A company of Steel formed Pre-Independence in 1945 as Mahindra & Mohammed to give name M&M, which later Became M&M (Mahindra & Mahindra) as Muhammad became Finance Minister of Pakistan after being Muhammad migrated to Pakistan. Today among the largest company among utility vehicles & varied interests.
During 2001: Sales: 4000 Cr
Profit: 120 Cr.
During 2019: Sales: 1 Lakh Cr plus
Profit: 6000 Cr
Year 2019 profit were 1.5X then 2001 Revenue. Already created huge wealth for Investors as the investment of 1 lakh done in 2001 has grown by 25% CAGR and 2,50,000 dividends received. M&M is the strongest player in vehicle farm as around 40% of market shares belongs to M&M. Many people have been holding this stock for the last 10 years around 200 while some added again during 2014 around 400 as well as some bought last year at 600. M&M crossed 1 lakh crore revenue DURING 2019 but the AUTO industry as the whole has seen muted growth since 2017 and Mahindra&Mahindra growth was also paused. We have not seen lifetime high sales since the past 3 years. Initially muted by global meltdown and last year affected by COVID. Farm & Auto Equipment has about 68% share in total sales.
H1:
FARM EQ continued to deliver robust performance both in terms of market share and financial metrics despite steep commodity inflation. Had a blockbuster XUV7OO launch witnessing bookings of more than 70k. The demand for other key automotive products also remains strong. With better availability of semi-conductors, now hope to maintain the volume growth momentum Q3 onwards. Commodity prices have impacted margins in both the Auto and Farm business, but focus on cost management and optimization has helped mitigate some of the impacts. 30% growth in sales with 5.5% profit margin are maintained. This year we may see sales growth of around 20% maintaining the same margin.
Demand is good in the overall auto industry since last year and improvements should be there. Hence, we may again back on the growth track. New buying again can be done during any fall in the whole range of 700 to 600 while some 5-10% profits have already recommended during recovery near 965.
19% Promoter holding, 40% Holding is with FPI while 10% with MF companies & 11% with insurance companies with major stake of LIC of around 8.5%.
Disclosure: Do Not Buy or sell before consulting your advisor as the writer may have the position in the above-given stocks or indices