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    MAHINDRA & Mahindra Analysis

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    Raghav
    The document provides information on key players in the Indian auto industry including major automotive companies like Tata Motors, Mahindra & Mahindra, Toyota, and suppliers like Bosch, Denso, Valeo. It also discusses factors driving growth in the Indian auto industry such as overall economic growth, increasing income levels, export competitiveness. The core business activities of the industry are listed as automotive sector, farm equipment sector, information technology, and infrastructure. Lastly, it outlines the capital structure analysis process and how it relates to decisions around raising funds, debt-equity mix, and optimal structure.

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    MAHINDRA & Mahindra Analysis

    Uploaded by

    Raghav
    6K views21 pages
    The document provides information on key players in the Indian auto industry including major automotive companies like Tata Motors, Mahindra & Mahindra, Toyota, and suppliers like Bosch, Denso, Valeo. It also discusses factors driving growth in the Indian auto industry such as overall economic growth, increasing income levels, export competitiveness. The core business activities of the industry are listed as automotive sector, farm equipment sector, information technology, and infrastructure. Lastly, it outlines the capital structure analysis process and how it relates to decisions around raising funds, debt-equity mix, and optimal structure.

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    MAHINDRA & Mahindra analysis

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    The document provides information on key players in the Indian auto industry including major automotive companies like Tata Motors, Mahindra & Mahindra, Toyota, and suppliers like Bosch, Denso, Valeo. It also discusses factors driving growth in the Indian auto industry such as overall economic growth, increasing income levels, export competitiveness. The core business activities of the industry are listed as automotive sector, farm equipment sector, information technology, and infrastructure. Lastly, it outlines the capital structure analysis process and how it relates to decisions around raising funds, debt-equity mix, and optimal structure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT or read online from Scribd
    Download as ppt
    6K views21 pages

    MAHINDRA & Mahindra Analysis

    Uploaded by

    Raghav
    The document provides information on key players in the Indian auto industry including major automotive companies like Tata Motors, Mahindra & Mahindra, Toyota, and suppliers like Bosch, Denso, Valeo. It also discusses factors driving growth in the Indian auto industry such as overall economic growth, increasing income levels, export competitiveness. The core business activities of the industry are listed as automotive sector, farm equipment sector, information technology, and infrastructure. Lastly, it outlines the capital structure analysis process and how it relates to decisions around raising funds, debt-equity mix, and optimal structure.

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    Download as PPT or read online from Scribd
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    Players: Indian auto

    • GM industry • Tata Motors


    • Toyota • Mahindra &
    • Ford Indian Mahindra
    • Hyundai Auto • Bajaj Auto
    • Suzuki • TVS Motors
    • Honda Industr • Hero Honda
    • Skoda Global y Indian • Bajaj Tempo
    • Volvo OEM • Ashok Leyland
    OEM
    • Mercede
    s

    • Delph Global Indian • Bharat


    Supplier Forge
    i Suppli
    • Sundram
    • Viste ers Engineeri s
    Fasteners
    on ng & • Rane Group
    • Bosch Developm • Shriram
    • Denso ent Pistons
    • Valeo • RICO Auto
    • Thyss • Sono Koyo
    en Steering
     Overall
    Governm
    ent economic
    Policies growth

    New Indian Increas 


    ing
    Growth in
    Income
     Shorter life
    produc
    t
    Automoti consu
    levels
    mer
    cycle launch
    es
    ve deman
     Easier
    financing
    d
    Industry
     Export
    Competitiveness Cost
     Reduced cost Competitiven
    ess
    to consumer
     India emerging as a
    manufacturing hub
    CORE BUSINESS ACTIVITIES

     AUTOMOTIVE SECTOR

    FARM EQUIPMENTS
    SECTOR

    INFORMATION
    TECHNOLOGY

    INFRASTUCTURE
    CAPITAL STRUCTURE
    ANALYSIS
    CAPITAL BUDGETTING
    DECISION
    NEED TO RAISE
    FUND

    CAPITAL STRUCTURE
    DECISION

    EXISTING CAPITAL DESIRED DEBT-


    PAYOUT POLICY
    STRUCTURE EQUITY MIX

    EFFECT ON
    EFFECT ON RISK
    RETURN

    EFFECT ON COST OF
    CAPITAL
    OPTIMUM CAPITAL
    STRUCTURE

    VALUE OF THE FIRM

    CAPITAL STRUCTURE DECISION PROCESS


    Leverage

    In year 05-06 There was a


    bonus issue (1:1)
    RATIO ANALYSIS

    FY03 FY04 FY05 FY06 FY07

    EPS 7.61 26.46 43.83 25.61 40.38

    OPERATING 8.21 10.47 10.90 10.71 11.45


    MARGIN
    NET PROFIT 3.79 6.88 7.56 10.28 10.34
    MARGIN
    COVERAGE 3.68 8.46 29.94 39.60 77.85
    RATIO
    RETURN ON NET 5.82 17.53 24.79 20.77 27.28
    WORTH
    PAT (cr) 88.25 306.91 489.39 597.72 961.28

    NO OF EQUITY 1,160.09 1,160.09 1,116.48 2,334.00 2380.33


    SHARES (in
    Lakhs)
    M&M 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

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


    (in Lakhs)

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


    (in Lakhs)
    STOCK PERFORMANCE OF M&M ON BSE

    Source: BSE
    WORKING CAPITAL
    ANALYSIS
    CURRENT ASSETS
    OUTLOOK

    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


    THANK
    YOU

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