Company Profile
Mahindra & Mahindra is India’s leading SUV and tractor manufacturer. Over the years, it has diversified into sectors as diverse as Real Estate, IT, Financial services, logistics and defense services. It has been acquiring companies and growing into new areas, with some of the recent acquisitions being Punjab Tractors, Satyam Computers and Ssangyong.
It is 26% owned by the promoters, and has a large FII holding (25%) as well.
Market Segment
M&M’s core business comprises utility vehicles, three-wheelers, mini vans and tractors. These segments are witnessing a demand upswing and M&M has a dominant position in these segments.
Its product range includes Bolero, Xylo and Scorpio (in UV range) – and it enjoys a 56% market share. In the farm equipment segment, M&M commands a 40% market share. Post the acquisition of Punjab tractors, M&M now has products catering to lower as well as upper end of the tractor segment.
M&M aims to become an international player in tractors and SUV – and has acquired Chinese tractor companies as well as Korean SUV maker Ssangyong. Currently, total exports are just 4.4% of sales, and expected to move up.
Financials
M&M stock has value unlocking potential from a number of subsidiaries – Defense, Logistics, Systec, IT and Holidays.
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