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The Mahindra And Mahindra Limited Marketing Essay

Mahindra Mahindra Limited is part of the Mahindra Group, an automotive, farm equipment, financial services, trade and logistics, automotive components, after-market, IT and infrastructure conglomerate The company was set up in 1945 in Ludhiana as Mahindra Mohammed. Later, after the partition of India, Malik Ghulam Muhammad returned to Pakistan and became that nation's first finance minister. Hence, the name was changed from Mahindra Mohammed to Mahindra Mahindra in 1948.

Initially set up to manufacture general-purpose utility vehicles, Mahindra Mahindra (MM) was first known for assembly under licence of the iconic Willys Jeep in India. The company later branched out into manufacture of light commercial vehicles (LCVs) and agricultural tractors, rapidly growing from being a manufacturer of army vehicles and tractors to an automobile major with a growing global market. At present, MM is the leader in the utility vehicle (UV) segment in India with its flagship UV, the Scorpio (known as the Mahindra Goa in Italy). MM is India's largest SUV maker.

Business:

Mahindra Mahindra grew from being a maker of army vehicles to a major automobile and tractor manufacturer. It has acquired plants in China and the United Kingdom and has three assembly plants in the USA. MM has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA.

MM has a global presence and its products are exported to several countries. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.

MM is one of the leading tractor brands in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of over 25 years. It designs, develops, manufactures and markets tractors as well as farm implements. Mahindra Tractors(China) Co. Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the USA and other nations. MM has a 100% subsidiary, Mahindra USA, which assembles products for the American market.

MM made its entry into the passenger car segment with the Logan in April 2007 under the Mahindra Renault joint venture. MM will make its maiden entry into the heavy trucks segment with Mahindra Navistar, the joint venture with International Truck, USA.

MM's automotive division makes a wide range of vehicles including MUVs, LCVs and three wheelers. It offers over 20 models including new generation multi-utility vehicles like the Scorpio and the Bolero.

At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive product expansion program that would see the launch of several new platforms and vehicles over the next three years, including an entry-level SUV designed to seat five passengers and powered by a small turbodiesel engine. True to their word, Mahindra Mahindra launched the Mahindra Xylo in January 2009, and as of June 2009, the Xylo has sold over 15000 models.

Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was soon followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and double cab pick-up body styles as well as SUVs.

The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list.

Mahindra is currently preparing to sell the diesel SUVs and pickup trucks starting in February 2010 in North America, through an independent distributor, Global Vehicles USA, based in Alpharetta, Georgia. Mahindrahas announced it will import pickup trucks from India in knockdown kit (CKD) form to circumvent the Chicken tax. CKDs are complete vehicles that will be assembled in the U.S. from kits of parts shipped in crates.

FUNDAMENTAL ANALYSIS:

Technical analysis is a method of predicting price movements and future market trends by studying charts of past market action which take into account price of instruments, volume of trading and, where applicable, open interest in the instruments.

MAHINDRA AND MAHINDRA’S TEHNICAL ANALYSIS:-

Mahindra Mahindra Report Card

Attribute

Value

Date

PE ratio

33.62

19/04/2010

EPS (Rs)

14.95

Mar 2009

Sales (Rs crore)

13,125

31/03/2009

Net profit margin (%)

6.22

http://im.sify.com/finance/stockpricequote/images/spacer.gif

P/E Ratio

18.94

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EPS

Volume

361286

Face Value

PERFORMANCE OF MM IN YEAR 2008:

Balance Sheet

http://cp.walletwatch.com/companyinfo/images/spacer.gif

 

Total Share Capital

 

16.32

Net Worth

 

13.15

Net Block

 

111.57

Investments

 

0.00

Net Current Assets

 

182.22

Total Assets

 

115.11

Basic Earnings per share (Rs.) (Face value of Rs. 10 per share 65.84

Diluted Earnings per share (Rs.) 59.84

The earnings per share is quiet good and there have been significant gains in the year to the company, the EPS paid the the company is far higher than the other companies which are in its competition the company have a significant reserve and surpluses amount . however the significant thing is that the dividend paid out has slightly decreased in contrast to the increase in the EPS of the shares, earlier the divivdend paid was rs.6.73 per share while that year the dividend reduced to rs.6.22. still the performance of the company has been good if not rapid growth or expansion activities are taking place the money of the investors is safe and the return the are getting is at par to the other companies.

PERFORMANCE OF MM IN YEAR 2009:

Gross Income 14983

Net Income 13364

Profit for the year 837

Proposed Dividend 279

PERFORMANCE OF STOCKS

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As the graph clearly tells about the trend of the EPS from last 4 years in a row the EPS was highest in the year 2008 equivalent to 46.24 but dropped to 31.83 in the next year. Excluding the 2009 YR the EPS have been quiet respectable the other years.

E:\Users\gg\Desktop\Capture 3.PNGthe company has tried to later the debt equity ratio from time to time to minimize the cost of the company. Debt being a cheaper source of finance is being used to an optimum level and efficiently by the company.

Proposed Dividend 278.83(in crores)

PERFORMANCE OF YEAR 2010

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the trend in EPS and the dividend per share is decreasing from year to year in the company though the amount still is good enough but shows a gradual decrease with the time .

FUNDAMENTAL ANALYSIS OF MAHINDRA AND MAHINDRA LTD.

Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply demand chain of whatever underlies the financial instrument.

The share prices of Mahindra and Mahindra are as follows ..

Current

536.75

Vol

2692451

High

540.70

52 WK

1199.00

Low

530.00

52 WK

469.25

Prev. Close

529.35

Change%

1.4

The prices gives an instinct of a positive prospect of the company, the prices have risen from past especially after the acquiring of satyam. It is advisable to purchase the shares of the company , but if someone wants an easy and fast money he should not invest in this company, as the company is promising for investors and not speculators.

FUTURE PROSPECTS OF THE COMPANY AND NEWS RELATED TO THE COMPANY:

Mahindra Mahindra.. Entering into Solar Energy.

Mahindra Mahindra fixes record date for stock split.

Mahindra Mahindra Ltd has informed that the Company has fixed March 30, 2010 as the ‘Record Date’ for the purpose of ascertaining the list of Shareholders who would be entitled to receive 2 Ordinary (Equity) Shares of the Face Value of Rs. 5 each of the Company in lieu of every One Ordinary (Equity) shares of the Face Value of Rs. 10 held by them.

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