Mahindra and Mahindra Limited is an A /T+1 group Passenger Cars & Utility Vehicles company with having Face value of Rs. 5. Mahindra & Mahindra Limited (M&M) is the flagship company of the Mahindra Group and one of the most diversified automobile companies in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers. Currently it operates in 22 key industries such as Passenger and Commercial vehicles, Tractors, Farm Equipments, Agri Industry, Hospitality, Logistics and Last mile mobility, financial services, Technology services, Real estate, Aerospace, Component manufacturing and Steeling Solutions, Auto recycling and Aftermarket, Renewable energy, Power solution, Water Utility and Construction equipment through its subsidiaries and group companies. The company's manufacturing facilities are located at Kandivali, Nashik, Igatpuri, Nagpur, Chakan, Zaheerabad, Jaipur, Rudrapur, Haridwar, Mohali and Pithampur.  It has presence in 100+ countries with 67manufacturing facilities across the globe and operates 150+ entities on a consolidated basis. Company’s R&D facilities are set-up in 21 centres across 7 countries which includes Global Design Centre with M.A.D.E., Electric Racing Technology with Mahindra Racing & Two-Wheeler Technology with BSA in UK and Automotive & EV technology with MRV, Detroit in USA, Harvest Technology with Sampo-Rosenlew in Finland, Farm Mechanisation Technology with Erkunt in Turkey, Rice Value Chain & Tractor Technologies with Mitsubish in Japan, Advanced EV Technologies with Pininfarina in Italy and Automotive, Farm, Two-Wheeler Engineering & Design, Connected Cars & Electric Vehicle Technology, Genset & Agri, Digitisation, AI, IOT with MRV-led R&D centres, 4X4 COE with MSPT, Design studio MIDS & SDVC. It has 21 manufacturing plants India and in FY23 its Automotive Sector Sales Volume (Units) was 6,98,456 and Farm equipment Sector Sales Volume (Units) was 4,07,545.  Company’s overall auto sales for the month of September 2023 stood at 75,604 vehicles, a growth of 17%, including exports. In the utility vehicles segment, Mahindra recorded the highest sales for the third consecutive month. The company sold 41,267 vehicles in the domestic market, and overall, 42,260 vehicles, including exports. The domestic sales for commercial vehicles stood at 23,997 units.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales was at Rs 33,891.63 crore in June 2023 up 19.28%, Quarterly Net Profit at Rs. 3,508.41 crore in June 2023 up 59.8% and EBITDA stands at Rs. 7,052.94 crore in June 2023 up 52.9% as compared to June 2022. Company’s EPS has increased to Rs. 31.50 in June 2023 from Rs. 19.74 in June 2022.

Key Points:

1. Company’s 40.7% market share in Farm sector, 67% market share in 3W EV under its Mahindra Last Mile Mobility, 32% market share in Ev auto, 45.5% market share in LCV <3.5T and 12.6% market share in Indian Auto Industry.
2.  Under its EV vision, company has planned to make investments of INR 10 thousand crore over a horizon of 7-8 years for setting up the manufacturing facility, development, and production of its upcoming Electric Vehicles and they had also set up a new subsidiary named Mahindra Electric Automobile Limited (“MEAL”) INR 70 thousand crores) with an investment from British International Investment (BII).
3. Recently company unveiled their new state-of-the-art EV platform INGLO and five new production ready e-SUVs under two EV brands Mahindra Twin Peak and BE.
4. Recently the company achieved highest ever volume and revenue by exporting 18,014 Tractors from several international markets including the USA, Brazil, Bangladesh, Australia and various African markets like Mali, Tanzania. Company also made significant growth in business through tenders and bulk orders from markets like Benin, Kenya, Guyana, etc.
5. The company recorded over 10,000 bookings for their newly launched e-SUV, Mahindra XUV400, since bookings commenced in 34 cities.
6. Mahindra Last Mile Mobility (LMM) launched the latest addition of its electric 3-wheeler line up - the Mahindra e-Alfa Super with higher range of 95+ kilometre on a single charge. Company has already delivered more than 50000 e-Alfa which is an older version of e-Alfa Super.
7. LMM, through strategic charging vendors, has managed to set up several charging stations near autorickshaw stands, auto driver home clusters and junctions. The charging points have been positioned in strategic locations like Malad, Kandivali, Mira Road, Navi Mumbai, Vasai, Virar, Andheri and so on.
8. Recently the company signed a MOU with the Government of Telangana for its proposed expansion plans at its existing manufacturing facility at Zaheerabad Plant in Medak District for setting up of manufacturing facility for production of electric 3 and 4 wheelers pertaining to Last Mile Mobility business at an estimated investment cost of Rs.1,000 crores to be made over a period of 8 years.
9. Company has also partnered with Terrago Logistics, a Delhi-based start-up Terrago and currently it has a fleet of 65 Mahindra Treo Zor cargo vehicles deployed with online grocery major, Big Basket in 3 cities and leading logistics major, Porter.
10. Company will deliver over 500 Treo electric autos over the next few months to Amritsar government under RAAHI project. A total of 12 cities including Amritsar have been selected under the CITIIS program and MEML.
11. Company has recently set up a dedicated new plant at Pithampur spread over 23 acres with a capacity to manufacture 1,200 combine harvesters a 3,300 rice transplanters per year. Its Swaraj Division is also setting up a new manufacturing plant in Mohali to create additional capacity.
12. Company will be launching an industry first aftermarket IoT solution, the Krish-e Smart Kit which presents the smartest, most affordable and sustainable way for farmers and businesses to connect and monitor their farm equipment on the go.
13. Company’s New Automobili Pininfarina B95 is the first-ever all-electric hyper Barchetta and is a coachbuilt celebration of timeless PURA design and technical mastery. Automobili Pininfarina is an 100% Mahindra & Mahindra Ltd investment based in operational headquarters in Munich, Germany with an aim to be the most desired, sustainable luxury car brand in the world.
14. Mahindra & Mahindra (M&M) and Jio-bp are strengthening their existing partnership with Jio-bp setting up robust charging network for Mahindra's upcoming e-SUVs launches.
15. AFS division of Mahindra and Mahindra business has adopted a 60 MWp Captive solar power plant located in Parbhani in the Marathwada region which will be built, owned and operated for 25 years by ReNew Sunlight Energy Pvt. Ltd., a 100 % subsidiary of ReNew Power Pvt Ltd. It is a part of company’s commitment to switch to 50% renewable energy by 2025.
16. Company recently launched Bolero Neo+ Ambulance which built with full compliance with AIS:125 (Part 1) norms that govern the Type B Ambulance segment. The Neo + stands out for its superior OEM-level of build quality coupled with a versatility that will appeal to buyers in big cities, smaller towns and upcountry locations.
17. Swaraj Tractors, a rapidly growing tractor brand and a part of the Mahindra Group recently released its new TV commercial (TVC), featuring cricketing legend and Swaraj’s Brand Ambassador, MS Dhoni. The company has also partnered with SARGA MotoCorp to bolster its farm equipment business in Tanzania.
18. The company recently showcased its new Global Pik Up concept at its signature Futurescape event in Cape Town to mark its entery into newer international markets while strengthening its presence in existing ones with a range of world-class products, beginning with the Global Pik Up.
19. Company recently unveiled Mahindra OJA which is set to Transform Farming in India, with the launch of 7 Revolutionary Lightweight 4WD Tractors. It is loaded with pioneering first-in-category technology features, based on Three Technology Packs – MYOJA (Intelligence Pack), PROJA (Productivity Pack) and ROBOJA (Automation Pack). It is developed in collaboration between the engineering teams of Mahindra Research Valley, India, the R&D centre for Mahindra AFS and Mitsubishi Mahindra Agriculture Machinery, Japan, at an investment of INR 1200 crore.
20. Temasek, the Singapore-headquartered global investment firm, have recently executed a binding agreement for Temasek to invest INR 1,200 crore into MEAL (Mahindra Electric Automobile Limited), the four-wheeler (4W) passenger electric vehicle company.

In last 3 Years the stock gave a whooping return of 146.95% as compared to the rise of Sensex and Nifty in the same period.

M&M was India's 4 Largest Passenger Vehicle Company, No.3 SUV maker (by volume) and No.1 SUV maker (by revenue), country's second Largest Commercial Vehicle Company, the largest Small Commercial Vehicle Company (<3.5T) and also the No.1 CV Exporter as of FY23. India’s automobile sector as a whole is going to experience huge demand in upcoming future and Mahindra is well poised enjoy the sweeter spot considering its Market Share in different sectors of Automobile industry. Considering good financials, strong management, good global presence, various R&D centres for each sector of automobile, growing demand of the industry as a whole and launch of futuristic products in upcoming years M&M is a good company to have in portfolio for long term period.   

HET ZAVERI

info@smartinvestment.in

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