculture equipment market with a share of 38.25% in 2022.
The industry is expected to grow at a CAGR of 7.3%.
Source: Arizton, Global Market Insights, Fortune Business
65
56
74
78
81
84
87
90
94
97
101
0
20
40
60
80
100
120
2020A2021A2022A2023A2024P2025P2026P2027P2028P2029P2030P
Global Tractor Market Size (USD Billions)
156
121
150
163169
181
195
209
224
241
258
277
0
50
100
150
200
250
300
2019A2020A2021A2022A2023A2024P2025P2026P2027P2028P2029P2030P
Global Farm Equipment Market Size (USD
Billions)
Indian Tractor and Farm Equipment Industry
The mid to long-term outlook for the Indian tractor industry is
positive. The domestic tractor sales registered a healthy growth of
12.2% in FY23 with normal monsoons and good water reservoir
levels. Several initiatives taken by the Government are driving
higher rural incomes. The demand from the agriculture segment in
India is expected to remain subdued due to below-normal and
erratic monsoons across the country affecting food crops and rural
income. The deficit rainfall in eastern and southern India, as well as
the flooding in certain parts of north India, could further add
inflationary pressures thereby impacting tractor sales in the short
term.
The tractor industry plays an important role in India’s agricultural
sector, contributing approximately 17% to the country’s GDP. India
is renowned as one of the largest and most diversified food
producers globally, making agriculture a cornerstone of its economy.
India has seen growth in farm income owing to an increase in
minimum support price which further led to an increase in the sale
of tractors. The market leader in tractors in India, Mahindra and
Mahindra, felt that the year would end with around 900,000 units in
sales compared to 945,000 units sold in 2022-23. M&M enjoys a
41.8% share of India’s tractor market. The Indian tractor industry is
expected to grow at a CAGR of 5.8% till 2030.
In India, the proportion of farmers to total workers fell from 59.1%
in 1991 to 54.6% in 2011 and39.4% in 2021. Farm mechanization is
essential for reaching the targeted output levels and timeliness in
the various farm operations due to the continuously rising
production and demand for agricultural products and output. A
shortage of workers is pushing the demand for farm equipment.
India can dominate the world market by leveraging its machine
tools.
Source: Care Edge, Daily Pioneer
5.5
4.94.7
8.07.8
7.1
9.0
8.4
9.5
9.0
9.5
10.1
10.7
11.3
11.9
12.6
13.4
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Indian Tractor Sales Forecast (Units in Lakhs)
1062
978 956 985
882
1005
202.3 172.2 138.5
202.8 206.9
279.5
0
500
1000
1500
2015 2016 2017 2018 2019 2020
Total Farm Machinery Exports and Imports
Total Farm Machinery ExportsTotal Farm Machinery Imports
53%
12.30%
7.50%
8.40%
4.80%
14%
Sources of Indian Imports in non Tractor Farm
Machinery
China
Thailand
Japan
Italy
USA
Others
Source: Ministry of Commerce
Mahindra & Mahindra
Global Tractor and Farm Equipment Industry
Theglobalagriculturaltractormarketwitnessedsalesof20.54lakh
unitsin2023.The industry is predicted to grow at a CAGR of 3.76%
between 2023 to 2030.
The tractor market has experienced steady growth in recent years,
driven by factors such as increasing mechanization in agriculture,
rising demand for high-horsepower tractors, and government
initiatives supporting farm mechanization. The global tractor market
is expected to grow as agriculture continues to modernize and adapt
to the changing needs of the world's population.Asia Pacific tractor
market accounted for 40% of revenue share in 2022.
The global Farm Equipment market is valued at USD 169.18 billion.
The rising demand for food is a critical factor driving the industry’s
growth. With the global population growing rapidly, there is
increasing pressure to produce more food. Sowing, tilling,
harvesting, and processing are all operations that equipment can
complete faster and with fewer people which helps in increasing
total farm efficiency. The market is categorized into tractors,
harvesting equipment, sprayers, and others. The tractor segment
holds around 41% of the overall market. The Asia Pacific dominated
the agriculture equipment market with a share of 38.25% in 2022.
The industry is expected to grow at a CAGR of 7.3%.
Source: Arizton, Global Market Insights, Fortune Business
65
56
74
78
81
84
87
90
94
97
101
0
20
40
60
80
100
120
2020A2021A2022A2023A2024P2025P2026P2027P2028P2029P2030P
Global Tractor Market Size (USD Billions)
156
121
150
163169
181
195
209
224
241
258
277
0
50
100
150
200
250
300
2019A2020A2021A2022A2023A2024P2025P2026P2027P2028P2029P2030P
Global Farm Equipment Market Size (USD
Billions)
Indian Tractor and Farm Equipment Industry
The mid to long-term outlook for the Indian tractor industry is
positive. The domestic tractor sales registered a healthy growth of
12.2% in FY23 with normal monsoons and good water reservoir
levels. Several initiatives taken by the Government are driving
higher rural incomes. The demand from the agriculture segment in
India is expected to remain subdued due to below-normal and
erratic monsoons across the country affecting food crops and rural
income. The deficit rainfall in eastern and southern India, as well as
the flooding in certain parts of north India, could further add
inflationary pressures thereby impacting tractor sales in the short
term.
The tractor industry plays an important role in India’s agricultural
sector, contributing approximately 17% to the country’s GDP. India
is renowned as one of the largest and most diversified food
producers globally, making agriculture a cornerstone of its economy.
India has seen growth in farm income owing to an increase in
minimum support price which further led to an increase in the sale
of tractors. The market leader in tractors in India, Mahindra and
Mahindra, felt that the year would end with around 900,000 units in
sales compared to 945,000 units sold in 2022-23. M&M enjoys a
41.8% share of India’s tractor market. The Indian tractor industry is
expected to grow at a CAGR of 5.8% till 2030.
In India, the proportion of farmers to total workers fell from 59.1%
in 1991 to 54.6% in 2011 and39.4% in 2021. Farm mechanization is
essential for reaching the targeted output levels and timeliness in
the various farm operations due to the continuously rising
production and demand for agricultural products and output. A
shortage of workers is pushing the demand for farm equipment.
India can dominate the world market by leveraging its machine
tools.
Source: Care Edge, Daily Pioneer
5.5
4.94.7
8.07.8
7.1
9.0
8.4
9.5
9.0
9.5
10.1
10.7
11.3
11.9
12.6
13.4
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Indian Tractor Sales Forecast (Units in Lakhs)
1062
978 956 985
882
1005
202.3 172.2 138.5
202.8 206.9
279.5
0
500
1000
1500
2015 2016 2017 2018 2019 2020
Total Farm Machinery Exports and Imports
Total Farm Machinery ExportsTotal Farm Machinery Imports
53%
12.30%
7.50%
8.40%
4.80%
14%
Sources of Indian Imports in non Tractor Farm
Machinery
China
Thailand
Japan
Italy
USA
Others
Source: Ministry of Commerce
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
❑Financial Performance:
•Consolidated Revenue for Q1FY24 and Q2FY24 shows a 19% and 15%
increase and consolidated Profit is up by 60% and 6% respectively. The
60% includes 870 crores of monetization from services. Without that,
profit would have been up 21% for Q1FY24.
•The company is committed to delivering a return on equity (ROE) of
18% and a 15-20% growth in earnings per share (EPS). ROE for Q1FY24
and Q2FY24 is at 24% and 20% respectively.
•The focus is on enhancing margins and managing costs in a challenging
commodity environment.
•The company aims to balance reinvesting incremental margins into the
business with returning cash to shareholders, but the priority is
currently on growth and investments.
❑CAPEX:
•The company is investing in ICE to ensure robust products and
maintain leadership in the segment. Manufacturing capacities are
being made fungible to accommodate both EV and ICE production. The
company plans to partner with specialists in the charging infrastructure
space.
•The Production is at a rate of over 42,000. The company said they will
be at 49,000 by the end of the year. The company has ramped up the
production to 115,000 in a quarter. CAPEX has been triggered already.
❑Auto Business:
•Auto and farm sectors are capitalizing on market leadership, with
increased production and market share.
•Auto EBIT margins for Q1FY24 and Q2FY24 were 7.5% and 7.9%
respectively. Management is positive on pricing upside hence margins
might increase in the future.
•Auto production is up 28% in Q1FY24. Lots of issues around
semiconductors have been sorted and the company is operating at full
capacity now. Operating leverage for auto has driven auto results or
profit after tax up 2.2 times.
•Auto profit is greater than 1,000 crore and Auto total volumes were up
18% at 212,000 in Q2FY24. The revenue market share was at 19.9%.
•Auto business saw strong growth in SUV revenue, LCV market share,
and margins.
• The demand environment remains positive, with strong bookings for
models like Thar and Scorpio Classic. Very good growth in SUV
volumes, crossing 100,000 numbers in Q1FY24. The Booking pipeline
continues to be strong for Scorpio, Scorpio N, and Thar. LCV market
share is up 280 basis points, now at 49.6%.
•The LCV volumes have ramped up very well. This is on the back of the
success of the new Bolero Pik-Up or the Bolero Maxx Pik-Up portfolio
that's done very well. It gained market share for the company.
❑Growth Gems:
•The company has cleaned up its businesses and is working on firing on
all cylinders, with a focus on growth gems that have demonstrated
strong potential for growth.
•The company has seen strong growth in its growth gems, such as
Susten and Last Mile Mobility, and has attracted marquee investors.
The company has a robust review mechanism in place for monitoring
the performance of its subsidiaries and ensuring they achieve their
growth targets.
❑Cash:
•There is a lot of cash in the balance sheet, and this is after repaying
3,500 crores of debt as well. So, the company would have been close to
20,000 crores without debt repayment.
•Current gross debt is about 1,500 crores, which is the lowest in a while.
Quarterly Result Analysis – Q2FY24 and Q1FY24
❑Farm Business:
•The company expects an improved outlook for the farm business based
on positive factors such as monsoon rains, kharif sowing, and improved
farmer terms of trade.
•The company is focused on the farm machinery sector and expects to
achieve 40% growth in this segment.
•The company has seen muted exports in the tractor segment due to
industry degrowth in the US and challenges in South Asia.
•Core Tractor EBIT margins for Q1FY24 and Q2FY24 was 18.6% and
17.5% respectively. The launch of both OJA and Naya Swaraj is a big
milestone. This has been based on the Mitsubishi platform from Japan
and has been received very well in the market.
•Farm machinery Revenue for Q1FY24 and Q2FY24 shows a 24% and
35% increase respectively and PAT is up by 21% at 1198 crores in
Q1FY24 down by 7% in Q2FY24. Management is seeing huge growth
potential in farm machinery revenues and is estimating above 40%
growth by the end of the year.
❑EV Focus:
•The company believes that EV demand will increase and is focusing on
creating aspirational lifestyle products.
•The company plans to receive PLI for its EVs in the future.
•Electric three-wheelers will reach 74,000 units this year in terms of
volume with 61% market share and this is again an aggressive growth
plan for Auto. XUV 400 EV is more like a building block to build
organization capability and learning at this stage and the company is
not looking to push volume as they are launching it for the first time at
this scale.
❑Other Businesses:
•TechM faced weak demand and is undergoing a transformation plan to
improve performance.
•Mahindra Finance is on a strong track with improved asset quality and
profitability. The company has a disciplined approach to capital
allocation and will not increase its stake in RBL Bank in the near term.
•Hospitality is on a very good track, with very strong demand, and
significant growth plans for the business.
•Real estate demand continues to be healthy. Residential sales are up
for a strong launch pipeline. The business has publicly committed to a
target of going up to 8,000 crores of residential sales in F28.
❑Investments:
•Mahindra & Mahindra Limited has invested Rs. 417 crores in RBL, a
well-run bank in the financial services sector.
•The investment in RBL is a long-term strategy to understand banking
and potentially answer future questions about the company's
involvement in the sector. The investment in RBL provides a long-term
opportunity for future strategic benefits and an understanding of the
banking sector.
•The company is considering the possibility of Mahindra Finance
becoming a bank in the future, but this decision is not expected to
happen within the next two to three years.
❑Guidance:
•The tractor industry is expected to be flat for the year.
•Growth gems, including three-wheelers, real estate, and Susten, are on
track for significant growth. The company aims to produce as much as
required to meet the demand for EVs. Mahindra Electric Automotive
(MEAL) will be a separate company for EVs, and the company plans to
show an EV portfolio separately from ICE.
•The company is focused on meeting future growth targets and
maintaining profitability.
•Mahindra Finance is on track to improve its ROA and aims to become a
leader in its segments.
•TechM expects a solid turnaround in the next 3 years, with a focus on
getting back to market parity or leadership.
Source: Company Analysis
Mahindra & Mahindra
❑Financial Performance:
•Consolidated Revenue for Q1FY24 and Q2FY24 shows a 19% and 15%
increase and consolidated Profit is up by 60% and 6% respectively. The
60% includes 870 crores of monetization from services. Without that,
profit would have been up 21% for Q1FY24.
•The company is committed to delivering a return on equity (ROE) of
18% and a 15-20% growth in earnings per share (EPS). ROE for Q1FY24
and Q2FY24 is at 24% and 20% respectively.
•The focus is on enhancing margins and managing costs in a challenging
commodity environment.
•The company aims to balance reinvesting incremental margins into the
business with returning cash to shareholders, but the priority is
currently on growth and investments.
❑CAPEX:
•The company is investing in ICE to ensure robust products and
maintain leadership in the segment. Manufacturing capacities are
being made fungible to accommodate both EV and ICE production. The
company plans to partner with specialists in the charging infrastructure
space.
•The Production is at a rate of over 42,000. The company said they will
be at 49,000 by the end of the year. The company has ramped up the
production to 115,000 in a quarter. CAPEX has been triggered already.
❑Auto Business:
•Auto and farm sectors are capitalizing on market leadership, with
increased production and market share.
•Auto EBIT margins for Q1FY24 and Q2FY24 were 7.5% and 7.9%
respectively. Management is positive on pricing upside hence margins
might increase in the future.
•Auto production is up 28% in Q1FY24. Lots of issues around
semiconductors have been sorted and the company is operating at full
capacity now. Operating leverage for auto has driven auto results or
profit after tax up 2.2 times.
•Auto profit is greater than 1,000 crore and Auto total volumes were up
18% at 212,000 in Q2FY24. The revenue market share was at 19.9%.
•Auto business saw strong growth in SUV revenue, LCV market share,
and margins.
• The demand environment remains positive, with strong bookings for
models like Thar and Scorpio Classic. Very good growth in SUV
volumes, crossing 100,000 numbers in Q1FY24. The Booking pipeline
continues to be strong for Scorpio, Scorpio N, and Thar. LCV market
share is up 280 basis points, now at 49.6%.
•The LCV volumes have ramped up very well. This is on the back of the
success of the new Bolero Pik-Up or the Bolero Maxx Pik-Up portfolio
that's done very well. It gained market share for the company.
❑Growth Gems:
•The company has cleaned up its businesses and is working on firing on
all cylinders, with a focus on growth gems that have demonstrated
strong potential for growth.
•The company has seen strong growth in its growth gems, such as
Susten and Last Mile Mobility, and has attracted marquee investors.
The company has a robust review mechanism in place for monitoring
the performance of its subsidiaries and ensuring they achieve their
growth targets.
❑Cash:
•There is a lot of cash in the balance sheet, and this is after repaying
3,500 crores of debt as well. So, the company would have been close to
20,000 crores without debt repayment.
•Current gross debt is about 1,500 crores, which is the lowest in a while.
Quarterly Result Analysis – Q2FY24 and Q1FY24
❑Farm Business:
•The company expects an improved outlook for the farm business based
on positive factors such as monsoon rains, kharif sowing, and improved
farmer terms of trade.
•The company is focused on the farm machinery sector and expects to
achieve 40% growth in this segment.
•The company has seen muted exports in the tractor segment due to
industry degrowth in the US and challenges in South Asia.
•Core Tractor EBIT margins for Q1FY24 and Q2FY24 was 18.6% and
17.5% respectively. The launch of both OJA and Naya Swaraj is a big
milestone. This has been based on the Mitsubishi platform from Japan
and has been received very well in the market.
•Farm machinery Revenue for Q1FY24 and Q2FY24 shows a 24% and
35% increase respectively and PAT is up by 21% at 1198 crores in
Q1FY24 down by 7% in Q2FY24. Management is seeing huge growth
potential in farm machinery revenues and is estimating above 40%
growth by the end of the year.
❑EV Focus:
•The company believes that EV demand will increase and is focusing on
creating aspirational lifestyle products.
•The company plans to receive PLI for its EVs in the future.
•Electric three-wheelers will reach 74,000 units this year in terms of
volume with 61% market share and this is again an aggressive growth
plan for Auto. XUV 400 EV is more like a building block to build
organization capability and learning at this stage and the company is
not looking to push volume as they are launching it for the first time at
this scale.
❑Other Businesses:
•TechM faced weak demand and is undergoing a transformation plan to
improve performance.
•Mahindra Finance is on a strong track with improved asset quality and
profitability. The company has a disciplined approach to capital
allocation and will not increase its stake in RBL Bank in the near term.
•Hospitality is on a very good track, with very strong demand, and
significant growth plans for the business.
•Real estate demand continues to be healthy. Residential sales are up
for a strong launch pipeline. The business has publicly committed to a
target of going up to 8,000 crores of residential sales in F28.
❑Investments:
•Mahindra & Mahindra Limited has invested Rs. 417 crores in RBL, a
well-run bank in the financial services sector.
•The investment in RBL is a long-term strategy to understand banking
and potentially answer future questions about the company's
involvement in the sector. The investment in RBL provides a long-term
opportunity for future strategic benefits and an understanding of the
banking sector.
•The company is considering the possibility of Mahindra Finance
becoming a bank in the future, but this decision is not expected to
happen within the next two to three years.
❑Guidance:
•The tractor industry is expected to be flat for the year.
•Growth gems, including three-wheelers, real estate, and Susten, are on
track for significant growth. The company aims to produce as much as
required to meet the demand for EVs. Mahindra Electric Automotive
(MEAL) will be a separate company for EVs, and the company plans to
show an EV portfolio separately from ICE.
•The company is focused on meeting future growth targets and
maintaining profitability.
•Mahindra Finance is on track to improve its ROA and aims to become a
leader in its segments.
•TechM expects a solid turnaround in the next 3 years, with a focus on
getting back to market parity or leadership.
Source: Company Analysis
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Management Analysis: Below are the details and experience of Management
S.No.Name DesignationQualification Comments
1 Mr. Anand Mahindra Chairman Mr.Anand Mahindra studied filmmaking and architecture at Harvard
University and completed his MBA from Harvard Business School and
currently serving as a the Chairman of the Mahindra Group, Mahindra &
Mahindra Limited and Tech Mahindra Limited.He has served on several
influential bodies, including the Reserve Bank of India Board, UN Global
Compact Board, Global Board of Advisors of the Council on Foreign
Relations, and the World Bank Group’s Advisory Board for Doing Business.
Mr. Anand is very well potential or
qualified as chairman as he has vast
experience managing several
influential bodies
2 Dr. Anish Shah Group CEO, MDDr. Anish holds a PhD from Carnegie Mellon’s Tepper School of Business and
a Post-Graduate Diploma in Management from the Indian Institute of
Management, Ahmedabad currently serving as the President of FICCI,
member of the UK Investment Council, Chair of the Automotive Governors
Council (World Economic Forum), co-chair of the India Alliance of CEOs for
Climate Change (World Economic Forum) and co-Chair of the India-Australia
CEO Council. He was President and CEO of GE Capital India from 2009-14He
has also led Bank of America's US Debit Products business and worked with
Bain & Company in Boston and Citibank in Mumbai.
Under Dr. Anish’s leadership, the
Group is on the rise with exponential
growth across multiple businesses and
prudent capital allocation. He is the
custodian of Mahindra’s Rise
philosophy. He is well-qualified and
has experience in managing renowned
entities.
3 Mr. Rajesh Jejurikar Executive
Director, CEO
Mr. Rajesh is an Economics & Statistics graduate of Mumbai University, and
is also an alumnus of S.P. Jain Institute of Management & Research,
completed his Master’s in Marketing in 1986. He was awarded with the
British Chevening Scholarship to study at the Manchester Business School,
UK, and later attended the Advanced Management Program at The Wharton
School, University of Pennsylvania currently serving as the Governing Council
of S.P Jain Institute of Management and Research, represented the Tractor
Manufacturers Association (TMA) in India as its President on the National
Council of the Confederation of Indian Industry (CII) in 2016, 2017. He joined
Mahindra in 2000 as Vice President – Marketing for the Automotive Sector.
Mr. Rajesh is having vast experience in
his field and appropriately holds his
position in the company.
4 Mr. Manoj Bhat Group CFO Mr. Manoj has a Bachelor’s in Technology degree from IIT Mumbai and a
Postgraduate Diploma in Management (PGDM) from IIM Bangalore. He was
the Chief Financial Officer at Tech Mahindra, responsible for the Finance and
Secretarial functions across 160 subsidiaries and over 90 countries. In his 15
years at Tech Mahindra , he has had responsibilities for various functions like
Finance, Corporate Planning & Development, M&A and Strategy
Mr. Manoj is having vast experience in
his field and appropriately holds his
position in the company.
5 Mr. Veejay Ram Nakra President, Auto
sector
Mr.Veejay is a graduate in mechanical engineering from MIT, Manipal & a
full-time PGDBA in Marketing from NMIMS, Mumbai currently serving as
President for the Automotive Division of Mahindra & Mahindra and also a
member of Mahindra’s Group Executive Board, Director on the boards of
Mahindra Electric Mobility and NBS international. Veejay has held various
strategic positions over the past 25 years at M&M. Early in his career, he was
a part of the core team that developed and launched the Scorpio. He is also
a member of the SIAM Executive Committee.
Mr. Veejay has reached this level from
bottom level in the company.
6 Mr. Hemant Sikka President, Farm
sector
Mr. Hemant is the President of the Farm Equipment Sector of Mahindra &
Mahindra Ltd and a member of the Group Executive Board. He also oversees
the PowerolGenset Business. Hemant also serves on the boards of several
group companies.
Mr. Hemant is having vast experience
in his field and appropriately holds his
position in the company.
7 Mr. Naveen Raju Executive Vice
President, Group
Legal
Naveen graduated from the National Law School, Bangalore currently is
Director on the Board of Mahindra Automotive North America Inc.,
Mahindra Logistics Limited and its affiliate companies. He is on the global
Board of Directors at the Association of Corporate Counsel, which is the
world’s largest in-house counsel community with over 40,000 members
across 85 countries. He is also co-chair of the legal affairs and IPR committee
at the Bombay Chambers of Commerce and Industry.
His vast experience in legal matters
helps create greater integrate legal
function with group businesses, create
core internal competencies and
promote greater adoption of
technology.
8 Mr. Ruzbeh Irani President, Group
HR
Mr. Ruzbeh completed his Bachelor’s degree in Commerce from Bombay
University in 1983. He went on to receive his Masters in Management
Studies from the Jamnalal Bajaj Institute of Management Studies, Mumbai in
1985. He is an alumnus of the Advanced Management Program at the
Harvard Business School currently serving as the President of group Human
Resources since April 2020. He is also responsible for Corporate Social
Responsibility and Corporate Infrastructure Services. He is a member of
Mahindra’s Group Executive Board.
Mr. Ruzbeh is having vast experience
in his field and appropriately holds his
position in the company.
9 Mr. Amarjyoti Barua EVP, Group
Strategy
Mr. Amar Barua holds a Bachelor’s degree in economics and a Master’s
degree in Business Administration (MBA). He joined Mahindra recently in
May 2023 as Executive Vice President - Group Strategy. Amar Barua is a
member of the Group Executive Board. Amar was the Chief Financial Officer
(CFO) for GE’s Power Conversion business. He also was the CFO for GE
Mining, Financial Planning & Analysis Leader for GE in India and Executive
Audit Manager at GE’s Corporate Audit Staff
Mr. Amar is having vast experience in
his field and appropriately holds his
position in the company.
Mahindra & Mahindra
Management Analysis: Below are the details and experience of Management
S.No.Name DesignationQualification Comments
1 Mr. Anand Mahindra Chairman Mr.Anand Mahindra studied filmmaking and architecture at Harvard
University and completed his MBA from Harvard Business School and
currently serving as a the Chairman of the Mahindra Group, Mahindra &
Mahindra Limited and Tech Mahindra Limited.He has served on several
influential bodies, including the Reserve Bank of India Board, UN Global
Compact Board, Global Board of Advisors of the Council on Foreign
Relations, and the World Bank Group’s Advisory Board for Doing Business.
Mr. Anand is very well potential or
qualified as chairman as he has vast
experience managing several
influential bodies
2 Dr. Anish Shah Group CEO, MDDr. Anish holds a PhD from Carnegie Mellon’s Tepper School of Business and
a Post-Graduate Diploma in Management from the Indian Institute of
Management, Ahmedabad currently serving as the President of FICCI,
member of the UK Investment Council, Chair of the Automotive Governors
Council (World Economic Forum), co-chair of the India Alliance of CEOs for
Climate Change (World Economic Forum) and co-Chair of the India-Australia
CEO Council. He was President and CEO of GE Capital India from 2009-14He
has also led Bank of America's US Debit Products business and worked with
Bain & Company in Boston and Citibank in Mumbai.
Under Dr. Anish’s leadership, the
Group is on the rise with exponential
growth across multiple businesses and
prudent capital allocation. He is the
custodian of Mahindra’s Rise
philosophy. He is well-qualified and
has experience in managing renowned
entities.
3 Mr. Rajesh Jejurikar Executive
Director, CEO
Mr. Rajesh is an Economics & Statistics graduate of Mumbai University, and
is also an alumnus of S.P. Jain Institute of Management & Research,
completed his Master’s in Marketing in 1986. He was awarded with the
British Chevening Scholarship to study at the Manchester Business School,
UK, and later attended the Advanced Management Program at The Wharton
School, University of Pennsylvania currently serving as the Governing Council
of S.P Jain Institute of Management and Research, represented the Tractor
Manufacturers Association (TMA) in India as its President on the National
Council of the Confederation of Indian Industry (CII) in 2016, 2017. He joined
Mahindra in 2000 as Vice President – Marketing for the Automotive Sector.
Mr. Rajesh is having vast experience in
his field and appropriately holds his
position in the company.
4 Mr. Manoj Bhat Group CFO Mr. Manoj has a Bachelor’s in Technology degree from IIT Mumbai and a
Postgraduate Diploma in Management (PGDM) from IIM Bangalore. He was
the Chief Financial Officer at Tech Mahindra, responsible for the Finance and
Secretarial functions across 160 subsidiaries and over 90 countries. In his 15
years at Tech Mahindra , he has had responsibilities for various functions like
Finance, Corporate Planning & Development, M&A and Strategy
Mr. Manoj is having vast experience in
his field and appropriately holds his
position in the company.
5 Mr. Veejay Ram Nakra President, Auto
sector
Mr.Veejay is a graduate in mechanical engineering from MIT, Manipal & a
full-time PGDBA in Marketing from NMIMS, Mumbai currently serving as
President for the Automotive Division of Mahindra & Mahindra and also a
member of Mahindra’s Group Executive Board, Director on the boards of
Mahindra Electric Mobility and NBS international. Veejay has held various
strategic positions over the past 25 years at M&M. Early in his career, he was
a part of the core team that developed and launched the Scorpio. He is also
a member of the SIAM Executive Committee.
Mr. Veejay has reached this level from
bottom level in the company.
6 Mr. Hemant Sikka President, Farm
sector
Mr. Hemant is the President of the Farm Equipment Sector of Mahindra &
Mahindra Ltd and a member of the Group Executive Board. He also oversees
the PowerolGenset Business. Hemant also serves on the boards of several
group companies.
Mr. Hemant is having vast experience
in his field and appropriately holds his
position in the company.
7 Mr. Naveen Raju Executive Vice
President, Group
Legal
Naveen graduated from the National Law School, Bangalore currently is
Director on the Board of Mahindra Automotive North America Inc.,
Mahindra Logistics Limited and its affiliate companies. He is on the global
Board of Directors at the Association of Corporate Counsel, which is the
world’s largest in-house counsel community with over 40,000 members
across 85 countries. He is also co-chair of the legal affairs and IPR committee
at the Bombay Chambers of Commerce and Industry.
His vast experience in legal matters
helps create greater integrate legal
function with group businesses, create
core internal competencies and
promote greater adoption of
technology.
8 Mr. Ruzbeh Irani President, Group
HR
Mr. Ruzbeh completed his Bachelor’s degree in Commerce from Bombay
University in 1983. He went on to receive his Masters in Management
Studies from the Jamnalal Bajaj Institute of Management Studies, Mumbai in
1985. He is an alumnus of the Advanced Management Program at the
Harvard Business School currently serving as the President of group Human
Resources since April 2020. He is also responsible for Corporate Social
Responsibility and Corporate Infrastructure Services. He is a member of
Mahindra’s Group Executive Board.
Mr. Ruzbeh is having vast experience
in his field and appropriately holds his
position in the company.
9 Mr. Amarjyoti Barua EVP, Group
Strategy
Mr. Amar Barua holds a Bachelor’s degree in economics and a Master’s
degree in Business Administration (MBA). He joined Mahindra recently in
May 2023 as Executive Vice President - Group Strategy. Amar Barua is a
member of the Group Executive Board. Amar was the Chief Financial Officer
(CFO) for GE’s Power Conversion business. He also was the CFO for GE
Mining, Financial Planning & Analysis Leader for GE in India and Executive
Audit Manager at GE’s Corporate Audit Staff
Mr. Amar is having vast experience in
his field and appropriately holds his
position in the company.
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Management Analysis:
S.No.Name Designation Qualification Comments
11 Mr. Puneet Renjhen EVP, Group
Partnerships &
Alliances
Mr. Puneet holds an MBA from the Indian School of Business in Hyderabad and has
completed management courses at the London Business School in Leadership,
Strategy, and Mergers and Acquisitions currently serves as Executive Vice President of
Partnerships & Alliances and a member of the Group Executive Board. In his role,
Puneet serves as a Board of Director for Mahindra Susten, New Delhi Centre For Sight
Limited & Mahindra CIE Automotive Ltd. Previously, Puneet spent c. 20 years in
investment banking, primarily with Avendus Capital, Citi, and Standard Chartered and
worked in their London, Singapore and Mumbai offices.
Mr. Puneet is having
vast experience in
his field and
appropriately holds
his position in the
company.
12 Mr. R. Velusamy President,
Automotive
Technology &
Product
Development
Mr. Velu completed his B.Sc., from the University of Madras & B-Tech., in Automobile
Engg at Anna University, Chennai. He has completed the Advance Management
Program at Wharton Business School and the Mahindra Universe program at Harvard
University. He also underwent the Global Program for Management Development at
Michigan Ross School of Business and currently heads the Component Development &
Material Management Division (CDMM) for the Auto Sector. He is the Chairperson &
Board of Directors for Mahindra North America Technical Centre (MNATC) & Director
on the Board of Automobile Pininfarina GMBH. Under his leadership, Mahindra
marked a new beginning for Mahindra and SUV Segment in India.
Mr. Velu is having
vast experience in
his field and
appropriately holds
his position in the
company.
13 Ms. Asha Kharga EVP, Group
Customer & Brand
Ms. Asha is a commerce graduate from Narsee Monjee and an MBA in Marketing from
Mumbai University currently serves as the Chief Customer & Brand Officer and
Member of the Group Executive Board of the Mahindra Group, Chairperson of the
FICCI Committee for Women Empowerment in 2024 and chairs the Mahindra Group's
Diversity Council. She is a Director on the Board of Mahindra Holdings Pvt. Ltd as well
as the publicly listed Mahindra Lifespaces Developers. She also served as Chairperson
for Mahindra Racing UK, for 2 years.
Ms. Asha is having
vast experience in
his field and
appropriately holds
his position in the
company.
Independent Directors
S.No.Name Designation Qualification Comments
1 Mr. Vikram Singh Mehta Lead Independent
Director
Mr.Vikram completed his Bachelor’s Degree in Mathematics (Hons.) from St. Stephens
College, Delhi University. He has a Master’s Degree in Politics and Economics (Hons.)
from Magdalen College, Oxford University, UK and a Master’s Degree in Energy
Economics from the Fletcher School of Law and Diplomacy, Tufts University in USA.
Mr. Vikram is the Ex-Chairman of the Shell Group of Companies in India.
Mr. Vikram is very
well qualified as an
Independent
Director in the
company.
2 Ms. Shikha Sharma Independent
Director
Ms. Shikha Sharma holds a Post Graduate Diploma in Management from IIM,
Ahmedabad, a Post Graduate Diploma in Software Technology from National Center
for Software Technology and a B.A. (Hons.) in Economics. Shikha was the Managing
Director & CEO of Axis Bank, India's third largest private sector bank, from June, 2009
to December 2018.
Ms. Sikha is very well
qualified as an
Independent
Director in the
company.
3 Mr. Haigreve Khaitan Independent
Director
Mr.Khaitan has done his LL.B from South Kolkata Law College currently serving as a
Partner of Khaitan & Co., advises a range of large Indian conglomerates and
multinational clients in various business sectors including infrastructure, power,
telecom, automobiles, steel, software and information technology, retail, etc. He has
rich experience in all aspects of M&A due diligence, structuring, documentation
involving listed companies, cross-border transactions.
Mr. Khaitan is very
well qualified as an
Independent
Director in the
company.
4 Ms. Nisaba Godrej Independent
Director
Ms. Nisaba has a B.Sc degree from The Wharton School at the University of
Pennsylvania and an MBA from Harvard Business School currently serving as
Chairperson and Managing Director of Godrej Consumer Products, is on the Board of
Godrej Agrovet, VIP Industries, and is the Chairperson of Teach For India.
Ms. Nisaba is very
well qualified as an
Independent
Director in the
company.
5 Mr. Muthiah Murugappan Independent
Director
Mr. Muthiah Murugappan (Muthu), has completed his MBA from London Business
School. He is a B.Sc. Management Sciences from the University of Warwick (Warwick
Business School) currently been working with startups and Micro VC funds (as an angel
investor / LP) in the areas of SaaS, e-commerce, Deep Tech & Consumer goods. He is
also a Nominee Director on Algavista Greentech Private Limited. He is also a Director
of US Nutraceuticals Inc. and Alimtec S.A.
Mr. Muthiah is very
well qualified as an
Independent
Director in the
company.
6 Mr. TN Manoharan Independent
Director
Mr. TN Manoharan is a law graduate and a fellow member of The Institute of
Chartered Accountants of India. He also holds a Masters degree in Commerce
currently serving as a Non-Executive Chairman on the Board of Canara Bank, an
Independent Director on the Board of Directors of Tech Mahindra Limited and was
nominated by the Government of India to the Board of Satyam Computer Services
Limited where he made significant contribution towards the revival of the erstwhile
Mahindra Satyam within a short span of time.
Mr. Manoharan
expertise will help
the group as he is
well qualified as he
is serving renowned
entities across India
Mahindra & Mahindra
Management Analysis:
S.No.Name Designation Qualification Comments
11 Mr. Puneet Renjhen EVP, Group
Partnerships &
Alliances
Mr. Puneet holds an MBA from the Indian School of Business in Hyderabad and has
completed management courses at the London Business School in Leadership,
Strategy, and Mergers and Acquisitions currently serves as Executive Vice President of
Partnerships & Alliances and a member of the Group Executive Board. In his role,
Puneet serves as a Board of Director for Mahindra Susten, New Delhi Centre For Sight
Limited & Mahindra CIE Automotive Ltd. Previously, Puneet spent c. 20 years in
investment banking, primarily with Avendus Capital, Citi, and Standard Chartered and
worked in their London, Singapore and Mumbai offices.
Mr. Puneet is having
vast experience in
his field and
appropriately holds
his position in the
company.
12 Mr. R. Velusamy President,
Automotive
Technology &
Product
Development
Mr. Velu completed his B.Sc., from the University of Madras & B-Tech., in Automobile
Engg at Anna University, Chennai. He has completed the Advance Management
Program at Wharton Business School and the Mahindra Universe program at Harvard
University. He also underwent the Global Program for Management Development at
Michigan Ross School of Business and currently heads the Component Development &
Material Management Division (CDMM) for the Auto Sector. He is the Chairperson &
Board of Directors for Mahindra North America Technical Centre (MNATC) & Director
on the Board of Automobile Pininfarina GMBH. Under his leadership, Mahindra
marked a new beginning for Mahindra and SUV Segment in India.
Mr. Velu is having
vast experience in
his field and
appropriately holds
his position in the
company.
13 Ms. Asha Kharga EVP, Group
Customer & Brand
Ms. Asha is a commerce graduate from Narsee Monjee and an MBA in Marketing from
Mumbai University currently serves as the Chief Customer & Brand Officer and
Member of the Group Executive Board of the Mahindra Group, Chairperson of the
FICCI Committee for Women Empowerment in 2024 and chairs the Mahindra Group's
Diversity Council. She is a Director on the Board of Mahindra Holdings Pvt. Ltd as well
as the publicly listed Mahindra Lifespaces Developers. She also served as Chairperson
for Mahindra Racing UK, for 2 years.
Ms. Asha is having
vast experience in
his field and
appropriately holds
his position in the
company.
Independent Directors
S.No.Name Designation Qualification Comments
1 Mr. Vikram Singh Mehta Lead Independent
Director
Mr.Vikram completed his Bachelor’s Degree in Mathematics (Hons.) from St. Stephens
College, Delhi University. He has a Master’s Degree in Politics and Economics (Hons.)
from Magdalen College, Oxford University, UK and a Master’s Degree in Energy
Economics from the Fletcher School of Law and Diplomacy, Tufts University in USA.
Mr. Vikram is the Ex-Chairman of the Shell Group of Companies in India.
Mr. Vikram is very
well qualified as an
Independent
Director in the
company.
2 Ms. Shikha Sharma Independent
Director
Ms. Shikha Sharma holds a Post Graduate Diploma in Management from IIM,
Ahmedabad, a Post Graduate Diploma in Software Technology from National Center
for Software Technology and a B.A. (Hons.) in Economics. Shikha was the Managing
Director & CEO of Axis Bank, India's third largest private sector bank, from June, 2009
to December 2018.
Ms. Sikha is very well
qualified as an
Independent
Director in the
company.
3 Mr. Haigreve Khaitan Independent
Director
Mr.Khaitan has done his LL.B from South Kolkata Law College currently serving as a
Partner of Khaitan & Co., advises a range of large Indian conglomerates and
multinational clients in various business sectors including infrastructure, power,
telecom, automobiles, steel, software and information technology, retail, etc. He has
rich experience in all aspects of M&A due diligence, structuring, documentation
involving listed companies, cross-border transactions.
Mr. Khaitan is very
well qualified as an
Independent
Director in the
company.
4 Ms. Nisaba Godrej Independent
Director
Ms. Nisaba has a B.Sc degree from The Wharton School at the University of
Pennsylvania and an MBA from Harvard Business School currently serving as
Chairperson and Managing Director of Godrej Consumer Products, is on the Board of
Godrej Agrovet, VIP Industries, and is the Chairperson of Teach For India.
Ms. Nisaba is very
well qualified as an
Independent
Director in the
company.
5 Mr. Muthiah Murugappan Independent
Director
Mr. Muthiah Murugappan (Muthu), has completed his MBA from London Business
School. He is a B.Sc. Management Sciences from the University of Warwick (Warwick
Business School) currently been working with startups and Micro VC funds (as an angel
investor / LP) in the areas of SaaS, e-commerce, Deep Tech & Consumer goods. He is
also a Nominee Director on Algavista Greentech Private Limited. He is also a Director
of US Nutraceuticals Inc. and Alimtec S.A.
Mr. Muthiah is very
well qualified as an
Independent
Director in the
company.
6 Mr. TN Manoharan Independent
Director
Mr. TN Manoharan is a law graduate and a fellow member of The Institute of
Chartered Accountants of India. He also holds a Masters degree in Commerce
currently serving as a Non-Executive Chairman on the Board of Canara Bank, an
Independent Director on the Board of Directors of Tech Mahindra Limited and was
nominated by the Government of India to the Board of Satyam Computer Services
Limited where he made significant contribution towards the revival of the erstwhile
Mahindra Satyam within a short span of time.
Mr. Manoharan
expertise will help
the group as he is
well qualified as he
is serving renowned
entities across India
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Commentary:
The company has strong management with vast experience and technical expertise. Further, the independent directors come from
diversified industries and include dignified professions. Basis on the screening of publicly available data, we do not find any political
connections of leadership and independent directors with national and regional political parties. Further, we do not find any conflict of
interest between Independent directors with the company, as reported.
The current Managing Director of the company Dr. Anish Shah joined the company in 2014 as President of Group Special Projects and
was gradually promoted to his current designation in April 2021 after becoming Deputy Managing Director and Group CFO. Since his
joining, the top and bottom line of the company have grown significantly. The other members of the management were hired and
promoted as per their competencies and technical expertise. While MR. Anish has been managing the business for the last 3 years, and
most of the members of the leadership team have been associated with the company for more than 10 years.
Shareholding Pattern
The company has the majority of its shareholding with Institutions and Public to a total of 71.6%. As on March 31, 2024 Promoters are
holding 18.6%, FIIs are holding 41.8%, DIIs are holding 26.1%, Government and Public holding is 0.1% and 9.7% respectively. Promoter’s
pledge remained unchanged at 0.06% of holdings in Mar 2024 qtr. Promoter’s shareholding has been reduced from 26.7% in March 2017
to 18.6% in March 2024. Though there is a reduction in promoter holding, it is not significant to conclude that management is not
confident in the business or management’s strategic exit from the business.
The yearly and quarterly shareholding pattern of the company is as follows:
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Promoters 26.7% 21.7% 21.5% 19.9% 19.5% 19.5% 19.4% 18.6%
FIIs 36.4% 33.6% 31.3% 33.9% 38.9% 37.3% 39.2% 41.8%
DIIs 21.1% 21.3% 23.4% 28.1% 27.4% 28.8% 27.7% 26.1%
Government 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1%
Public 15.7% 18.3% 18.9% 13.6% 9.9% 10.4% 9.8% 9.7%
Others 0.0% 4.9% 4.7% 4.4% 4.1% 4.0% 3.9% 3.8%
19.47%19.45%19.38%19.39%19.37%19.37%19.34%19.32%
18.59%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Mar-24
Quarterly Promoter Holding vs Pledge
Promoter Holding% of Promoter Holding Pledged
40.1%
38.9%
38.7%
37.3%
37.9%
38.3%
39.2%39.2%
40.1%40.3%
40.9%
41.8%
35.0%
36.0%
37.0%
38.0%
39.0%
40.0%
41.0%
42.0%
43.0%
Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Mar-24
Quaterly FIIs Holding Pattern
Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Mar-24
Promoters 19.5%19.5%19.5%19.5%19.5%19.4%19.4%19.4% 19.4%19.3%19.3% 18.6%
FIIs 40.1%38.9%38.7%37.3%37.9%38.3%39.2%39.2% 40.1%40.3%40.9% 41.8%
DIIs 26.1%27.1%27.8%28.8%28.9%28.5%27.7%27.7% 26.9%26.8%26.3% 26.1%
Government 0.1% 0.1%0.1% 0.1%0.1%0.1% 0.1% 0.1% 0.1%0.1% 0.1% 0.1%
Public 10.2%10.4%10.0%10.4%9.7%9.8% 9.8% 9.8% 9.7%9.7% 9.7% 9.7%
Others 4.1% 4.1%4.0% 4.0%4.0%3.9% 3.9% 3.9% 3.8%3.8% 3.8% 3.8%
Source: Company Analysis, Trendlyne, BSE
Mahindra & Mahindra
Commentary:
The company has strong management with vast experience and technical expertise. Further, the independent directors come from
diversified industries and include dignified professions. Basis on the screening of publicly available data, we do not find any political
connections of leadership and independent directors with national and regional political parties. Further, we do not find any conflict of
interest between Independent directors with the company, as reported.
The current Managing Director of the company Dr. Anish Shah joined the company in 2014 as President of Group Special Projects and
was gradually promoted to his current designation in April 2021 after becoming Deputy Managing Director and Group CFO. Since his
joining, the top and bottom line of the company have grown significantly. The other members of the management were hired and
promoted as per their competencies and technical expertise. While MR. Anish has been managing the business for the last 3 years, and
most of the members of the leadership team have been associated with the company for more than 10 years.
Shareholding Pattern
The company has the majority of its shareholding with Institutions and Public to a total of 71.6%. As on March 31, 2024 Promoters are
holding 18.6%, FIIs are holding 41.8%, DIIs are holding 26.1%, Government and Public holding is 0.1% and 9.7% respectively. Promoter’s
pledge remained unchanged at 0.06% of holdings in Mar 2024 qtr. Promoter’s shareholding has been reduced from 26.7% in March 2017
to 18.6% in March 2024. Though there is a reduction in promoter holding, it is not significant to conclude that management is not
confident in the business or management’s strategic exit from the business.
The yearly and quarterly shareholding pattern of the company is as follows:
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Promoters 26.7% 21.7% 21.5% 19.9% 19.5% 19.5% 19.4% 18.6%
FIIs 36.4% 33.6% 31.3% 33.9% 38.9% 37.3% 39.2% 41.8%
DIIs 21.1% 21.3% 23.4% 28.1% 27.4% 28.8% 27.7% 26.1%
Government 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1%
Public 15.7% 18.3% 18.9% 13.6% 9.9% 10.4% 9.8% 9.7%
Others 0.0% 4.9% 4.7% 4.4% 4.1% 4.0% 3.9% 3.8%
19.47%19.45%19.38%19.39%19.37%19.37%19.34%19.32%
18.59%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Mar-24
Quarterly Promoter Holding vs Pledge
Promoter Holding% of Promoter Holding Pledged
40.1%
38.9%
38.7%
37.3%
37.9%
38.3%
39.2%39.2%
40.1%40.3%
40.9%
41.8%
35.0%
36.0%
37.0%
38.0%
39.0%
40.0%
41.0%
42.0%
43.0%
Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Mar-24
Quaterly FIIs Holding Pattern
Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Mar-24
Promoters 19.5%19.5%19.5%19.5%19.5%19.4%19.4%19.4% 19.4%19.3%19.3% 18.6%
FIIs 40.1%38.9%38.7%37.3%37.9%38.3%39.2%39.2% 40.1%40.3%40.9% 41.8%
DIIs 26.1%27.1%27.8%28.8%28.9%28.5%27.7%27.7% 26.9%26.8%26.3% 26.1%
Government 0.1% 0.1%0.1% 0.1%0.1%0.1% 0.1% 0.1% 0.1%0.1% 0.1% 0.1%
Public 10.2%10.4%10.0%10.4%9.7%9.8% 9.8% 9.8% 9.7%9.7% 9.7% 9.7%
Others 4.1% 4.1%4.0% 4.0%4.0%3.9% 3.9% 3.9% 3.8%3.8% 3.8% 3.8%
Source: Company Analysis, Trendlyne, BSE
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Commentary:
Management Remuneration
During FY23, the company incurred managerial remuneration of INR 36.9 Crores as against INR 28.8 Crores in FY22 (21.95% increase on a
YoY basis).
The median ratio of remuneration of KMP with median employee salary is 90.2x whereas the median ratio for the same for Maruti Suzuki
and Tata Motors stood at 8.6x and 53.7x respectively.
We have observed that the growth in KMP remuneration is in line with revenue growth. The revenue grew at 3.7% CAGR over the last 5
years and 27.8% CAGR over the last 3 years. The KMP remuneration has increased by 19.1% CAGR over the last 5 years and 17.6% CAGR
over the last 3 years.
DesignationRatio of Remuneration with
median employee salary
FY23 FY22 Growth in
Remuneration
Sales Growth
YoY%
Net Profit
Growth YoY%
Dr. Anish Shah MD and CEO 161.1x 16.44 11.89 38.3% 34.5% 56.8%
Mr. Rajesh Jejurikar ED and CEO 124.9x 12.74 9.73 30.9% 34.5% 56.8%
Mr. Manoj Bhat Group CFO 55.5x 5.67 4.66 21.7% 34.5% 56.8%
Mr. Narayan ShankarCompany Secretary 20x 2.05 2.58 -20.5% 34.5% 56.8%
Total 36.9 28.86 27.9% 34.5% 56.8%
Year FY19 FY20 FY21 FY22 FY23
Sales (in Cr) 104721 75382 74278 90171 121269
Revenue YoY growth% -28.0% -1.5% 21.4% 34.5%
KMP (in Cr) 18.35 18.75 26.68 28.8 36.9
KMP YoY growth% 2.2% 42.3% 7.9% 28.1%
Board Efficiency
The Board of Directors (BOD) has adequate representation of independent directors, industry experts, and finance experts as required by
the statue.
The efficiency of BOD can be gauged by their contribution to various important meetings held in FY23. The details are as below:
Name of Directors No. of Board meetings held
during the year
No. of Board meetings Attended% of attendance of a Director
Mr. Anand G. Mahindra 9 9 100%
Dr. Anish Shah 9 9 100%
Mr. Rajesh Jejurikar 9 8 89%
Dr. Vishakha N. Desai 9 8 89%
Mr. Vikram Singh Mehta 9 9 100%
Mr. T. N. Manoharan 9 9 100%
Mr. Vijay Kumar Sharma 9 8 89%
Mr. Haigreve Khaitan 9 9 100%
Ms. Shikha Sharma 9 9 100%
Mr. CP Gurnani 9 9 100%
Ms. Nisaba Godrej 9 8 89%
Mr. Muthiah Murugappan 9 9 100%
During FY23, the company has been supervised by the BOD efficiently as the majority of members of the board have attended all the
board meetings which shows good participation by the board in key matters discussed during the year and helped the company in
making effective decisions.
Mahindra & Mahindra
Commentary:
Management Remuneration
During FY23, the company incurred managerial remuneration of INR 36.9 Crores as against INR 28.8 Crores in FY22 (21.95% increase on a
YoY basis).
The median ratio of remuneration of KMP with median employee salary is 90.2x whereas the median ratio for the same for Maruti Suzuki
and Tata Motors stood at 8.6x and 53.7x respectively.
We have observed that the growth in KMP remuneration is in line with revenue growth. The revenue grew at 3.7% CAGR over the last 5
years and 27.8% CAGR over the last 3 years. The KMP remuneration has increased by 19.1% CAGR over the last 5 years and 17.6% CAGR
over the last 3 years.
DesignationRatio of Remuneration with
median employee salary
FY23 FY22 Growth in
Remuneration
Sales Growth
YoY%
Net Profit
Growth YoY%
Dr. Anish Shah MD and CEO 161.1x 16.44 11.89 38.3% 34.5% 56.8%
Mr. Rajesh Jejurikar ED and CEO 124.9x 12.74 9.73 30.9% 34.5% 56.8%
Mr. Manoj Bhat Group CFO 55.5x 5.67 4.66 21.7% 34.5% 56.8%
Mr. Narayan ShankarCompany Secretary 20x 2.05 2.58 -20.5% 34.5% 56.8%
Total 36.9 28.86 27.9% 34.5% 56.8%
Year FY19 FY20 FY21 FY22 FY23
Sales (in Cr) 104721 75382 74278 90171 121269
Revenue YoY growth% -28.0% -1.5% 21.4% 34.5%
KMP (in Cr) 18.35 18.75 26.68 28.8 36.9
KMP YoY growth% 2.2% 42.3% 7.9% 28.1%
Board Efficiency
The Board of Directors (BOD) has adequate representation of independent directors, industry experts, and finance experts as required by
the statue.
The efficiency of BOD can be gauged by their contribution to various important meetings held in FY23. The details are as below:
Name of Directors No. of Board meetings held
during the year
No. of Board meetings Attended% of attendance of a Director
Mr. Anand G. Mahindra 9 9 100%
Dr. Anish Shah 9 9 100%
Mr. Rajesh Jejurikar 9 8 89%
Dr. Vishakha N. Desai 9 8 89%
Mr. Vikram Singh Mehta 9 9 100%
Mr. T. N. Manoharan 9 9 100%
Mr. Vijay Kumar Sharma 9 8 89%
Mr. Haigreve Khaitan 9 9 100%
Ms. Shikha Sharma 9 9 100%
Mr. CP Gurnani 9 9 100%
Ms. Nisaba Godrej 9 8 89%
Mr. Muthiah Murugappan 9 9 100%
During FY23, the company has been supervised by the BOD efficiently as the majority of members of the board have attended all the
board meetings which shows good participation by the board in key matters discussed during the year and helped the company in
making effective decisions.
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Quarterly Snapshot
Annual Snapshot
Particulars (INR Crores) FY23Q1 FY23Q2 FY23Q3 FY23Q4 FY24Q1 FY24Q2 FY24Q3
Net Revenues 28414 29870 30621 32456 33892 34436 35299
Total Expenditure 24016 24802 25368 26798 27642 28706 29075
EBITDA 4398 5068 5253 5658 6250 5730 6224
EBITDA Margins (%) 15% 17% 17% 17% 18% 17% 18%
Depreciation 960 1092 1110 1194 1128 1139 1123
EBIT 3438 3976 4143 4464 5122 4591 5101
Interest 1219 1382 1596 1634 1719 1835 1945
Other Income 675 1348 1184 662 1065 812 756
Profit before Tax 2894 3942 3731 3492 4468 3568 3912
Tax Rate (%) 18% 23% 20% 14% 18% 30% 24%
Net Profit 2373.08 3035.34 2984.83003.12 3663.76 2497.62973.12
Net Profit Margins (%) 8% 10% 10% 9% 11% 7% 8%
Particulars (INR Crores) FY19 FY20 FY21 FY22 FY23 FY24E FY25E
Net Revenues 104,721 75,382 74,278 90,171121,269 136,172146,157
YoY Change % 13.7% -28.0% -1.5% 21.4% 34.5% 12.3% 7.3%
Total Expenses 89,514 65,224 62,791 75,488100,983 111,790119,548
Total Expenses % Sales 85.5% 86.5% 84.5% 83.7% 83.3% 82.1% 81.8%
EBITDA 15,207 10,158 11,487 14,683 20,286 24,382 26,609
EBITDA Margins (%) 14.5% 13.5% 15.5% 16.3% 16.7% 17.9% 18.2%
Depreciation 3,991 3,367 3,378 3,508 4,357 4,712 5,374
EBIT 11,216 6,791 8,109 11,175 15,929 19,670 21,235
EBIT Margins (%) 10.7% 9.0% 10.9% 12.4% 13.1% 14.4% 14.5%
Interest Expenses 5,021 6,021 6,102 5,018 5,830 6,393 6,611
Other Income 2,676 885 1,152 3,204 3,961 2345 2318
Profit before Tax 8,871 1,655 3,159 9,361 14,060 15,622 16,942
Tax Rate (%) 32% 119% 52% 23% 19% 25% 25%
Net Profit 6,032 -314 1,516 7,208 11,389 11,795 12,791
Net Profit Margins (%) 5.8% -0.4% 2.0% 8.0% 9.4% 8.7% 8.8%
Source: Company Analysis, Consensus
Mahindra & Mahindra
Quarterly Snapshot
Annual Snapshot
Particulars (INR Crores) FY23Q1 FY23Q2 FY23Q3 FY23Q4 FY24Q1 FY24Q2 FY24Q3
Net Revenues 28414 29870 30621 32456 33892 34436 35299
Total Expenditure 24016 24802 25368 26798 27642 28706 29075
EBITDA 4398 5068 5253 5658 6250 5730 6224
EBITDA Margins (%) 15% 17% 17% 17% 18% 17% 18%
Depreciation 960 1092 1110 1194 1128 1139 1123
EBIT 3438 3976 4143 4464 5122 4591 5101
Interest 1219 1382 1596 1634 1719 1835 1945
Other Income 675 1348 1184 662 1065 812 756
Profit before Tax 2894 3942 3731 3492 4468 3568 3912
Tax Rate (%) 18% 23% 20% 14% 18% 30% 24%
Net Profit 2373.08 3035.34 2984.83003.12 3663.76 2497.62973.12
Net Profit Margins (%) 8% 10% 10% 9% 11% 7% 8%
Particulars (INR Crores) FY19 FY20 FY21 FY22 FY23 FY24E FY25E
Net Revenues 104,721 75,382 74,278 90,171121,269 136,172146,157
YoY Change % 13.7% -28.0% -1.5% 21.4% 34.5% 12.3% 7.3%
Total Expenses 89,514 65,224 62,791 75,488100,983 111,790119,548
Total Expenses % Sales 85.5% 86.5% 84.5% 83.7% 83.3% 82.1% 81.8%
EBITDA 15,207 10,158 11,487 14,683 20,286 24,382 26,609
EBITDA Margins (%) 14.5% 13.5% 15.5% 16.3% 16.7% 17.9% 18.2%
Depreciation 3,991 3,367 3,378 3,508 4,357 4,712 5,374
EBIT 11,216 6,791 8,109 11,175 15,929 19,670 21,235
EBIT Margins (%) 10.7% 9.0% 10.9% 12.4% 13.1% 14.4% 14.5%
Interest Expenses 5,021 6,021 6,102 5,018 5,830 6,393 6,611
Other Income 2,676 885 1,152 3,204 3,961 2345 2318
Profit before Tax 8,871 1,655 3,159 9,361 14,060 15,622 16,942
Tax Rate (%) 32% 119% 52% 23% 19% 25% 25%
Net Profit 6,032 -314 1,516 7,208 11,389 11,795 12,791
Net Profit Margins (%) 5.8% -0.4% 2.0% 8.0% 9.4% 8.7% 8.8%
Source: Company Analysis, Consensus
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Annual Revenue Snapshot (Auto and Tractor)
Source: Company Analysis
Particulars (Units Thousands) FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
Tractors 330 302 354 355 408 403 424 449
Growth (%) 3% -8% 17% 0% 15% -1% 5% 6%
% of total volumes 35% 39% 50% 43% 37% 33% 32% 32%
Autos
Pick-up/LCVs (<3.5t) 229 188 154 171 239 250 263 276
Growth (%) -18% -18% 11% 40% 5% 5% 5%
SUVs 237 179 156 226 359 451 494 533
Growth (%) -24% -13% 45% 59% 26% 10% 8%
3-Ws 67 62 21 30 59 84 94 106
Growth (%) -7% -66% 43% 97% 42% 12% 13%
LCVs (>3.5t) 8 6 2 2 4 7 9 11
Growth (%) -25% -67% 0% 100% 75% 29% 22%
M&HCVs (MTBL) 11 5 3 4 6 6 7 7
Growth (%) -55% -40% 33% 50% 0% 17% 0%
Others & Exports 56 35 18 33 32 35 39 43
Growth (%) -38% -49% 83% -3% 9% 11% 10%
Total Autos 609 476 352 466 698 835 906 975
Growth (%) -22% -26% 32% 50% 20% 9% 8%
% of total volumes 65% 61% 50% 57% 63% 67% 68% 68%
Total Volumes (Units Thousands) 939 778 707 820 1106 1238 1330 1425
Growth (%) -17% -9% 16% 35% 12% 7% 7%
Net Sales (INR Crores) 52800 44900 44500 57800 85000100600110500120900
Growth (%) -15% -1% 30% 47% 18% 10% 9%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
FY19FY20FY21FY22FY23FY24EFY25E
Sales vs Sales Growth
Net Revenues YoY Change %
-20%
-10%
0%
10%
20%
30%
40%
0
200
400
600
800
1000
1200
1400
1600
FY19 FY20 FY21 FY22 FY23 FY24EFY25EFY26E
Volume vs Volume Growth (Auto)
Series1 Series2
Mahindra & Mahindra
Annual Revenue Snapshot (Auto and Tractor)
Source: Company Analysis
Particulars (Units Thousands) FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
Tractors 330 302 354 355 408 403 424 449
Growth (%) 3% -8% 17% 0% 15% -1% 5% 6%
% of total volumes 35% 39% 50% 43% 37% 33% 32% 32%
Autos
Pick-up/LCVs (<3.5t) 229 188 154 171 239 250 263 276
Growth (%) -18% -18% 11% 40% 5% 5% 5%
SUVs 237 179 156 226 359 451 494 533
Growth (%) -24% -13% 45% 59% 26% 10% 8%
3-Ws 67 62 21 30 59 84 94 106
Growth (%) -7% -66% 43% 97% 42% 12% 13%
LCVs (>3.5t) 8 6 2 2 4 7 9 11
Growth (%) -25% -67% 0% 100% 75% 29% 22%
M&HCVs (MTBL) 11 5 3 4 6 6 7 7
Growth (%) -55% -40% 33% 50% 0% 17% 0%
Others & Exports 56 35 18 33 32 35 39 43
Growth (%) -38% -49% 83% -3% 9% 11% 10%
Total Autos 609 476 352 466 698 835 906 975
Growth (%) -22% -26% 32% 50% 20% 9% 8%
% of total volumes 65% 61% 50% 57% 63% 67% 68% 68%
Total Volumes (Units Thousands) 939 778 707 820 1106 1238 1330 1425
Growth (%) -17% -9% 16% 35% 12% 7% 7%
Net Sales (INR Crores) 52800 44900 44500 57800 85000100600110500120900
Growth (%) -15% -1% 30% 47% 18% 10% 9%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
FY19FY20FY21FY22FY23FY24EFY25E
Sales vs Sales Growth
Net Revenues YoY Change %
-20%
-10%
0%
10%
20%
30%
40%
0
200
400
600
800
1000
1200
1400
1600
FY19 FY20 FY21 FY22 FY23 FY24EFY25EFY26E
Volume vs Volume Growth (Auto)
Series1 Series2
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Commentary:
Revenue
The company has showcased robust performance across various
segments, particularly in the SUV and LCV sectors. With a 34%
CAGR in revenue over the last two years, the company has
solidified its leadership position in the SUV market and expanded
its market share in the LCV segment by an impressive 4% over F21.
The company's strategic focus is on reducing with a 3% year-on-
year cost reduction as a percentage of revenue.
SUV revenue has surged by 28%, indicating strong demand and
market penetration. The LCV market share has experienced a
significant uptrend of 280 basis points, reaching a commendable
49.6%, stating the company's dominance in this space. The farm
machinery segment has shown promising growth, with revenues
soaring by 35%, although management feels that this growth could
be even more substantial. The company continues to witness
robust demand for vehicles priced above 12-13 lakhs. Overall,
Sales volume in the Auto segment witnessed an increase of 50%
clocking 6,98,456 vehicles in the current year from 4,65,605
vehicles in the previous year. An increase in volumes combined
with higher realization led to Revenue from operations growing by
53.7% as compared to the previous year.
Source: Company Analysis
15.6%
17.9%
17.1%
19.0%
20.6%
19.6%
20.2%19.9%
21.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Q3FY22Q4FY22Q1FY23Q2FY23Q3FY23Q4FY23Q1FY24Q2FY24Q3FY24
Revenue Market Share
37.5%
42.7%
44.3%
46.8%46.5%
44.4%
49.1%49.6%49.6%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Q3FY22Q4FY22Q1FY23Q2FY23Q3FY23Q4FY23Q1FY24Q2FY24Q3FY24
LCV <3.5T Market Share
EBITDA Margins
In recent Quarterly Results, the company posted the consolidated
EBITDA at INR 6224 crores with a margin of 17.6% (QoQ growth of
40 bps and sequential growth of 100 bps). EBIT margin in the auto
segment expanded 170bps YoY to 8.3% in Q3FY24, while FES saw a
decline of 80bps YoY to 15.5%, including a 70bps one-time impact
from Cricket World Cup sponsorship. The company has done a
great job of keeping EBITDA margins steady between 17% and
19%, even when the industry has been up and down. The
operating margins for the company is the highest among its peers.
The company is on track with cost-cutting measures, and further
capacity utilization will act as a tailwind in overall margin growth.
(Other expenses increased 27% YoY to Rs 18.5bn owing to a one-
off impact from Cricket World Cup sponsorships).
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
0
1000
2000
3000
4000
5000
6000
7000
FY23Q1FY23Q2FY23Q3FY23Q4FY24Q1FY24Q2FY24Q3
EBITDA and Margins Growth
Series1 Series2
Gross Margins
The company posted 34.5% growth in revenue for FY23 and 42.5%
growth in Cost of goods sold. The COGS as % of revenue is at an
all-time high at 60.4% as against 56.9% during FY22 which resulted
in nominal gross margins of 39.6% as against 43.1% during FY22.
40.2%40.5%40.9%40.1%
42.3%43.2%
49.7%49.0%
43.1%
39.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23
Gross Margins
Inventory
The company revenue growth and growth in inventory are almost
aligned, the inventory days remained flat during FY23. (83 days vs
82 days in FY22). The median inventory days for the peers stands
at 66 days (Highest 83 days and Lowest being 19 days).
Considering the size and scale of the company's operations, the
inventory days seem to be right. The company is not blindly
building up dealer inventory. The company has faced some raw
material shortages like Steel during a few months of the year due
to which they lost production but caught up production towards
the end of the month.
0
20
40
60
80
100
120
0
20000
40000
60000
80000
100000
120000
140000
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Inventory
Sales Inventory Inventory Days
Mahindra & Mahindra
Commentary:
Revenue
The company has showcased robust performance across various
segments, particularly in the SUV and LCV sectors. With a 34%
CAGR in revenue over the last two years, the company has
solidified its leadership position in the SUV market and expanded
its market share in the LCV segment by an impressive 4% over F21.
The company's strategic focus is on reducing with a 3% year-on-
year cost reduction as a percentage of revenue.
SUV revenue has surged by 28%, indicating strong demand and
market penetration. The LCV market share has experienced a
significant uptrend of 280 basis points, reaching a commendable
49.6%, stating the company's dominance in this space. The farm
machinery segment has shown promising growth, with revenues
soaring by 35%, although management feels that this growth could
be even more substantial. The company continues to witness
robust demand for vehicles priced above 12-13 lakhs. Overall,
Sales volume in the Auto segment witnessed an increase of 50%
clocking 6,98,456 vehicles in the current year from 4,65,605
vehicles in the previous year. An increase in volumes combined
with higher realization led to Revenue from operations growing by
53.7% as compared to the previous year.
Source: Company Analysis
15.6%
17.9%
17.1%
19.0%
20.6%
19.6%
20.2%19.9%
21.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Q3FY22Q4FY22Q1FY23Q2FY23Q3FY23Q4FY23Q1FY24Q2FY24Q3FY24
Revenue Market Share
37.5%
42.7%
44.3%
46.8%46.5%
44.4%
49.1%49.6%49.6%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Q3FY22Q4FY22Q1FY23Q2FY23Q3FY23Q4FY23Q1FY24Q2FY24Q3FY24
LCV <3.5T Market Share
EBITDA Margins
In recent Quarterly Results, the company posted the consolidated
EBITDA at INR 6224 crores with a margin of 17.6% (QoQ growth of
40 bps and sequential growth of 100 bps). EBIT margin in the auto
segment expanded 170bps YoY to 8.3% in Q3FY24, while FES saw a
decline of 80bps YoY to 15.5%, including a 70bps one-time impact
from Cricket World Cup sponsorship. The company has done a
great job of keeping EBITDA margins steady between 17% and
19%, even when the industry has been up and down. The
operating margins for the company is the highest among its peers.
The company is on track with cost-cutting measures, and further
capacity utilization will act as a tailwind in overall margin growth.
(Other expenses increased 27% YoY to Rs 18.5bn owing to a one-
off impact from Cricket World Cup sponsorships).
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
0
1000
2000
3000
4000
5000
6000
7000
FY23Q1FY23Q2FY23Q3FY23Q4FY24Q1FY24Q2FY24Q3
EBITDA and Margins Growth
Series1 Series2
Gross Margins
The company posted 34.5% growth in revenue for FY23 and 42.5%
growth in Cost of goods sold. The COGS as % of revenue is at an
all-time high at 60.4% as against 56.9% during FY22 which resulted
in nominal gross margins of 39.6% as against 43.1% during FY22.
40.2%40.5%40.9%40.1%
42.3%43.2%
49.7%49.0%
43.1%
39.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23
Gross Margins
Inventory
The company revenue growth and growth in inventory are almost
aligned, the inventory days remained flat during FY23. (83 days vs
82 days in FY22). The median inventory days for the peers stands
at 66 days (Highest 83 days and Lowest being 19 days).
Considering the size and scale of the company's operations, the
inventory days seem to be right. The company is not blindly
building up dealer inventory. The company has faced some raw
material shortages like Steel during a few months of the year due
to which they lost production but caught up production towards
the end of the month.
0
20
40
60
80
100
120
0
20000
40000
60000
80000
100000
120000
140000
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Inventory
Sales Inventory Inventory Days
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Commentary:
Source: Company Analysis
Trade Receivables
The company has maintained a consistent receivable policy. The
growth of receivables is in line with revenue growth. In the last 4
years, the company has witnessed higher revenue growth than
receivables, due to which the receivable days have been reduced
from 34 days in FY20 to 21 days in FY23. Also, the receivable
turnover (sales/receivables) has been improved from 10.9x in FY20
to 17.3x in FY23. Receivables as a % of revenue is on a downtrend
and currently stands at 5.8% in FY23 as against 7.1% in FY22 (Only
5.8% of revenue is from receivables) which shows that the
company is not even close to the credit risk.
Basis our research, the peers in the industry have median
receivable days of 17 which is slightly lower than the company's
receivable days. However, we noticed that the company’s
receivable days are better than close peers. (tractors – depend on
crop) which has an average receivable days of 43 days. (Ashok
Leyland and Escorts).
Out of total reported receivables in FY23, ~41% is not due and
~44% is due for less than 6 months. So, Close to 85% of
receivables are being collected before 6 months. Considering the
overall credit risk management of the company, the receivables
are not at significant risk of impairment.
-40.0%
-20.0%
0.0%
20.0%
40.0%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales vs Receivables Growth
Sales Growth Receivables Growth
9.2%
8.3%
9.2%
8.1%
7.1%
5.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Receivables as % of Revenue
6%
5%
4%
4% 4%
3%
0%
1%
2%
3%
4%
5%
6%
7%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Receivables as % of Total Assets
Fixed Assets
The company posted 52,091 Crores of Gross block in FY23 as
against 48,526 Crores of Gross block in FY22. The company has
69% of the gross block in building and plant machinery. The
company has Net Fixed Assets of 27,141 Crores. The company's
Fixed Asset Turnover ratio (Sales/Fixed Assets) stands at 4.5x. It
tells that the company is efficient in generating sales from its
existing fixed assets as the ratio has improved from 3.5x in FY18 to
4.5x in FY23. Further, the Change in Revenue/Change in Gross
Block for FY23 is 8.7x (for 1 Rs invested in Gross Fixed Asset, the
company is generating 8.7 Rs of Revenue) which shows that the
company is converting CAPEX into revenue efficiently. It has
improved from 0.9x in FY18 to 8.7x currently.
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
FY18 FY19 FY20 FY21 FY22 FY23
Fixed Asset Turnover
Net Assets Growth Fixed Asset Turnover
Depreciation
The company witnessed Depreciation as % of Revenue and
Depreciation as % of Fixed Assets is 3.6% and 16.1% respectively in
FY23. The median figures for the peers during same time period is
2.25% and 13.45% respectively. The company has 12 years of
useful life of assets (Gross Block/Dep for the year) and 5.7 years as
average life of assets (Accumulated Dep/Dep for the year) in FY23
which has been maintained historically. Only once it has touched
the double digit of 11.1 years in FY20. This shows that the
company is doing CAPEX on a regular basis and are not allowing its
machinery to get old. The median of 10 years for % of Assets
consumed (Accumulated Dep/Gross Block) is 52%.
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Revenue vs Depreciation Growth
Revenue Growth Depreciation Growth
Mahindra & Mahindra
Commentary:
Source: Company Analysis
Trade Receivables
The company has maintained a consistent receivable policy. The
growth of receivables is in line with revenue growth. In the last 4
years, the company has witnessed higher revenue growth than
receivables, due to which the receivable days have been reduced
from 34 days in FY20 to 21 days in FY23. Also, the receivable
turnover (sales/receivables) has been improved from 10.9x in FY20
to 17.3x in FY23. Receivables as a % of revenue is on a downtrend
and currently stands at 5.8% in FY23 as against 7.1% in FY22 (Only
5.8% of revenue is from receivables) which shows that the
company is not even close to the credit risk.
Basis our research, the peers in the industry have median
receivable days of 17 which is slightly lower than the company's
receivable days. However, we noticed that the company’s
receivable days are better than close peers. (tractors – depend on
crop) which has an average receivable days of 43 days. (Ashok
Leyland and Escorts).
Out of total reported receivables in FY23, ~41% is not due and
~44% is due for less than 6 months. So, Close to 85% of
receivables are being collected before 6 months. Considering the
overall credit risk management of the company, the receivables
are not at significant risk of impairment.
-40.0%
-20.0%
0.0%
20.0%
40.0%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales vs Receivables Growth
Sales Growth Receivables Growth
9.2%
8.3%
9.2%
8.1%
7.1%
5.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Receivables as % of Revenue
6%
5%
4%
4% 4%
3%
0%
1%
2%
3%
4%
5%
6%
7%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Receivables as % of Total Assets
Fixed Assets
The company posted 52,091 Crores of Gross block in FY23 as
against 48,526 Crores of Gross block in FY22. The company has
69% of the gross block in building and plant machinery. The
company has Net Fixed Assets of 27,141 Crores. The company's
Fixed Asset Turnover ratio (Sales/Fixed Assets) stands at 4.5x. It
tells that the company is efficient in generating sales from its
existing fixed assets as the ratio has improved from 3.5x in FY18 to
4.5x in FY23. Further, the Change in Revenue/Change in Gross
Block for FY23 is 8.7x (for 1 Rs invested in Gross Fixed Asset, the
company is generating 8.7 Rs of Revenue) which shows that the
company is converting CAPEX into revenue efficiently. It has
improved from 0.9x in FY18 to 8.7x currently.
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
FY18 FY19 FY20 FY21 FY22 FY23
Fixed Asset Turnover
Net Assets Growth Fixed Asset Turnover
Depreciation
The company witnessed Depreciation as % of Revenue and
Depreciation as % of Fixed Assets is 3.6% and 16.1% respectively in
FY23. The median figures for the peers during same time period is
2.25% and 13.45% respectively. The company has 12 years of
useful life of assets (Gross Block/Dep for the year) and 5.7 years as
average life of assets (Accumulated Dep/Dep for the year) in FY23
which has been maintained historically. Only once it has touched
the double digit of 11.1 years in FY20. This shows that the
company is doing CAPEX on a regular basis and are not allowing its
machinery to get old. The median of 10 years for % of Assets
consumed (Accumulated Dep/Gross Block) is 52%.
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Revenue vs Depreciation Growth
Revenue Growth Depreciation Growth
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Commentary:
Source: Company Analysis
Interest
The company has paid interest of INR 5830 Crores during FY23
which is 37% of its earnings (EBIT). The interest as % of earnings
has been reduced from 45% in FY19 to 37% in FY23. The current
gross debt of the company is about 1,500 crores, which is the
lowest for a while. The borrowings carry varying rates of interest
up to 9.55% p.a. and have maturities starting from 2023 and
ending with 2063. The Interest coverage ratio (ICR) for the
company is 3.17. Among the peers, Escorts has the highest ICR
with 89 and Ashok Leyland has the lowest 2.36.
0%
20%
40%
60%
80%
100%
Mar-14Mar-15Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21Mar-22Mar-23
Interest as % of Earnings
Cash
The company has a cash balance of INR 16,000 Crores after
repaying 3,500 crores of debt as well. Almost 5,000 crores of net
cash was generated during the first half of FY23. This includes an
inflow from the PE funds into both MEAL and LMM which is about
INR 900 Crores and this is something that gives a view of how the
future growth can be funded and CAPEX-related items. The
CFO/EBITDA in FY23 is -34.9% which shows the company used up
cash from other sources like investing (sale of assets) and
financing (debt or equity) to meet its operating requirements and
did not make cash from operational activities. . The company has
6% of cash as % of assets and they have maintained this between
5-7% always. This shows that the company either uses cash for
CAPEX or invests in new businesses and does not keep
unnecessary cash as it is a non-operating asset.
5%
-29%
-14%
156%
63%
-35%
-50%
0%
50%
100%
150%
200%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
CFO/EBITDA
Selling General and Administrative Expenses
The company witnessed 14.1% growth in Selling General &
Administrative (SG&A) Expenses in FY23 majorly on account of
Distribution Expenses. The company has maintained a constant
Employee Cost over the years and is hovering around 35%. The
SG&A as % of Revenue has been decreased to 22% in FY23 as
against 26% in FY22. The company is focusing on managing cost as
they have added a whole new quantum of cost as moved to BS6.2.
So, the pricing is not at the moment giving a margin upside and
neither is material cost softening.
27% 28%
31%
29%
26%
22%
0%
5%
10%
15%
20%
25%
30%
35%
Mar2018 Mar2019 Mar2020 Mar2021 Mar2022 Mar2023
SG&A as % of Revenue
Cash Conversion Cycle
The company has a negative cash conversion cycle of -20 days in
FY23 as compared to -37 days in FY22. The company has
maintained negative CCC with a best of -38 days during FY18. A
negative cash conversion cycle is a desirable situation for the
business as vendors are financing the business operationswhich
alsomakesiteasierforthecompanytopayitssuppliersandcover
anyoutstandingbillspromptly.The median cash conversion cycle
for the peers is -19 days (The highest is 49 days for Escorts and the
lowest is -45 days for Tata Motors).
-38
-33
-9
-36
-37
-20
-40
-35
-30
-25
-20
-15
-10
-5
0
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Cash Conversion Cycle
Mahindra & Mahindra
Commentary:
Source: Company Analysis
Interest
The company has paid interest of INR 5830 Crores during FY23
which is 37% of its earnings (EBIT). The interest as % of earnings
has been reduced from 45% in FY19 to 37% in FY23. The current
gross debt of the company is about 1,500 crores, which is the
lowest for a while. The borrowings carry varying rates of interest
up to 9.55% p.a. and have maturities starting from 2023 and
ending with 2063. The Interest coverage ratio (ICR) for the
company is 3.17. Among the peers, Escorts has the highest ICR
with 89 and Ashok Leyland has the lowest 2.36.
0%
20%
40%
60%
80%
100%
Mar-14Mar-15Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21Mar-22Mar-23
Interest as % of Earnings
Cash
The company has a cash balance of INR 16,000 Crores after
repaying 3,500 crores of debt as well. Almost 5,000 crores of net
cash was generated during the first half of FY23. This includes an
inflow from the PE funds into both MEAL and LMM which is about
INR 900 Crores and this is something that gives a view of how the
future growth can be funded and CAPEX-related items. The
CFO/EBITDA in FY23 is -34.9% which shows the company used up
cash from other sources like investing (sale of assets) and
financing (debt or equity) to meet its operating requirements and
did not make cash from operational activities. . The company has
6% of cash as % of assets and they have maintained this between
5-7% always. This shows that the company either uses cash for
CAPEX or invests in new businesses and does not keep
unnecessary cash as it is a non-operating asset.
5%
-29%
-14%
156%
63%
-35%
-50%
0%
50%
100%
150%
200%
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
CFO/EBITDA
Selling General and Administrative Expenses
The company witnessed 14.1% growth in Selling General &
Administrative (SG&A) Expenses in FY23 majorly on account of
Distribution Expenses. The company has maintained a constant
Employee Cost over the years and is hovering around 35%. The
SG&A as % of Revenue has been decreased to 22% in FY23 as
against 26% in FY22. The company is focusing on managing cost as
they have added a whole new quantum of cost as moved to BS6.2.
So, the pricing is not at the moment giving a margin upside and
neither is material cost softening.
27% 28%
31%
29%
26%
22%
0%
5%
10%
15%
20%
25%
30%
35%
Mar2018 Mar2019 Mar2020 Mar2021 Mar2022 Mar2023
SG&A as % of Revenue
Cash Conversion Cycle
The company has a negative cash conversion cycle of -20 days in
FY23 as compared to -37 days in FY22. The company has
maintained negative CCC with a best of -38 days during FY18. A
negative cash conversion cycle is a desirable situation for the
business as vendors are financing the business operationswhich
alsomakesiteasierforthecompanytopayitssuppliersandcover
anyoutstandingbillspromptly.The median cash conversion cycle
for the peers is -19 days (The highest is 49 days for Escorts and the
lowest is -45 days for Tata Motors).
-38
-33
-9
-36
-37
-20
-40
-35
-30
-25
-20
-15
-10
-5
0
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Cash Conversion Cycle
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
DuPont Analysis - ROE
Source: Company Analysis
104,721
75,38274,278
90,171
121,269
2019 2020 2021 2022 2023
Revenues (INR Crores)
6,017
-321
1,512
7,253
11,374
2019 2020 2021 2022 2023
Net Profit (INR Crores)
149,129
163,803165,342168,678
188,336
2019 2020 2021 2022 2023
Average Total Assets (INR Crores)
15.7%
-0.8%
3.7%
16.4%
22.0%
2019 2020 2021 2022 2023
Return on Equity (%)
4.0%
-0.2%
0.9%
4.3%
6.0%
2019 2020 2021 2022 2023
Return on Asset (%)
3.89x
4.10x 4.05x
3.80x
3.64x
2019 2020 2021 2022 2023
Financial Leverage
RETURN ON EQUITY (ROE)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit ₹ 6,017.00 ₹ -321.00 ₹ 1,512.00 ₹ 7,253.00₹ 11,374.00
Average Shareholder Equity ₹ 38,379.00₹ 39,976.00₹ 40,775.50₹ 44,352.50₹ 51,744.50
Return on Equity (ROE) 15.68% -0.80% 3.71% 16.35% 21.98%
ROE -DUPONT EQUATION
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 6,017.00 ₹ -321.00 ₹ 1,512.00 ₹ 7,253.00₹ 11,374.00
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
NET PROFIT MARGIN (A) 5.75% -0.43% 2.04% 8.04% 9.38%
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
AVERAGE TOTAL ASSETS ₹ 149,129.00₹ 163,802.50₹ 165,342.00₹ 168,678.00₹ 188,335.50
ASSET TURNOVER RATIO (B) 0.70 0.46 0.45 0.53 0.64
AVERAGE TOTAL ASSETS ₹ 149,129.00₹ 163,802.50₹ 165,342.00₹ 168,678.00₹ 188,335.50
AVERAGE SHAREHOLDERS EQUITY ₹ 38,379.00₹ 39,976.00₹ 40,775.50₹ 44,352.50₹ 51,744.50
EQUITY MULTIPLIER (C) 3.89 4.10 4.05 3.80 3.64
RETURN ON EQUITY (A*B*C) 15.68% -0.80% 3.71% 16.35% 21.98%
DuPont Summary
•The ROE of M&M decreased to -0.8% during COVID and made a low in FY2020 which has now risen to 21.98% as of 31 March 2023. The
company has started to take concrete steps to achieve and sustain 18% ROE from all its businesses.
•ROE has increased significantly in the past 5 years from 15.68% to 21.98%. The asset efficiency and financial leverage of the company
are constantly maintained throughout the period, the reason for the rise in ROE is the increase of Net Profit Margins of the company
from 5.75% in FY2019 to 9.38% in FY2023.
•The company maintains its commitment to a disciplined capital allocation and maintains its policy of not investing in non-core areas in
normal situations. The company is consistently focusing on improvement in its profit margins. The EV projects are on track. Historically
the company’s operating performance has largely depended on the tractor segment, however, due to increasing volumes going ahead
the auto segment is also expected to drive its performance.
Mahindra & Mahindra
DuPont Analysis - ROE
Source: Company Analysis
104,721
75,38274,278
90,171
121,269
2019 2020 2021 2022 2023
Revenues (INR Crores)
6,017
-321
1,512
7,253
11,374
2019 2020 2021 2022 2023
Net Profit (INR Crores)
149,129
163,803165,342168,678
188,336
2019 2020 2021 2022 2023
Average Total Assets (INR Crores)
15.7%
-0.8%
3.7%
16.4%
22.0%
2019 2020 2021 2022 2023
Return on Equity (%)
4.0%
-0.2%
0.9%
4.3%
6.0%
2019 2020 2021 2022 2023
Return on Asset (%)
3.89x
4.10x 4.05x
3.80x
3.64x
2019 2020 2021 2022 2023
Financial Leverage
RETURN ON EQUITY (ROE)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit ₹ 6,017.00 ₹ -321.00 ₹ 1,512.00 ₹ 7,253.00₹ 11,374.00
Average Shareholder Equity ₹ 38,379.00₹ 39,976.00₹ 40,775.50₹ 44,352.50₹ 51,744.50
Return on Equity (ROE) 15.68% -0.80% 3.71% 16.35% 21.98%
ROE -DUPONT EQUATION
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 6,017.00 ₹ -321.00 ₹ 1,512.00 ₹ 7,253.00₹ 11,374.00
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
NET PROFIT MARGIN (A) 5.75% -0.43% 2.04% 8.04% 9.38%
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
AVERAGE TOTAL ASSETS ₹ 149,129.00₹ 163,802.50₹ 165,342.00₹ 168,678.00₹ 188,335.50
ASSET TURNOVER RATIO (B) 0.70 0.46 0.45 0.53 0.64
AVERAGE TOTAL ASSETS ₹ 149,129.00₹ 163,802.50₹ 165,342.00₹ 168,678.00₹ 188,335.50
AVERAGE SHAREHOLDERS EQUITY ₹ 38,379.00₹ 39,976.00₹ 40,775.50₹ 44,352.50₹ 51,744.50
EQUITY MULTIPLIER (C) 3.89 4.10 4.05 3.80 3.64
RETURN ON EQUITY (A*B*C) 15.68% -0.80% 3.71% 16.35% 21.98%
DuPont Summary
•The ROE of M&M decreased to -0.8% during COVID and made a low in FY2020 which has now risen to 21.98% as of 31 March 2023. The
company has started to take concrete steps to achieve and sustain 18% ROE from all its businesses.
•ROE has increased significantly in the past 5 years from 15.68% to 21.98%. The asset efficiency and financial leverage of the company
are constantly maintained throughout the period, the reason for the rise in ROE is the increase of Net Profit Margins of the company
from 5.75% in FY2019 to 9.38% in FY2023.
•The company maintains its commitment to a disciplined capital allocation and maintains its policy of not investing in non-core areas in
normal situations. The company is consistently focusing on improvement in its profit margins. The EV projects are on track. Historically
the company’s operating performance has largely depended on the tractor segment, however, due to increasing volumes going ahead
the auto segment is also expected to drive its performance.
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
DuPont Analysis – ROA, ROCE
Source: Company Analysis
RETURN ON ASSET (ROA)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit ₹ 6,017.00 ₹ -321.00 ₹ 1,512.00 ₹ 7,253.00₹ 11,374.00
Average Total Asset ₹ 149,129.00₹ 163,802.50₹ 165,342.00₹ 168,678.00₹ 188,335.50
Return on Asset (ROA) 4.03% -0.20% 0.91% 4.30% 6.04%
ROA -DUPONT EQUATION
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 6,017.00 ₹ -321.00 ₹ 1,512.00 ₹ 7,253.00₹ 11,374.00
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
NET PROFIT MARGIN (A) 5.75% -0.43% 2.04% 8.04% 9.38%
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
AVERAGE TOTAL ASSETS ₹ 149,129.00₹ 163,802.50₹ 165,342.00₹ 168,678.00₹ 188,335.50
ASSET TURNOVER RATIO (B) 0.70 0.46 0.45 0.53 0.64
RETURN ON ASSET (A*B) 4.03% -0.20% 0.91% 4.30% 6.04%
RETURN ON CAPITAL EMPLOYED (ROCE)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
EBIT ₹ 11,215.70 ₹ 9,824.90₹ 10,233.10₹ 11,072.20₹ 15,928.50
Capital Employed ₹ 94,918.35₹ 104,014.56₹ 104,228.93₹ 106,397.90₹ 122,980.79
Return on Capital Employed (ROCE) 11.82% 9.45% 9.82% 10.41% 12.95%
ROCE -DUPONT EQUATION
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
EBIT ₹ 11,215.70 ₹ 9,824.90₹ 10,233.10₹ 11,072.20₹ 15,928.50
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
EBIT MARGIN (A) 10.71% 13.03% 13.78% 12.28% 13.13%
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
CAPITAL EMPLOYED ₹ 94,918.35₹ 104,014.56₹ 104,228.93₹ 106,397.90₹ 122,980.79
CAPITAL TURNOVER RATIO (B) 1.10 0.72 0.71 0.85 0.99
RETURN ON CAPITAL EMPLOYED (A*B) 11.82% 9.45% 9.82% 10.41% 12.95%
DuPont Summary
•The ROA of the company has been increased from 4.03% in FY2019 to 6.04% in FY2023. While the asset efficiency remains constant, the
reason for the increase in ROA is the increased net margin of the company.
•The ROCE of the company has been maintained over the years, currently at 12.95%. The increase in the EBIT margins has been offset by
a low capital turnover ratio. The capital turnover ratio has declined from 1.1x in FY19 to 0.99x in FY23.
Mahindra & Mahindra
DuPont Analysis – ROA, ROCE
Source: Company Analysis
RETURN ON ASSET (ROA)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit ₹ 6,017.00 ₹ -321.00 ₹ 1,512.00 ₹ 7,253.00₹ 11,374.00
Average Total Asset ₹ 149,129.00₹ 163,802.50₹ 165,342.00₹ 168,678.00₹ 188,335.50
Return on Asset (ROA) 4.03% -0.20% 0.91% 4.30% 6.04%
ROA -DUPONT EQUATION
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 6,017.00 ₹ -321.00 ₹ 1,512.00 ₹ 7,253.00₹ 11,374.00
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
NET PROFIT MARGIN (A) 5.75% -0.43% 2.04% 8.04% 9.38%
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
AVERAGE TOTAL ASSETS ₹ 149,129.00₹ 163,802.50₹ 165,342.00₹ 168,678.00₹ 188,335.50
ASSET TURNOVER RATIO (B) 0.70 0.46 0.45 0.53 0.64
RETURN ON ASSET (A*B) 4.03% -0.20% 0.91% 4.30% 6.04%
RETURN ON CAPITAL EMPLOYED (ROCE)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
EBIT ₹ 11,215.70 ₹ 9,824.90₹ 10,233.10₹ 11,072.20₹ 15,928.50
Capital Employed ₹ 94,918.35₹ 104,014.56₹ 104,228.93₹ 106,397.90₹ 122,980.79
Return on Capital Employed (ROCE) 11.82% 9.45% 9.82% 10.41% 12.95%
ROCE -DUPONT EQUATION
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
EBIT ₹ 11,215.70 ₹ 9,824.90₹ 10,233.10₹ 11,072.20₹ 15,928.50
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
EBIT MARGIN (A) 10.71% 13.03% 13.78% 12.28% 13.13%
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
CAPITAL EMPLOYED ₹ 94,918.35₹ 104,014.56₹ 104,228.93₹ 106,397.90₹ 122,980.79
CAPITAL TURNOVER RATIO (B) 1.10 0.72 0.71 0.85 0.99
RETURN ON CAPITAL EMPLOYED (A*B) 11.82% 9.45% 9.82% 10.41% 12.95%
DuPont Summary
•The ROA of the company has been increased from 4.03% in FY2019 to 6.04% in FY2023. While the asset efficiency remains constant, the
reason for the increase in ROA is the increased net margin of the company.
•The ROCE of the company has been maintained over the years, currently at 12.95%. The increase in the EBIT margins has been offset by
a low capital turnover ratio. The capital turnover ratio has declined from 1.1x in FY19 to 0.99x in FY23.
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
DuPont Analysis – ROIC
Source: Company Analysis
DuPont Summary
•The ROIC for the company has been increased to 12.63% in FY23 from 9.07% in FY19 and 5.99% in FY20. Invested Capital is the capital
that is required only for business operational activities and the capital turnover ratio on Invested capital has been maintained over the
years, the reason for the rise in ROIC is the increase of NOPAT Margins of the company from 7.26% in FY2019 to 10.63% in FY2023.
RETURN ON INVESTED EMPLOYED (ROIC)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 7,604.24 ₹ 5,688.62 ₹ 7,081.31 ₹ 8,580.96₹ 12,886.16
Invested Capital Employed ₹ 83,828.00₹ 94,940.00₹ 80,577.00₹ 83,550.00₹ 102,068.00
Return on Invested Capital (ROIC) 9.07% 5.99% 8.79% 10.27% 12.63%
ROIC -DUPONT EQUATION
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 7,604.24 ₹ 5,688.62 ₹ 7,081.31 ₹ 8,580.96₹ 12,886.16
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
NOPAT MARGIN (A) 7.26% 7.55% 9.53% 9.52% 10.63%
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
INVESTED CAPITAL ₹ 83,828.00₹ 94,940.00₹ 80,577.00₹ 83,550.00₹ 102,068.00
CAPITAL TURNOVER RATIO (B) 1.25 0.79 0.92 1.08 1.19
RETURN ON INVESTED CAPITAL (A*B) 9.07% 5.99% 8.79% 10.27% 12.63%
PEER COMPARISON -DuPont
MAHINDRA & MAHINDRA TATA MOTORS MARUTI SUZUKIASHOK LEYLAND ESCORTS
ROE 21.98% 5.62% 18.30% 15.00% 8.56%
ROA 6.04% 0.85% 13.50% 2.66% 7.04%
ROCE 12.95% 5.95% 23.70% 11.40% 11.30%
ROIC 12.63% 5.93% 54.90% 14.30% 20.80%
11.82%
9.45%
9.82%
10.41%
12.95%
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Return on Capital Employed
9.07%
5.99%
8.79%
10.27%
12.63%
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Return on Invested Capital
Mahindra & Mahindra
DuPont Analysis – ROIC
Source: Company Analysis
DuPont Summary
•The ROIC for the company has been increased to 12.63% in FY23 from 9.07% in FY19 and 5.99% in FY20. Invested Capital is the capital
that is required only for business operational activities and the capital turnover ratio on Invested capital has been maintained over the
years, the reason for the rise in ROIC is the increase of NOPAT Margins of the company from 7.26% in FY2019 to 10.63% in FY2023.
RETURN ON INVESTED EMPLOYED (ROIC)
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 7,604.24 ₹ 5,688.62 ₹ 7,081.31 ₹ 8,580.96₹ 12,886.16
Invested Capital Employed ₹ 83,828.00₹ 94,940.00₹ 80,577.00₹ 83,550.00₹ 102,068.00
Return on Invested Capital (ROIC) 9.07% 5.99% 8.79% 10.27% 12.63%
ROIC -DUPONT EQUATION
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 7,604.24 ₹ 5,688.62 ₹ 7,081.31 ₹ 8,580.96₹ 12,886.16
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
NOPAT MARGIN (A) 7.26% 7.55% 9.53% 9.52% 10.63%
REVENUE ₹ 104,721.00₹ 75,382.00₹ 74,278.00₹ 90,171.00₹ 121,269.00
INVESTED CAPITAL ₹ 83,828.00₹ 94,940.00₹ 80,577.00₹ 83,550.00₹ 102,068.00
CAPITAL TURNOVER RATIO (B) 1.25 0.79 0.92 1.08 1.19
RETURN ON INVESTED CAPITAL (A*B) 9.07% 5.99% 8.79% 10.27% 12.63%
PEER COMPARISON -DuPont
MAHINDRA & MAHINDRA TATA MOTORS MARUTI SUZUKIASHOK LEYLAND ESCORTS
ROE 21.98% 5.62% 18.30% 15.00% 8.56%
ROA 6.04% 0.85% 13.50% 2.66% 7.04%
ROCE 12.95% 5.95% 23.70% 11.40% 11.30%
ROIC 12.63% 5.93% 54.90% 14.30% 20.80%
11.82%
9.45%
9.82%
10.41%
12.95%
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Return on Capital Employed
9.07%
5.99%
8.79%
10.27%
12.63%
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Return on Invested Capital
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Story in Charts
Source: Company Reports
522,648
402,580
327,486
429,087
629,900
748,321
808,187
864,760
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
FY19FY20FY21FY22FY23FY24EFY25EFY26E
New Product launches to drive UV Sales
UV's (incl pick-ups) Growth
511 510 520
557
632
657
673
690
0
100
200
300
400
500
600
700
800
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
FES Net Realization (INR 000/unit)
0
100
200
300
400
500
600
700
800
900
1000
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
Autos Net Realization (INR 000/unit)
43
30
34.1
42.8
64.9
89.4
94.4
104.7
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
0
20
40
60
80
100
120
FY19 FY20 FY21 FY22 FY23 FY24EFY25EFY26E
Standalone EPS
EPS Growth
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
Autos PBIT Margins (%)
22
-6
63
37
57
124
103
120
-20
0
20
40
60
80
100
120
140
0
20
40
60
80
100
120
140
160
180
FY19 FY20 FY21 FY22 FY23 FY24EFY25EFY26E
FCFF to improve despite higher CAPEX
CFO CAPEX FCFF
Source: Company Reports Source: Company Reports
Source: Company Reports Source: Company Reports
Source: Company Reports
Mahindra & Mahindra
Story in Charts
Source: Company Reports
522,648
402,580
327,486
429,087
629,900
748,321
808,187
864,760
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
FY19FY20FY21FY22FY23FY24EFY25EFY26E
New Product launches to drive UV Sales
UV's (incl pick-ups) Growth
511 510 520
557
632
657
673
690
0
100
200
300
400
500
600
700
800
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
FES Net Realization (INR 000/unit)
0
100
200
300
400
500
600
700
800
900
1000
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
Autos Net Realization (INR 000/unit)
43
30
34.1
42.8
64.9
89.4
94.4
104.7
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
0
20
40
60
80
100
120
FY19 FY20 FY21 FY22 FY23 FY24EFY25EFY26E
Standalone EPS
EPS Growth
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
Autos PBIT Margins (%)
22
-6
63
37
57
124
103
120
-20
0
20
40
60
80
100
120
140
0
20
40
60
80
100
120
140
160
180
FY19 FY20 FY21 FY22 FY23 FY24EFY25EFY26E
FCFF to improve despite higher CAPEX
CFO CAPEX FCFF
Source: Company Reports Source: Company Reports
Source: Company Reports Source: Company Reports
Source: Company Reports
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Source: Yahoo Finance
Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24
M&M Tata Motors Maruti Suzuki Ashok Leyland Escorts
Peer Comparison
Peer Stock Performance (1Y) - Indexed
S.No.Name CMP (Rs)MktCap (Rs.Cr.)PEG RatioP/E RatioInterest CoverageDebt/EquityCFO/EBITDA
1 Maruti Suzuki 12490 392689 1.6 29.1 91.0 0.0 0.9
2 M&M 2176 270530 2.4 24.3 3.2 1.7 -0.4
3 Tata Motors 1010 370230 -0.9 18.4 3.3 2.4 1.1
4 Ashok Leyland 198 58242 -3.4 24.7 2.4 3.9 -0.9
5 Escorts Kubota 3544 39157 2.7 38.6 101.7 0.0 0.3
Peers Financial Performance
Source: Screener.in
Mahindra & Mahindra
Source: Yahoo Finance
Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24
M&M Tata Motors Maruti Suzuki Ashok Leyland Escorts
Peer Comparison
Peer Stock Performance (1Y) - Indexed
S.No.Name CMP (Rs)MktCap (Rs.Cr.)PEG RatioP/E RatioInterest CoverageDebt/EquityCFO/EBITDA
1 Maruti Suzuki 12490 392689 1.6 29.1 91.0 0.0 0.9
2 M&M 2176 270530 2.4 24.3 3.2 1.7 -0.4
3 Tata Motors 1010 370230 -0.9 18.4 3.3 2.4 1.1
4 Ashok Leyland 198 58242 -3.4 24.7 2.4 3.9 -0.9
5 Escorts Kubota 3544 39157 2.7 38.6 101.7 0.0 0.3
Peers Financial Performance
Source: Screener.in
Academic Research Project – Not a Recommendation
Mahindra & Mahindra
Analyst Coverage Universe
Source: Trendlyne
# DATE Research House Rating Price at RecoTarget
1 19-Feb-24 ICICI Direct Buy 1848.55 2225
2 15-Feb-24 BOB Capital Markets Ltd. Buy 1765.05 2077
3 15-Feb-24 Prabhudas Lilladhar Buy 1765.05 1875
4 02-Jan-24 Motilal Oswal Buy 1656.2 2005
6 13-Nov-23 BOB Capital Markets Ltd. Buy 1540.25 1849
7 06-Sep-23 Geojit BNP Paribas Hold 1577 1728
8 23-Aug-23 Sharekhan Buy 1542.45 1736
10 05-Aug-23 Motilal Oswal Buy 1464.65 1725
11 05-Aug-23 ICICI Securities Limited Buy 1464.65 1686
12 20-Jun-23 Sharekhan Buy 1396.45 1550
13 31-May-23 Geojit BNP Paribas Buy 1319 1486
14 30-May-23 BOB Capital Markets Ltd. Buy 1328.45 1665
15 29-May-23 Prabhudas Lilladhar Buy 1330.15 1585
16 28-May-23 ICICI Direct Buy 1281.85 1600
17 27-May-23 ICICI Securities Limited Buy 1281.85 1478
18 27-May-23 Motilal Oswal Buy 1281.85 1500
19 26-May-23 Sharekhan Buy 1281.85 1550
20 28-Mar-23 ICICI Securities Limited Buy 1128.3 1386
Disclaimer: This report is for educational purposes and is not meant for commercial usage.
This information/document does not constitute an offer to sell or a solicitation for the purpose or sale of any financial instrument or as an official
confirmation of any transaction. The information contained herein is obtained from publicly available data or other sources believed to be reliable and
the Author has not independently verified the accuracy and completeness of the said data and hence it should not be relied upon as such.
The author is not SEBI registered investment analyst.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing
Mahindra & Mahindra
Analyst Coverage Universe
Source: Trendlyne
# DATE Research House Rating Price at RecoTarget
1 19-Feb-24 ICICI Direct Buy 1848.55 2225
2 15-Feb-24 BOB Capital Markets Ltd. Buy 1765.05 2077
3 15-Feb-24 Prabhudas Lilladhar Buy 1765.05 1875
4 02-Jan-24 Motilal Oswal Buy 1656.2 2005
6 13-Nov-23 BOB Capital Markets Ltd. Buy 1540.25 1849
7 06-Sep-23 Geojit BNP Paribas Hold 1577 1728
8 23-Aug-23 Sharekhan Buy 1542.45 1736
10 05-Aug-23 Motilal Oswal Buy 1464.65 1725
11 05-Aug-23 ICICI Securities Limited Buy 1464.65 1686
12 20-Jun-23 Sharekhan Buy 1396.45 1550
13 31-May-23 Geojit BNP Paribas Buy 1319 1486
14 30-May-23 BOB Capital Markets Ltd. Buy 1328.45 1665
15 29-May-23 Prabhudas Lilladhar Buy 1330.15 1585
16 28-May-23 ICICI Direct Buy 1281.85 1600
17 27-May-23 ICICI Securities Limited Buy 1281.85 1478
18 27-May-23 Motilal Oswal Buy 1281.85 1500
19 26-May-23 Sharekhan Buy 1281.85 1550
20 28-Mar-23 ICICI Securities Limited Buy 1128.3 1386
Disclaimer: This report is for educational purposes and is not meant for commercial usage.
This information/document does not constitute an offer to sell or a solicitation for the purpose or sale of any financial instrument or as an official
confirmation of any transaction. The information contained herein is obtained from publicly available data or other sources believed to be reliable and
the Author has not independently verified the accuracy and completeness of the said data and hence it should not be relied upon as such.
The author is not SEBI registered investment analyst.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing
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