mahindra & mahindra analysis

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Page 1: MAHINDRA & Mahindra analysis
Page 2: MAHINDRA & Mahindra analysis

Players: Indian auto industry

Global OEM

Global OEM

Indian OEM

Indian OEM

Indian Suppliers

Indian Suppliers

Global Suppliers

Global Suppliers

Engineering &

Development

Engineering &

Development

Indian Auto

Industry

Indian Auto

Industry

• GM • Toyota • Ford • Hyundai• Suzuki • Honda• Skoda• Volvo• Mercedes

• Tata Motors• Mahindra &

Mahindra• Bajaj Auto• TVS Motors• Hero Honda• Bajaj Tempo• Ashok Leyland

• Bharat Forge• Sundram

Fasteners• Rane Group• Shriram Pistons• RICO Auto• Sono Koyo

Steering

• Delphi• Visteon• Bosch• Denso• Valeo• Thyssen

Krupp

Page 3: MAHINDRA & Mahindra analysis

Shorter life cycle

Growth in Income levels

Easier financing

Government Policies

New productlaunches

Indian Automotive

Industry

Indian Automotive

Industry

Increasing consumer demand

Cost Competitiveness

Overall economic growth

Export Competitiveness

Reduced cost to consumer

India emerging as a manufacturing hub

Page 4: MAHINDRA & Mahindra analysis

CORE BUSINESS ACTIVITIES CORE BUSINESS ACTIVITIES

AUTOMOTIVE SECTOR

FARM EQUIPMENTS SECTOR

INFORMATION TECHNOLOGY

INFRASTUCTURE DEVELOPMENT

Page 5: MAHINDRA & Mahindra analysis

CAPITAL STRUCTURE ANALYSIS CAPITAL STRUCTURE ANALYSIS

Page 6: MAHINDRA & Mahindra analysis

CAPITAL BUDGETTING DECISION

CAPITAL BUDGETTING DECISION

NEED TO RAISE FUNDNEED TO RAISE FUND

CAPITAL STRUCTURE DECISION

CAPITAL STRUCTURE DECISION

PAYOUT POLICYDESIRED DEBT-EQUITY MIX

EXISTING CAPITAL STRUCTURE

EXISTING CAPITAL STRUCTURE

EFFECT ON RISKEFFECT ON RETURN

EFFECT ON COST OF CAPITAL

VALUE OF THE FIRMVALUE OF THE FIRM

OPTIMUM CAPITAL STRUCTURE

OPTIMUM CAPITAL STRUCTURE

CAPITAL STRUCTURE DECISION PROCESS

Page 7: MAHINDRA & Mahindra analysis
Page 8: MAHINDRA & Mahindra analysis
Page 9: MAHINDRA & Mahindra analysis
Page 10: MAHINDRA & Mahindra analysis

In year 05-06 There was a bonus issue (1:1)

In year 05-06 There was a bonus issue (1:1)

LeverageLeverage

Page 11: MAHINDRA & Mahindra analysis

FY03 FY04 FY05 FY06 FY07

EPS 7.61 26.46 43.83 25.61 40.38

OPERATING MARGIN 8.21 10.47 10.90 10.71 11.45

NET PROFIT MARGIN 3.79 6.88 7.56 10.28 10.34

COVERAGE RATIO 3.68 8.46 29.94 39.60 77.85

RETURN ON NET WORTH

5.82 17.53 24.79 20.77 27.28

PAT (cr) 88.25 306.91 489.39 597.72 961.28

NO OF EQUITY SHARES (in Lakhs)

1,160.09 1,160.09 1,116.48 2,334.00 2380.33

RATIO ANALYSIS RATIO ANALYSIS

Page 12: MAHINDRA & Mahindra analysis

M&M FY03 FY04 FY05 FY06 FY07EPS 7.61 26.46 43.83 25.61 40.38

OPERATING MARGIN 8.21 10.47 10.90 10.71 11.45

NET PROFIT MARGIN 3.79 6.88 7.56 10.28 10.34

RETURN ON NET WORTH 5.82 17.53 24.79 20.77 27.28

PAT (cr) 88.25 306.91 489.39 597.72 961.28

NO OF EQUITY SHARES (in Lakhs)

1,160.09 1,160.09 1,116.48 2,334.00 2380.33

TATA MOTORS FY03 FY04 FY05 FY06 FY07

EPS 9.66 23.34 34.08 35.57 43.76

OPERATING MARGIN 11.71 13.25 11.25 10.68 11.71

NET PROFIT MARGIN 3.29 6.10 7.02 7.35 6.94

RETURN ON NET WORTH 12.32 22.98 30.12 24.77 24.67

PAT (cr) 308.83 820.18 1,232.91 1,361.65 1,686.31

NO OF EQUITY SHARES (in Lakhs)

3,197.84 3,529.58 3,617.52 3,828.34 3,853.74

Page 13: MAHINDRA & Mahindra analysis

STOCK PERFORMANCE OF M&M ON BSESTOCK PERFORMANCE OF M&M ON BSE

Source: BSESource: BSE

Page 14: MAHINDRA & Mahindra analysis

WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS

Page 15: MAHINDRA & Mahindra analysis

CURRENT ASSETS CURRENT ASSETS

Page 16: MAHINDRA & Mahindra analysis
Page 17: MAHINDRA & Mahindra analysis
Page 18: MAHINDRA & Mahindra analysis
Page 19: MAHINDRA & Mahindra analysis
Page 20: MAHINDRA & Mahindra analysis

OUTLOOKOUTLOOK

AUTOMOBILE INDUSTRY MOVING IN TANDEM WITH GDP

INDIAN GOVT APPROVES AGGRICULTURAL CREDIT OF 237 Lac CRORE

RISK & CONCERNS

ENVIRONMENT & EMMISSION NORMS

FLUCTUATION IN FOREX RATES

Page 21: MAHINDRA & Mahindra analysis

THANK YOU