Mahindra Mahindra Research Report 1697198304

Mahindra & Mahindra Ltd.
Analysis Report
Prepared by Faizan Nezami, CMA

Disclaimer: It is an academic research project and not an investment advice by
any means. The author is not liable any potential loss & doesn’t hold any share.
Company and Economy Overview:
About a Company: Stock Info (As on 11/11)
Mahindra & Mahindra Limited (M&M) is an Renowned Indian NIFTY 1556
multinational automotive manufacturing corporation headquartered 52 Week High/Low (INR) 1670/1123
in Mumbai. It was established in the year 1945 with as Mahindra & Market Cap (INR Cr) 193493
Mohammed and later renamed Mahindra & Mahindra. Dividend Yield (%) 1.04
It is the part of Mahindra Group which is various segments like Tech, Shareholding Pattern:
Automotive, Finance, Farm & Farm Equipment, Etc and M&M is the Promoters 19.37%
Flagship Company. FIIs 40.14%
DIIs 26.89%
M&M produces mobility products and farm solutions ranging from Public 9.71%
SUVs, Passenger Vehicles, Pickups, Commercial vehicles and Others 3.83%
Tractors, EVs, 2Ws, Gensets and Construction equipment. Its major
M&M Stock Price (Last 1 Year):
competitors in the Indian market include Maruti Suzuki & Tata
Motors. 1800
1600
M&M is one of India's Largest PV, CV producing company and the
largest manufacturer of tractors in the world by volume. The 70% of 1400
the revenue comes from the Automotive and 30% is from Farm &
1200
Farm Equipment.
1000
M&M is the market leader in the Tractors, E3Ws and LCV segment
800
(<3.5 Tons). The company enjoys nearly 13% market share in the Nov-22 Feb-23 May-23 Aug-23
total domestic auto industry. The Automotive sector did total sales
of 7L vehicles in FY23 (50% increase from FY22). NIFTY 50 Stock Returns:
20000
Indian Economy:
FY23 was a year of uncertainty and recovery Indian economy. 19000
Uncertainty is present due to Geopolitical tensions, Wars, Inflation,
Interest rate, etc. Indian economy had stayed strong and grown at a 18000
pace which is higher than a lot of countries. Inflation, Supply Chain
Issues, Crude oil prices and Commodity prices remain uncertain for 17000
future, given the geopolitical hostilities and rebound in demand
from countries reopening from lockdowns. 16000
Nov-22 Feb-23 May-23 Aug-23
Indian Economy in 2030 will be around $ 6-7 Tn growing at 5-6% in
long term. Drivers will be Economic growth, Government policies, Financials Metrics* (in Cr INR):
Infrastructure, Increasing income, Rapid urbanization, Etc. Particluars FY23 (A) FY24 (E) FY25 (E)
Global Economy: Sales 121269 140672 163178.96
YoY Growth (%) 34% 16% 16%
It is recovering from the powerful blows of the pandemic and EBITDA 20285 23936 28724
Russia’s war. Recent Geopolitical tensions and War will impact Crude YoY Growth (%) 16.7% 18% 20%
PAT 10282 11254 14686
Oil prices and supply chain disruptions in a short period of time. PAT Margin (%) 8.48% 8% 9%
ROE 18% 16% 15%
Tightening of monetary policy by most central banks has started to EPS 92 101 111
control inflation. Conversely, the rapid rise in interest rates has P/E 17.00 18.00 16.00
EV/EBITDA 13.5x 12.5x 9.0x
contributed to distress in parts of the financial system. The global P/B 3.4x 3.8x 4.0x
economy is expected to grow at a rate of 2-3% (IMF). *Assumptions are taken.
Stock Price – Analysis LTM
Nifty 50 (Monthly Average)

20000
19500 19754
19638
19546
19000 19189 19254
18500 18758
18534
18000
18105 18065
17500 17662
17304 17360
17000
16500
16000
Mahindra & Mahindra (Monthly Average)

1700
1600
1582
1500 1531 1532
1516
1400
1300 1356
1317
1280
1260
1200 1237 1233
1170 1183
1100
1000
900
800
Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 3,698.0 7,510.4 5,315.5 127.0 1,812.5 6,577.3 10,281.5
Average Shareholder Equity 28,135.2 33,276.4 38,379.3 39,976.4 40,775.6 44,352.3 51,744.2
Return on Equity 13.14% 22.57% 13.85% 0.32% 4.45% 14.83% 19.87%
ROE - DuPont Equation

Net Profit 3,698.0 7,510.4 5,315.5 127.0 1,812.5 6,577.3 10,281.5
Revenues 83,773.1 92,094.0 104,720.7 93,764.5 74,277.8 90,170.6 121,268.6
Net Profit Margin (A) 4.41% 8.16% 5.08% 0.14% 2.44% 7.29% 8.48%
Revenue 83,773.1 92,094.0 104,720.7 93,764.5 74,277.8 90,170.6 121,268.6

Average Total Assets 106,843.7 125,102.4 149,129.0 163,802.4 165,342.2 168,678.4 188,335.8
Asset Turnover Ratio (B) 78.41% 73.61% 70.22% 57.24% 44.92% 53.46% 64.39%
Average Shareholder Equity 28,135.2 33,276.4 38,379.3 39,976.4 40,775.6 44,352.3 51,744.2
Equity Multiplier (C) 3.8X 3.8X 3.9X 4.1X 4.1X 3.8X 3.6X
Return on Equity (A*B*C) 13.14% 22.57% 13.85% 0.32% 4.45% 14.83% 19.87%
Return on Assets (ROA)

Net Profit 3,698.0 7,510.4 5,315.5 127.0 1,812.5 6,577.3 10,281.5
Return on Assets 3.46% 6.00% 3.56% 0.08% 1.10% 3.90% 5.46%
ROA - DuPont Equation

Net Profit 3,698.0 7,510.4 5,315.5 127.0 1,812.5 6,577.3 10,281.5
Revenues 83,773.1 92,094.0 104,720.7 93,764.5 74,277.8 90,170.6 121,268.6
Net Profit Margin (A) 4.41% 8.16% 5.08% 0.14% 2.44% 7.29% 8.48%
Revenue 83,773.1 92,094.0 104,720.7 93,764.5 74,277.8 90,170.6 121,268.6

Asset Turnover Ratio (B) 0.8X 0.7X 0.7X 0.6X 0.4X 0.5X 0.6X
Return on Asset (A*B) 3.46% 6.00% 3.56% 0.08% 1.10% 3.90% 5.46%
Dupont Summary
• ROE of Mahindra has been good from long come except 2020 due to COVID and currently it is at 19.87% as of
31 March 2023. It was due to great performance by the Auto and Farm sector.
• They have recently even touched the highest EBIT margin of 7.5% which was last hit in FY19.
• The major catalyst is Equity multiplier and they have been generating good profits since past couple of years
due to strategic changes and doing big capex amount .
• They have a large number of assets but couldn't use the Assets efficiently which means operating leverage will
kick in future driving up the profits.
• ROA of Mahindra & Mahindra rose from 2.56% in FY2019 to 5.46% in FY2023 due to the high net profit. The
Farm sector margins are higher than the Auto by 5%-6% which also contributes. This year the services also did
pretty good expect Tech Mahindra.
Disclaimaer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not
liable for any losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any
investments. Due to Availability of Data there can be some errors but I have tried to do my best. :)
Altman's Z Score Analysis Calculation
Working Capital / Total Assets

Working Capital ₹ 38,609 ₹ 46,204 ₹ 58,821 ₹ 66,306 ₹ 64,177 ₹ 61,946 ₹ 82,232
Total Assets ₹ 113,835 ₹ 136,369 ₹ 161,889 ₹ 165,716 ₹ 164,968 ₹ 172,388 ₹ 204,283
Working Capital / Total Assets (A) 33.92% 33.88% 36.33% 40.01% 38.90% 35.93% 40.25%
Retained Earnings / Total Assets

Retained Earnings ₹ 15,831 ₹ 27,824 ₹ 30,757 ₹ 30,908 ₹ 33,668 ₹ 39,174 ₹ 48,188
Total Assets ₹ 113,835 ₹ 136,369 ₹ 161,889 ₹ 165,716 ₹ 164,968 ₹ 172,388 ₹ 204,283
Retained Earnings / Total Assets (B) 13.91% 20.40% 19.00% 18.65% 20.41% 22.72% 23.59%
EBIT / Total Assets

EBIT ₹ 7,921 ₹ 9,946 ₹ 11,215 ₹ 7,588 ₹ 10,298 ₹ 11,180 ₹ 15,928
Total Assets ₹ 113,835 ₹ 136,369 ₹ 161,889 ₹ 165,716 ₹ 164,968 ₹ 172,388 ₹ 204,283
EBIT / Total Assets (C) 6.96% 7.29% 6.93% 4.58% 6.24% 6.49% 7.80%
Market Cap / Long Term Liabilities

Market Cap 116,560 114,320 74,080 97,920 111,840 150,080 183,840
Long Term Liabilities 48,762 55,898 70,848 82,092 80,625 77,605 92,247
Market Cap / LTL (D) 2.4X 2.0X 1.0X 1.2X 1.4X 1.9X 2.0X
Sales / Total Assets

Sales 83,773 92,094 104,721 93,765 74,278 90,171 121,269
Total Assets 113,835 136,369 161,889 165,716 164,968 172,388 204,283
Sales / Total Assets (E) 0.7X 0.7X 0.6X 0.6X 0.5X 0.5X 0.6X
Altman's Z Score
Final Score 3.00 2.84 2.20 2.17 2.24 2.65 2.86
Financial Health Strong Grey Zone Grey Zone Grey Zone Grey Zone Grey Zone Grey Zone
AltMan Z Score Summary

• It is not good for the company as it requires more WC to run it's day to day operations. It also means that the company
isnt managing it current assets and liabilities efficiently but since the company is growing high WC can be somewhat
justified.
• Management is doing good job in running the business the reserves are rising which means they are generating good
profits and making the shareholder wealthy but the rate at which the assets are increasing while the sales are less.
• The increasing trend of EBIT/TA shows that with increasing revenue even the operational profits (After D&A) are rising.
• In 2023 on 1 rs of assets Mahindra & Mahindra is able to generate 0.6 Rs of sales.
• According to AltMan's Z Score, Company needs tangible work to be done which can be seen in their strategic actions.
Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is
not liable for any losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making
any investments. Due to Availability of Data there can be some errors but I have tried to do my best to bring in the correct data.
Con-Call Analysis Q1FY’24 - Highlights
Summary: Able to fulfill commitments and the future plan is tangible. Consolidated PAT is up by 60% YoY which is
3508 Cr. Auto and Farm are capitalizing on leadership and Mahindra Finance and Services are doing good but Tech
Mahindra needs some fixing. The Stock has provided a CAGR of 14% for past 10 Years. Growth rate is 13-14%.
Capex and Production:
• The production has increased in the auto sector and is working near the full capacity and issue of semi-
conductors have been resolved but can’t be sure. Operating leverage is driving the margins up.
• M&M will continue to keep investing if the IRR is higher than ROI and the demand for products is great.
Future Plans:
• EV and scale up of capacity to 49000 units per month is on track. Continue to produce and launch a lot of ICE
vehicles since they are a major driver of the revenue and the Profits.
• Management will maintain a 18% ROE threshold and 15-20% growth in EPS. More transparency in accounts.
• Auto, Farm and Services have generated very healthy cash flows. There will be further launches in the real
estate business and the opportunity in hospitality sector is booming and demand is increasing.
Past Performance:
• Strong volumes have been put up while maintaining the market leadership is respective segments. Very strong
demand 48K booking per month with some supply chain issues for engine parts and airbags.
• 20.2% SUV Revenue Market Share. 49.1% LCV<3.5Tn. Have been able to hit the highest previous margins of
FY19 of 7.5% in Q1F24 in spite of completely changed dynamics compared to 2019.
• Substantial capex in ICE after 25-27 and we are not going make our market leadership tag go for a toss. EVs
launches from 2025 but we expect it to penetrate 20-30% of the product mix in the auto sector in long term.
• MFSL Asset’s growth is increasing and so is the asset quality. AUM at 87K Cr (28% jump). Tech Mah has been in
bad state, Leadership is changing and the demand has been muted. Other domains are doing good.
EV:
• Market leadership in E-3W with (65.5% MS). Highest booking in Q1F24. M&M will launch 5 EV SUVs in future
and will source batteries/ infrastructure from 3rd parties. Available by Dec’24 starting with E8.
RBL:
• Bought 3.53% Stake which can go up to 9.9% for Rs. 400 CRs in RBL Bank at a 0.9 times P/B. It is a very long
term strategic investment. Done to understand banking deeply as they have a company worth 40K Cr.
• We choose RBL because of its great management and its fits our investment criteria very well.
• It is very calculated investment with minimal risk of losing the capital.
Growth Gems:
• We see a very strong potential for growth and two of them have demonstrated a 5x growth already.
Investment Philosophy:
• We won’t try to invest in a business which isn’t our core one and out of the box for us unless it gives us major
synergies with our group companies. The capital budgeting is strict for inhouse firms.
Con-Call Analysis Q4FY’23 - Highlights
Summary: Auto and Farm segment have been good in comparison with FY22. The order book has been pretty
strong. All other verticals like Tech, Finance, Hotels, Logistics, Etc has also witnessed growth and strong numbers in
the bottom line. Cash flows are strong and the company is repaying the debt back and is also capex in ICE and EV.
ICE are at least 70% of the volume and will continue for even six, seven years from now.
Capex and Production:
• Mahindra is planning to invest 16000 Cr (Approx) in near term and to expand the EV establishment with the
objective to build 20-30% of their portfolio in around 4 years.
• The company wants to produce 49000 SUVs per month but currently they are limited to around 35000/Month.
• Acquired 3.5% stake for 400 Cr in RBL Ltd to understand Banking sector deeply and it is a long term investment.
Future Plans:
• A lot of investments in the EV sector and PP&E in the coming years is expected with launching 5 new EV SUVs.
• Company wants to reinvest in the business instead of giving out dividends because the investments that we are
planning will churn out more ROE and ROI in the future and our results show that.
• M&M is now committed to maintaining fiscal and operating discipline by retaining market leadership,
expanding internationally strategically, doing capex, removing bottlenecks, launching EVs, and overall growth.
• Going to produce and launch ICE Vehicles and Lightweight Tractors to cater to every customer.
• Expanding international operations strategically in Tractor & FES to strengthen the brand position.
Farm & Auto:
• Tractor market share is 41.2%. New launches both High and Low HP under Swaraj & OJA to appeal to young
customers. Auto Demand has been great due to various new launches specifically THAR, XUV & Scorpio. 57,000
new bookings every month against supply of 33,000.
• Loss of profits due to (Around 10000 Units in Qtr) shortage of Semiconductors and Supply chain issues. Margin
as a % is actually reasonably close to what it was at FY19.
• The firm is growing its profitability margins. The E-3W is also booming with retaining the leader position. Going
to spin off Last Mile Mobility into an independent company.
• Farm Equipment Sector saw a 15% growth throughout the year and have 41.2% market share (Market Leader).
Financial Performance:
• Consolidated Profit after Tax crossed Rs 10000 Cr (56% Jump YoY) for the first time and Revenue was close to
Rs. 121000 Cr (33% Jump YoY). The standalone business revenue grew by 47% while Auto and Farm grew by
63% and 22% respectively.
• The volumes have been pretty good while maintaining the market leadership is respective segments.
• Mahindra Finance doubled its PAT while the other businesses are also growing and generating cash flows.
Strategy:
• The demand for the products is very strong with close to 281K open bookings but the product delivery is late
due supply chain issues for engine parts and airbags and semi conductors but it’s improving.
• Have shut down a lot of under performing businesses and the focus is now on the core sectors.
• M&M is diversifying its focus to Farm Equipment & Machinery segment since they want to grow more.
• M&M is not working on hydrogen-based technology. However, they are working on Blended fuels.
On a larger perspective the company is growing and will want to grow further by launching new and innovative
products by increasing capex, new launches, focus on market leadership and providing value driven products.
Annual Report FY23 - Analysis
Global Economy:
• Global economy is recovering from the blows of the pandemic and of Russia’s war. China has reopened its
economy. Supply-chain disruptions are unwinding, while the dislocations to energy and food markets caused by
the war are receding.
• Massive tightening of monetary policy by most central banks have been done to control inflation. Conversely,
the rapid rise in interest rates has contributed to distress in parts of the financial system raising financial
stability concerns.
• Risk of price rise in crude oil prices is unlikely to rise in near future due to slowing global economy.
• Global growth is projected to 2-3% in 2023 and 2024 (IMF).
Indian Economy:
• FY23 was a year of uncertainty, recovery and economic resilience for India. Uncertainty due to geopolitical
tensions and a war in Ukraine set the tone even before the fiscal year started.
• Sustained strong FDI inflows have helped to reduce India's external account vulnerability and have contributed
to boost India's foreign exchange reserves over the past decade.
• Indian economy will likely grow over FY24, but uncertainties around central banks globally and oil price
movements pose downside risks. Inflation will be affected by both global and domestic factors.
• Crude oil and commodity prices remain uncertain for future, given the geopolitical hostilities and rebound in
demand from countries reopening from lockdowns. Global financial markets are volatile. Food inflation can be
witnessed. CPI inflation is projected to average 5.2% in FY 23-24. (MPC of RBI)
• The Size of Indian Economy in 2030 will be close to $ 6-7 Tn with a growth rate of 5-6% in long term which is the
fastest in the global economies. The drivers will be by Robust economic growth, Focused Government policies,
Infrastructure development, Increasing income levels, Rapid urbanization, Rise in the middle-class income and
rising young population.
• Stronger dollar (US Fed’s Policy Tightening), Higher commodity prices, Energy shortages and shocks and
Inflation accentuated external difficulties for emerging economies including India.
• Due to high penetration and increasing income levels with young and aspirational population India will see a
substantial growth in the coming future and will grow faster than most of the economies.
Local Industry:
• ₹ 8.7 L Cr Indian automobile industry is expected to reach ₹ 16- 18 L Cr by 2026. Past few years were bad but
the Auto sector is rising. In FY23 Indian automotive industry (except 2W) grew by 32%.
• India is a well-recognized Automobile manufacturing hub worldwide because of its low-cost production.
• India is 4th largest producer of Automobiles in the world, with avg. annual production > 4 Mn Motor Vehicles.
• Due to the Rise in the middle-class income and rising young population, Rising demand for automobiles,
Increase in Exports the India Automobile market is expected to witness strong growth.
• Automobile sector accounts for 7.1% of India's GDP and 49 % of manufacturing GDP. Hence, the automobile
sector in India is a significant driver of macroeconomic growth and technological advancement.
• PV segment posted its highest ever domestic sales surpassing the previous peak in FY 2018-19 while the CV
segment posted its second highest domestic sales and was close to the previous peak of FY 2018-19.
• Indian Auto industry sales (excl. 2-W) have recorded highest ever sales of 5.3 Mn units with 15.7% YoY growth.
• The India Automotive Market is concentrated, with the Top 5 players having majority market share in all the
segments which are Maruti Suzuki, Tata Motors, Hyundai, M&M, and Honda. The 2-W Market is also tough ,
with some firms occupying the majority share of market includes Hero, Honda, TVS, Bajaj, and RE.
• The long-term growth outlook for the Indian auto industry is positive.
• In FY23, Indian Auto Industry has shown double digit growth across all segments. PV have reached highest ever
mark with 3.89 Mn Units Sales while CVs are still below F19 levels by 4.5%.
Global Industry:
• The Global Auto Industry is recovering from COVID-19 impact and is down by 11% from an all time high in 2017.
• In CY 2022, worldwide sales of Passenger Cars and Commercial Vehicles increased to 81.6 million, a de-growth
of 1% over the Calendar Year 2021 sales of 82.7 million. Global Passenger Car sales reported a growth of 1.9%
and Commercial Vehicle sales reported a de-growth of 8.3%.
• In foreign countries the penetration of vehicles is much higher than the emerging economies so the future
growth opportunities is very miniscule there in comparison with India or developing countries.
• Global car manufacturing industry revenue in 2023 was around $ 2.56 Trillion and the CAGR is around 3-4%.
• The automotive industry contributes around 3% of the world’s total GDP output while in some countries it is
close to 6-7% of the GDP like in India and China. Autonomous and EV Sector is the driving the industry forward.
Mahindra & Mahindra:
• Mahindra with its cost restructuring exercises and efficiency improvements made significant savings in cost and
product innovations that enabled them to maintain profitable growth in the current economic scenario.
• M&M commands 12.6% market share during FY23 domestically in the automotive sector up from 10.7 in FY22.
They are the 4th largest PV company ,2nd largest CV company. They sold 6,66,349 automotives during the year
and recorded a growth of 54%.
• Swaraj ltd & SaangYong Motors became subsidiaries of M&M and LMM will be spun off as a independent firm.
• There are 140 subsidiaries, 25 JV and 28 associates in the Mahindra Group. The Company plans to capitalize on
its strengths and the upcycle across SUVs and CVs over the next few years. Of the 13 new launches, we plan to
launch 8 New EVs by 2027 that will comprise 20% of our volume.
• M&M has a comprehensive programme for development of new products and technologies which will enable it
to remain competitive in the market, cater to emerging customer expectations and meet any legislative
requirements. Along with Electrification M&M is also working on alternate fuels technology (Not Hydrogen).
• Mahindra has been rated AAA CRISIL, ICRA India Ratings and CARE for its Banking facilities. All have re-affirmed
the highest credit rating for your Company’s Short-Term facilities and Long Term. Mahindra continues to enjoy
the highest level of rating from all major rating agencies at the same time.
• Automotive and Farm Sectors along with Subsidiaries, Associate companies and JVs, achieved global sales of
1.12 Mn Vehicles and Tractors (6,97,494 vehicles and 4,24,276 tractors), a growth of 33.6% over the PY.
Risks:
• The competitive intensity in Indian Market way higher. M&M in investing in new products and focus on
delivering customer centric products with a value driven approach.
• Govt policies on emission norms affects the company in the short term but M&M is adaptable with successfully
transitioning to BS6 phase 2 emission norms across all its portfolio products well in time.
• Doing more Capex to increase the capacity. Built manufacturing capacity for the immediate future.
• Launch of EVs as late as Q4 FY25 can hamper their growth in the future leaving a lot of potential opportunities.
• Rise of commodity prices and increase in inflation can build pressure on the management to either raise the
prices or control costs aggressively which has been the case in the past.
• Supply chain issues, Shortage of Semi Conductors, Rain are the factors that directly impact Auto and Farm.
• Increase in cost of ownership due to hikes in commodity and fuel prices.
• Lots of options from the competitors in the respective vehicle segment which might cause a loss of potential.
• Long waiting period for M&M Cars can cause an issue with the customers who might want the cars early.
• Global inflation, Rise in crude oil prices, Stronger dollar, Supply chain issues, Energy shocks, Global financial
shocks, Energy issues and Rise in interest rates are some of the major headwinds for the auto sector globally.
Opportunities:
• In FY23, the Indian auto industry showed double digit growth across all segments. PV have reached new highest
ever mark with 3.89 million sales units while CV are still below FY19 levels by 4.5%.
• Policies by the government to boost consumption, aggressive government push for infrastructure-led growth,
and future potential growth of Indian Economy pegged at 6-7% shows the potential.
• Farm Equipment Sector: The mid to long-term outlook for the Indian tractor industry is positive. Several
initiatives taken by the Government are driving higher rural incomes.
• Higher diversification towards high value crops and agri accelerator fund to promote technological
advancement in agriculture, etc.
• Increase in allocation of Government budgets on infrastructure and rural development is likely to benefit
commercial demand.
• Demand for mechanization is also growing as shortage of agricultural labor will lead to increase in labor cost.
• An increasing trend of more farmers seeking technical inputs in agriculture also reflects the growth of
progressive farmers.
• Growth in past year (YoY): PV - 26.7%, UV - 34.5%, CV 34.3%, LCV Goods <3.5T - 23.9%, MHCV - 40.1%.
• EVs are the fastest growing segment globally and has grown at 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.
Income Statement:
• The EBITDA recorded an increase of 43.01% at Rs. 12,988 crores as against Rs. 9,081 crores in the previous year.
PAT increased by 34.47% at Rs. 6,549 crores as against Rs. 4,870 crores in the previous year.
• M&M recorded ₹ 85000 Cr from revenue from operations with ₹ 6548 of Net Profit (Before OCI) & an
standalone EPS of ₹ 54 while the consolidated was around ₹ 91. Out of the revenue 94.6% sales is domestic and
5.4% is from abroad.
• Revenue from operations is Rs. 1,21,269 crores in the current year as compared to Rs. 90,171 crores in the
previous year, registering an increase of 34.5%.
• The consolidated profit after tax after noncontrolling interests and exceptional items for the year is Rs. 10,282
crores as against Rs. 6,577 crores in the previous year, registering an increase of 56.3%.
Balance Sheet:
• The company with an asset side of ₹ 75,000 Cr (Standalone) maintains debt to equity ratio of 1.6.
• During the year, the Company incurred capital expenditure of Rs. 4,323 crores (previous year Rs. 3,349 crores).
The major items of capital expenditure were on new product development and capacity enhancement
• Long term debt has been repaid close to 3500 Cr while invested in Non current assets.
Cash Flow Statement:
• Cash flow from operations was of ₹ 9129 Cr since the auto, farm and services sector performed well and
brought in healthy amount of business.
• Cash flow from investing was negative there were a lot of Capex, Acquisitions in subsidiaries and Joint ventures.
Cash flow from financing was negative too since a lot of long term debt was repaid, Dividends paid, etc.
Future Growth Factors:
• For M&M a very well diversified product portfolio across multiple sectors which will act as a cushion to any
uncertainty in the future.
• Multiple automotive products and constant launching and innovating new products with a focused approach
will be contributing a lot to the growth of the company. Mahindra has also exceeded the investors
expectations by pushing out strong financial numbers depicting the above story.
• Great value for money products and in return strong demand from the customers. The craze is there for Thar,
XUV700, and Scorpio as we can see in the order book of almost 281K and the waiting time for the cars is also
around 12-18 months showing the demand.
• Inclusion of technological advancement and innovation in the FEP will also act as a tailwind.
• M&M closed a lot of their subsidiary which are either not touching 18% ROE target and which doesn’t hold
any potential strategical benefits in the future.
• A lot of capex and advancement is planned in the EV sector, they are the market leaders in the 3W EVs in
India. M&M Management is strategically improving the export and planning to capture a good market share
in abroad countries. They said they will target few geographies but they will try to capture substantial market
share in that specific country which is very focused approach to taking the business forward.
• Take all the growth gems to great heights and improve the margins across core businesses. Transformative
initiatives at Tech Mahindra & M&M Finance .
• The long-term growth outlook for the Indian tractor industry remains positive and with Mahindra being the
leader both Globally and in India with 42% MS. The key growth drivers that drove the Farm Segment were
affordability, New Products under Swaraj and Oja, Growing demand for mechanization, Newer technologies
and Government policies.
• The global tractor market is valued at around $60-80 Bn currently, and projected that by 2030, the size of
this market will increase by a CAGR of around 4-5%, reaching nearly $ 120 Bn.
• Indian automotive industry has been christened as a sunrise sector and champion industry due to the
immense contribution the industry makes to the Indian economy.
• Going forward these factors will affect the demand of automobiles in FY24: Shortage of semi conductors,
Govt policies, Govt push for infrastructure growth, Increase in prices, High commodity prices (Steel, Rubber,
Semi-Conductors), Inflation, Oil prices, Interest rates, etc.
• The future growth rate of the Indian Auto Sector will be around 5-6% while there will be some outliners Like
M&M, Kia, Maruti, TATA Motors, Etc.
• The future also depends on the macro economic and geo-political situations as it can create some material
problems for the company like shortage of semi conductors hitting the production, inflation in commodities
rise in crude oil prices which will impact the vehicle sales, rise in interest rates and so on.
EV SECTOR:
• EVs currently occupy 2.4 per cent of the total sales of Indian market. The sales of EVs in India jumped 137
per cent to 48,000 units in H1 CY23 as compared to H1 CY22.
• A lot of companies are entering in this segment and the government is also supporting through it’s various
schemes like PLI.
• Tata Motors leads Indian EV market with a market share of 72%. The contributors to this included high sales
numbers of Tiago, Nexon and Tigor models.
• Tata has already announced its plans to introduce four more EVs by 2024. According to the data, Tata
Motors is followed by MG Motor with a share of 10.8 per cent and Mahindra at 9 per cent.
• EVs currently occupy 2.4 per cent of the total sales of Indian Market. The sales of EVs in India jumped 137
per cent to 48,000 units in HICY23 as compared to H1CY22
• A lot of companies are entering in this segment and the government is also supporting through it’s various
schemes like PLI.
• Tata Motors leads Indian EV market with a market share of 72%. The contributors to this included high sales
numbers of Tiago, Nexon and Tigor models.
• Tata has already announced its plans to introduce four more EVs by 2024. According to the data, Tata
Motors is followed by MG Motor with a share of 10.8 per cent and Mahindra at 9 per cent.
• In August 2022, M&M announced the Born Electric Vision, which aims to bring electric offerings to the
Company's portfolio. On 15 August, 2022, your Company unveiled five electrifying SUVs under two brands
based on the Born Electric INGLO platform at the M.A.D.E Design Studio in the UK. The manifestation of
these two brands has been showcased via five e-SUVs: the XUV.e8, XUV.e9, BE.05, BE.07, and BE.09. The
first four of these are planned to be launched between 2024 and 2026.
• In FY23, Mahindra sold 46,109 EVs (2,416 4W and 43,693 3W) as against 17,006 EVs (61 4W and 16,945 3W)
in the previous year. Mahindra is committed to achieve sustainability targets with strong growth plan.
ROIIC
• ROIICS shows how profitable is each additional (Incremental) unit of capital investment could be which can be
done in the company. It is used in similar ways to the incremental capital output ratio.
• Return on incremental invested capital (ROIIC) is an extended version of Return on Investment Capital (ROIC),
Which in itself is an extension of Return on Investment, ROI measures a company’s profitability by dividing the Net
Profit by the Investment in the company (Debt + Equity Capital)
• A company uses its ROIIC to express the relationship between its capital investments and the rate of return on
those investments.
ROIIC PROFILING
• ROIIC measures capital allocation efficiency by
Years Net Income Capital Employed ROIIC comparing the change in a company’s NOPAT
Mar-13 ₹ 9,976 ₹ 70,239 N.A. relative to its invested capital.
Mar-14 ₹ 3,845 ₹ 51,951 (21%)
Mar-15 ₹ 3,137 ₹ 58,856 45% • Basically ROIIC calculates the incremental return
generated on the incremental capital investment.
Mar-16 ₹ 3,148 ₹ 63,518 68%
Mar-17 ₹ 3,698 ₹ 73,886 36% • It tells the investors how efficiently that
Mar-18 ₹ 7,510 ₹ 86,126 61% profitability is earned per rupee of additional
Mar-19 ₹ 5,315 ₹ 102,097 33% company capital investments.
Mar-20 ₹ 127 ₹ 114,151 1%
• Warren Buffett – “The best business to own is one
Mar-21 ₹ 1,812 ₹ 109,355 (38%) that over an extended period can employ large
Mar-22 ₹ 6,577 ₹ 113,610 155% amounts of incremental capital at very high rates
Mar-23 ₹ 10,282 ₹ 137,339 43% of return”.
ROIIC Profiling Net Income and Capital Employed

Cumulative Net Income 55430 ₹ 160,000
Incremental Capital 67100 ₹ 140,000
Reinvestment Rate (Avg of Years) 38.34% ₹ 120,000
₹ 100,000
Incr Increase in Net Income 306
₹ 80,000
ROIIC 0.46%
₹ 60,000
Intrinsic Compounding Rate 0.17%
₹ 40,000
₹ 20,000
Stock CAGR 10 Years 14%
₹0
Stock CAGR 5 Years 11%
Key Financial Ratios:
Shareholding Pattern:
40.14%
40.0%
30.0%
26.89%
19.37%
20.0%
9.71%
10.0%
3.83%
0.0%
Promoters FIIs DIIs Public Others
Sales:
140,000
140,000
121,269
121,269
120,000
120,000
103,015
103,015
100,000 93,765
93,765
100,000 90,770
90,770 89,257
89,257
82,069
82,069
80,000 73,265
80,000 66,846 68,944 73,265
61,364 66,846 63,764 68,944
63,764
60,000 61,364
60,000
40,000
40,000
20,000
20,000
0
EBITDA:
25,000
20,257
20,000
14,683
15,000 13,666
12,564
11,215
9,946
10,000 7,921
5,000
2,754
1,778
730
-106
0
-5,000
EBT:
16,000
14,060
14,000
12,000
10,326
10,000 9,362
8,871
8,000
6,350
5,580 5,820
6,000 5,348
4,313 4,239
4,000
1,655
2,000
PAT (Net Profit)

11,000
10,282
9,000
7,510
7,000 6,577
5,315
5,000 4,667
4,099
3,698
3,137 3,211
3,000
1,812
1,000
127
-1,000
ROA ROCE
7.00% 10.00%
9.00%
6.00%
8.00%
5.00% 7.00%
6.00%
4.00%
5.00%
3.00% 4.00%
3.00%
2.00%
2.00%
1.00%
1.00%
0.00% 0.00%
-1.00%
-1.00%
ROE Net Profit Margin (%)
25.00%
10.0%
20.00%
8.0%
15.00%
6.0%
10.00% 4.0%
5.00% 2.0%
0.00% 0.0%
-5.00% -2.0%
Segmental Revenue:
Automotive
3.20% Farm Equipment

Others
28.20%
68.60%
Debt to Equity Ratio Earning Per Share (Standalone)
0.25 60.00
54.70
0.22
50.00
0.2
0.17 40.29 40.73
40.00
0.15
0.11 30.00
0.1 0.09
0.08
20.00
11.16
0.05 8.24
10.00
0 0.00
FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023
Annual Income Statement (Consolidated):

Particulars (₹ Crs.) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Revenue ₹ 74,001 ₹ 71,448 ₹ 75,841 ₹ 83,773 ₹ 92,094 ₹ 104,721 ₹ 75,382 ₹ 74,278 ₹ 90,171 ₹ 121,269
Less: COGS ₹ 45,115 ₹ 42,972 ₹ 45,232 ₹ 49,447 ₹ 52,408 ₹ 59,300 ₹ 52,552 ₹ 38,476 ₹ 51,979 ₹ 73,988
Gross Profit ₹ 28,886 ₹ 28,476 ₹ 30,610 ₹ 34,326 ₹ 39,686 ₹ 45,421 ₹ 22,830 ₹ 35,802 ₹ 38,192 ₹ 47,281
Gross Margin (%) 39.0% 39.9% 40.4% 41.0% 43.1% 43.4% 30.3% 48.2% 42.4% 39.0%
Less: SG&A ₹ 18,716 ₹ 19,683 ₹ 20,528 ₹ 23,591 ₹ 26,460 ₹ 30,214 ₹ 12,672 ₹ 24,315 ₹ 23,509 ₹ 26,996
EBITDA ₹ 10,170 ₹ 8,793 ₹ 10,082 ₹ 10,735 ₹ 13,226 ₹ 15,207 ₹ 10,158 ₹ 11,487 ₹ 14,683 ₹ 20,285
EBITDA Margin (%) 13.7% 12.3% 13.3% 12.8% 14.4% 14.5% 13.5% 15.5% 16.3% 16.7%
Less: Depreciation ₹ 2,170 ₹ 2,124 ₹ 2,442 ₹ 2,813 ₹ 3,280 ₹ 3,991 ₹ 3,367 ₹ 3,378 ₹ 3,508 ₹ 4,357
EBIT (Operating Inc) ₹ 8,000 ₹ 6,669 ₹ 7,640 ₹ 7,922 ₹ 9,946 ₹ 11,216 ₹ 6,791 ₹ 8,109 ₹ 11,176 ₹ 15,928
Operating Profit (%) 10.8% 9.3% 10.1% 9.5% 10.8% 10.7% 9.0% 10.9% 12.4% 13.1%
Less: Interest ₹ 2,954 ₹ 3,157 ₹ 3,368 ₹ 3,648 ₹ 3,987 ₹ 5,021 ₹ 6,021 ₹ 6,102 ₹ 5,018 ₹ 5,830
Profit Before Tax (PBT) ₹ 5,342 ₹ 4,313 ₹ 5,672 ₹ 6,350 ₹ 10,326 ₹ 8,871 ₹ 1,655 ₹ 3,158 ₹ 9,362 ₹ 14,060
Less: Taxes ₹ 1,496 ₹ 1,720 ₹ 2,118 ₹ 2,300 ₹ 2,368 ₹ 2,854 ₹ 1,976 ₹ 1,646 ₹ 2,109 ₹ 2,686
Profit After Tax (PAT) ₹ 3,845 ₹ 2,593 ₹ 3,555 ₹ 4,051 ₹ 7,958 ₹ 6,017 -₹ 321 ₹ 1,512 ₹ 7,253 ₹ 11,374
Net Profit Margin 5.2% 3.6% 4.7% 4.8% 8.6% 5.7% -0.4% 2.0% 8.0% 9.4%
Source: Screener, ROIC, Annual Report
Earnings Metrics:
EBITDA ₹ 10,170 ₹ 8,793 ₹ 10,082 ₹ 10,735 ₹ 13,226 ₹ 15,207 ₹ 10,158 ₹ 11,487 ₹ 14,683 ₹ 20,285
EBITA ₹ 8,000 ₹ 6,669 ₹ 7,640 ₹ 7,922 ₹ 9,946 ₹ 11,216 ₹ 6,791 ₹ 8,109 ₹ 11,176 ₹ 15,928
EBIT ₹ 8,000 ₹ 6,669 ₹ 7,640 ₹ 7,922 ₹ 9,946 ₹ 11,216 ₹ 6,791 ₹ 8,109 ₹ 11,176 ₹ 15,928
Basic EPS ₹ 35.1 ₹ 20.9 ₹ 28.6 ₹ 32.6 ₹ 64.0 ₹ 48.4 -₹ 2.6 ₹ 12.2 ₹ 58.3 ₹ 91.5
Dividend Amount ₹ 827 ₹ 708 ₹ 649 ₹ 807 ₹ 815 ₹ 925 ₹ 261 ₹ 972 ₹ 1,285 ₹ 1,808
Effective Tax Rate 28.0% 39.9% 37.3% 36.2% 22.9% 32.2% 119.4% 52.1% 22.5% 19.1%
Valuation Ratios:
EV/LTM Total Revenue 1.20 x 1.60 x 1.40 x 1.40 x 2.30 x 1.30 x 1.00 x 2.50 x 2.00 x 1.90 x
EV/LTM EBITDA 9.31 x 14.44 x 11.46 x 10.86 x 21.54 x 9.10 x 8.52 x 14.60 x 15.13 x 10.81 x
EV/LTM EBIT 12.26 x 18.92 x 20.19 x 18.60 x 26.91 x 15.84 x 8.62 x 14.58 x 15.11 x 13.53 x
P/E Ratio 12.40 x 22.36 x 20.77 x 18.83 x 10.68 x 13.78 x 13.16 x 26.36 x 13.62 x 12.54 x
P/S Ratio 0.80 x 1.03 x 0.98 x 0.95 x 1.55 x 0.42 x 0.42 x 1.73 x 1.20 x 1.25 x
P/BV Ratio 2.63 x 2.77 x 2.64 x 2.50 x 3.28 x 0.97 x 0.97 x 2.60 x 2.74 x 1.62 x
Compounded Sales Growth
30%
28%
25%
20%
17%
15%
10%
6% 6%
5%
0%
10 Years: 5 Years: 3 Years: TTM:
Compounded Profit Growth

160%
143%
140%
120%
100%
80%
60%
40% 34%
20%
10% 10%
0%
10 Years: 5 Years: 3 Years: TTM:
Stock Price CAGR
40%
36%
35%
30%
25%
21%
20%
15%
15% 13%
10%
5%
0%
10 Years: 5 Years: 3 Years: 1 Year:
Return on Equity
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
10 Years: 5 Years: 3 Years: Last Year:
SWOT - Analysis
Strength: Weakness:
• M&M is a very adaptable & mature conglomerate • M&M is a primary vehicle and tractor manufacturing
having various tailwinds like Strong demand due to company. The headwinds that affect the industry
new innovative products. Market leaders in various overall does affect the company as well.
segment and strong hold of market abroad.
• The business is somewhat suffering from the
• Higher margins than the competition and Heavily shortages of semi conductors and supply chain issues
diversified risks due to diversification. They have hampering the production.
multiple high performing companies in the portfolio.
Quick to adapt like to shut off loss making subsidiaries. • Not able to meet up to the strong demand due to
which they might lose potential customers to other
• Very strong business that is resilient with great competitors.
operating and fiscal discipline.
• Fairly new in the EV space which could impact the
• Focused approach to going in abroad markets with the profitability since the unit economics and the
products and grab a 15% - 20% market share to play. complete income and taxation is different.
• High employee retention ratio. Potential to invest • Tech Mahindra needs some serious revamping
heavily in a viable investment. Strong financial strategy.
numbers and good cash flow generation.
Opportunities: Threats:
• Deliver scale capitalize on the market leadership. • The Auto sector is India is very competitive and with a
Automobile & Farm is well established & positioned lot of market players specifically in sub 10 & 20 L
along with Holidays, Logistics, Solar business, Real category requiring constant innovation and launches.
estate got a bunch of value creating businesses that
are poised for significant growth. • The shortage of semiconductors affects the
manufacturing of the automotive vehicles.
• Growth gems being companies with a potential and
plan to deliver $ 1 Bn market cap in 3 – 5 Years. • The industry is a heavily price sensitive market and
customers demands high value proposition from it.
• Substantial amount of investment will come up
towards creating EV capacity which we believe will be • The miniscule after effects of COVID is still present
in the next 3 – 4 Yrs around 20-30% of our portfolio. although it has been taken care of. There is Supply
chain issues of some parts for the vehicles.
• Building and saving up the capacity for launching of
five new electric SUVs to make sure that electric • Huge commodity inflation and interest affects the
really kicks off at a strong pace. financial condition.
• For trade of tractors, Positive enablers are good • Globally Russia Ukraine war, high Interest rate, etc
reservoir levels, good rabi crop, and terms of trade. affects the growth. Slow growth of the foreign
countries will have an impact.
• Expect government spending to go up in rural India
hence adding new products and segments in which • Capacity constraint is being taken care of by investing
M&M is not there. in new capacity increasement.
• Rising economy with Young & aspirational population • Potential loss of EV market share TATA is the market
demanding new products M&M is doing good. leader on that front. Rain and El Nino affect the
Tractors & Farm equipment sales.
Peers Comparison:
TATA Motors Maruti Suzuki

• Founded in 1945, Tata Motors is an Indian automotive • Established in 1982. Joint venture agreement was
manufacturing MNC with a MS of 13%. HQ in Mumbai signed between the GOI and Suzuki Motor (Japan) SMC
which is part of the Tata Group. The company produces currently holds 56.28% of its equity stake.
PV, CV, JLR, Vans, Coaches, and Buses.
• It is the market leader in passenger vehicle segment in
• The company is ranked 265th on the Fortune Global India with sales of >15.7 L units (up 15.48% YoY )with 7-
500 list of the world's biggest corporations as of 2019. 8 out of 10 highest selling cars in India are of MSIL.
• Tata Motors said it is optimistic on the future demand • With a market share of 40% in India (The Highest).
despite some uncertainties and expect a moderate
inflationary term. • Principal activities are manufacturing, purchase and
sale of motor vehicles, components and spare parts.
• It aims to deliver strong performance in the rest of the
year with a healthy order book. TML continued its • MSIL has market share in PV – 63%, UVs – 25% Vans –
strong performance in FY23 with Revenues showing a 89.6%. Sales from domestic of 94% and exports of 6%.
sharp improvement driven by JLR and CV businesses
whilst the PV business was steady. • First mover advantage in transitioning into BS-VI
models. One of Largest player in pre-owned car brand
• JLR revenues improved on strong wholesales and by sales with True Value.
improved mix resulting in EBIT margins of 7-8%.
• Widest service in the country. The main selling point is
• TAMO is the market leader in EV with market share of affordability with a high value creation and less running
72% with Tiago, Nexon and Tigor leading. costs.
Hyundai KIA
• Founded in 1996, Hyundai Motor India Ltd is a wholly • Founded in April, 2017 Kia India is a subsidiary of
owned subsidiary of the Hyundai Motor Company Korean parent Kia for its operations in India. HQ in
headquartered in South Korea. Andhra. They started the operations with the
manufacturing facility in Anantapur.
• It is the second largest automobile manufacturer with
15% market share as of 2022 and US$5.5 billion turn- • The plant started its trial production in January 2019[3]
over in India. and the mass production of its first product, the Kia
started on 31 July 2019.
• Hyundai India registered its highest ever total sales
since inception of 7,20,565 units in FY23 both domestic • The US$2 billion manufacturing plant is capable of
and exports included (17.9% YoY). producing 300,000 vehicles annually.
• Hyundai is growing due to strong SUV portfolio, SUVs • The company is ranked 265th on the Fortune Global
contribute >65% in domestic sales. HMIL has the 500 list of the world's biggest corporations as of 2019.
second largest sales and service network in India after
Maruti Suzuki. • The company sell 5 models of cars and have captured a
market share of 6-7%.
• HMIL presently operates with a robust network of 1354
sales points and 1533 service points across India. • Kia India has sold >6.3 lakh (Domestic + Exports) from
its Anantapur plant. Contributes 8-9% in global sales.
• High value and affordable products like Venue, Creta,
Aura, Verna, etc are the very reason for the growth. • Revenue > Rs 25K Cr and Net profit of Rs 825 Cr (FY22)
Peers Comparison
Sr. No Company CMP (Rs) Market Cap (Cr.) P/E P/B EPS P/S
1 Maruti Suzuki ₹ 10,210 ₹ 3,08,428 31.80 x 4.95 x ₹ 315 2.65 x
2 Tata Motors ₹ 622 ₹ 227,929 72.68 x 9.29 x ₹9 3.14 x
3 M&M ₹ 1,549 ₹ 192,603 17.90 x 3.42 x ₹ 92 1.52 x
4 Bajaj Auto ₹ 5,015 ₹ 141,891 23.19 x 4.83 x ₹ 216 3.90 x
5 Eicher motors ₹ 3,450 ₹ 94,454 31.95 x 6.87 x ₹ 108 6.71 x
Sr. No Company CMP/BV ROE(%) ROCE(%) EBITDA (%) EV/EBITDA NP (%)
1 Maruti Suzuki 5.03 x 11.5% 14.5% 10.1% 20.62 x 6.88%

2 Tata Motors 4.57 x 12.9% 7.8% 9.2% 36.71 x 0.70%
3 M&M 3.42 x 22.1% 14.9% 14.0% 11.29 x 9.38%
4 Bajaj Auto 5.00 x 20.2% 28.5% 17.8% 16.85 x 16.87%
5 Eicher motors 6.31 x 22.2% 29.6% 23.8% 20.83 x 20.17%
Peers Stock Performance (Last 1 year):
Maruti TAMO M&M Bajaj Eicher
12000
10000
8000
6000
4000
2000
0
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Disclaimer:
This research report is Only for Educational purposes and is not an
investment recommendation. I have prepared this report just as an
academic project to hone my research/knowledge and presentation skills. All
analysis used in this Report is only for illustration purposes and is of the
opinion of the author. Do your own due diligence before any kind of
investment. This report is prepared on the basis of my limited research with
the limited data available.
The financial data has been sourced from numerous websites and I have my
level best to check the sanity of the data. This should not be considered a
piece of specific investment advice. Users should not rely on this report for
any investment purposes.
If you find any error or dispersions feel free to rectify it, as the data was very
raw, unorganized and were varying within sources.. Would be glad to hear
to hear your feedback and opinion on this report. I am still learning and
always will.
Thank you for reading.
Faizan Nezami, CMA
Original Sources:
Financial Data: ROIC, Screener, Fino Logy, Tickertape, Yahoo Finance.
Others: IMF, World Bank, IBEF, SIAM, Deloitte Insights, Maruti Suzuki FY23
AR MD&A, Various Equity Research Reports of AMCs, Con Calls Transcripts
of M&M, Video Conference of Q1F24, Analyst's Presentation, Mahindra
Annual Report of FY23 and FY22, Industry Analysis Global & Local, Car
Dekho, Canalys Research, Kia India, Hyundai, Wikipedia, Statista, Global
View Research, Wall Street Prep, Investopedia, and other sources from
various other websites and reports.

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Mahindra & Mahindra Ltd.

Prepared by Faizan Nezami, CMA

Nifty 50 (Monthly Average)

19000 19189 19254

Mahindra & Mahindra (Monthly Average)

Return on Equity (ROE)

ROE - DuPont Equation

Revenue 83,773.1 92,094.0 104,720.7 93,764.5 74,277.8 90,170.6 121,268.6

Return on Assets (ROA)

ROA - DuPont Equation

Revenue 83,773.1 92,094.0 104,720.7 93,764.5 74,277.8 90,170.6 121,268.6

Working Capital / Total Assets

Retained Earnings / Total Assets

EBIT / Total Assets

Market Cap / Long Term Liabilities

Sales / Total Assets

AltMan Z Score Summary

Capex and Production:

Capex and Production:

Farm & Auto:

Mahindra & Mahindra:

Cash Flow Statement:

Future Growth Factors:

ROIIC Profiling Net Income and Capital Employed

Key Financial Ratios:

PAT (Net Profit)

ROE Net Profit Margin (%)

3.20% Farm Equipment

Debt to Equity Ratio Earning Per Share (Standalone)

Annual Income Statement (Consolidated):

Source: Screener, ROIC, Annual Report

Compounded Sales Growth

Compounded Profit Growth

Stock Price CAGR

TATA Motors Maruti Suzuki

Sr. No Company CMP/BV ROE(%) ROCE(%) EBITDA (%) EV/EBITDA NP (%)

1 Maruti Suzuki 5.03 x 11.5% 14.5% 10.1% 20.62 x 6.88%

Peers Stock Performance (Last 1 year):

Maruti TAMO M&M Bajaj Eicher

Thank you for reading.

Faizan Nezami, CMA

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