NSE Symbol: M&M | BSE Code: 500520
It was established in the year 1945 by three partners as Mahindra and Mohammed. The name of the company was changed in 1948 after the departure of Malik Ghulam Mohammed. The company set up its operations in Ludhiana in steel trading before expanding to manufacturing after securing a contract to produce Jeeps in India.
After manufacturing light commercial vehicles and tractors, the company soon expanded to two-wheelers after taking over Kinetic Motors. With a vision of pollution-free environment, the company also has a leading stake in the REVA Electric Car Company.
Mahindra Tractors, the farm equipment subsidiary soon became the world's leading tractor manufacturer, with its presence across Australia, America, Africa and Asia.
The collaboration of company with motorsport has also given it broad exposure, with the company allocating significant resources towards the development and sponsorship of sports and adventure in particular. The continued growth and manufacture of the SUV's and MUV's resulted in the opening of a manufacturing plant in Detroit, the USA in November 2017.
Mahindra and Mahindra, popularly known as M&M are a global enterprise with business interests in the automobile, IT, financial services, defense and real estate sectors. With such a diverse portfolio of products and services, the company has invested in 11 business sectors. The company initially functioned as a steel trading company before entering in the manufacturing industry. Its association with Willy Jeep led it to join the LCV industry and later agricultural tractors.
In addition to its automobile business, Mahindra has also entered the two-wheeler segment after taking over the Indian arm of Kinetic Motors. A series of acquisitions cleared the fact that the company makes forays into diverse sectors like information technology (Tech Mahindra), racing (Mahindra Racing), energy and defense.
Mr. Anand Mahindra- Executive Chairman
Mr. Mahindra has served as The Chairman of the Mahindra & Mahindra, since 2016. Before this, he had served as the Chairman and MD of Mahindra & Mahindra as well as the Mahindra Group flagship company from 2012 to 2016. In 1981, Mr. Mahindra began his career at Mahindra Ugine Steel Company and rose steadily, after being appointed as Deputy Managing Director of the flagship company in 1991.
An avid sportsman, Mr, Mahindra has actively promoted and encouraged participation and sponsored many sports. He had established the Pro Kabaddi League to promote interest in the game.
Along with his responsibilities at the Mahindra companies, he serves on the board of the U.S. â€“ India CEO Forum as well.
He is an alumnus of Cornell University and Harvard Business School, and completed his schooling at the Lawrence School, Lovedale.
Dr. Pawan Kumar Goenka- MD
Mr. Goenka has served as the MD at Mahindra & Mahindra since November 2016. Before this, he had served in many capacities across Mahindra subsidiaries. Previously he was working with General Motors, in their R&D facility. He achieved B. Tech in Mechanical Engineering Degree from IIT, Kanpur and received his doctorate from Cornell University. He had also studied management at Harvard Business School.
Currently, he is the Chairman at IIT, Madras of the Board of Directors and has been the recipient of many awards such as the FISITA Medal of Honour for his contribution towards the automobile industry.
The net revenue for the third quarter was recorded at Rs.11,491 crore - a 10.3% y-oy increase over the same quarter last year. Similarly, in the previous year, EBITDA was up by 19.3% over the same period to Rs.1,693 crore. The growth was also evident in the net profit figure as well. The company's profit after tax for the September-December quarter was Rs.1,306 crore - a 16.9% increase over the third quarter of FY17.
Considering the growth in volumes over the last quarter, the overall size of M&M increased by 6.6% over the corresponding quarter of 2017. The amounts in the farm equipment sector (FES) also inclined by roughly 6% y-oy. The exports of tractor also grew by 5.8% over Q3 FY17.
The December quarter also witnessed the launch of two new variants - All Powerful Scorpio and XUV500 W9. Furthermore, for the fiscal year 2018-19, the automobile giant has also scheduled four new options.
On January 1, 2018, the stock opened at Rs.751 on NSE and BSE. Influenced by performance updates, the M&M share price had touched Rs.770 in mid-January, only to drop down again. The closing price at the by month end was Rs.763 on NSE.
By February 20, 2018, the stock price dropped down at Rs.703. Though, in the last week, the shares showed signs of recovery and the closing price at month end was Rs.728 on NSE and BSE.
The market capitalization of M&M Limited, as of March 2018, is over Rs.91,000 crore.
M&M is one of the largest business conglomerates in India, with businesses across over 11 sectors. The primary revenue of the company comes from the automobile and tractor business, which saw a 10% increase in taxes y-oy for the quarter ending December 2017.
M&M has established in the agricultural sector witnessing its absolute dominance in the market shares of tractors. Along with this as the demand for consumer vehicles increases, especially for large trucks, an increase in the revenue of the company can be expected. It has also invested in its subsidiaries and new ventures which may produce monetary returns in the future.
However, considering the company's long-term fundamental financials is not as impressive as its peers like Maruti Suzuki and Ashok Leyland. Therefore, from this perspective, investing in M&M stocks may not seem that feasible. So it is advisable to research appropriately before investing.
Mahindra & Mahindra Limited (M&M), a part of the Mahindra Group, is one of the largest automobile manufacturers in the country and the largest tractor manufacturer in the world.
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