M&M: Cosmetic changes - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

M&M: Cosmetic changes

Jul 2, 1999

Mahindra & Mahindra (M&M) Group is restructuring its 18 subsidiaries into three business clusters - Mahindra and Mahindra (M&M), Mahindra Holding & Finance Ltd. (MHFL), and Mahindra Information Technology Services Ltd. (MITSL). While M&M will retain the auto-related businesses, the info tech business will be under MISTL. The other businesses comprising realty, consultancy will be under MHFL. M&M (FY99 Sales Rs 34.5 bn) is a dominant player in the mfg of utility vehicle segment as well as the tractor segment of the automobile industry. It is also engaged in the manufacture of light commercial vehicles and is aiming to become the largest player (in terms of volumes) in the world tractor market. M&M also has a presence in the information technology, consultancy and realty sectors.

Amongst these subsidiaries, some have a high earnings growth potential like Mahindra - British Telecom, while others do not have such potential. Amongst those that are not performing well are Mahindra Realty and Mahindra Exports.

The analysts had voiced concerns regarding the lack of transparency in the balance sheet. Moreover, they feared that the cash flows of M&M could be diverted to cash flow deficit divisions, thus ultimately putting pressure on the bottomline of M&M. Therefore, this exercise has been initiated to clean the balance sheet and make it more transparent.

The mixed performance of the subsidiaries is of concern because when consolidation of accounts becomes mandatory the company could take a hit on its bottomline due to the bad performance of these subsidiaries. Therefore, apart from restructuring the company should take concrete measures to improve the performance of these subsidiaries.

Market View:
The stock has been rated as a 'SELL' mainly on account of the company's high capex plans, high inventory levels and sluggish utility vehicle sales growth. However, on the prospects of an agricultural boom, some analysts are expecting the company to be a direct beneficiary and have rated the stock as a 'BUY'.

Equitymaster requests your view! Post a comment on "M&M: Cosmetic changes". Click here!

  

More Views on News

TATA MOTORS Share Price Up by 5%; BSE AUTO Index Up 3.8% (Market Updates)

Apr 13, 2021 | Updated on Apr 13, 2021

TATA MOTORS share price is trading up by 5% and its current market price is Rs 302. The BSE AUTO is up by 3.8%. The top gainers in the BSE AUTO Index are TATA MOTORS (up 5.2%) and M&M (up 6.8%).

TATA MOTORS DVR Share Price Up by 5%; BSE AUTO Index Up 3.3% (Market Updates)

Apr 13, 2021 | Updated on Apr 13, 2021

TATA MOTORS DVR share price is trading up by 5% and its current market price is Rs 133. The BSE AUTO is up by 3.3%. The top gainers in the BSE AUTO Index are TATA MOTORS DVR (up 5.0%) and M&M (up 6.1%).

M&M Share Price Up by 5%; BSE AUTO Index Up 1.7% (Market Updates)

Apr 13, 2021 | Updated on Apr 13, 2021

M&M share price is trading up by 5% and its current market price is Rs 790. The BSE AUTO is up by 1.7%. The top gainers in the BSE AUTO Index is M&M (up 5.1%). The top losers are TATA MOTORS and TVS MOTORS .

M&M Announces Quarterly Results (3QFY21); Net Profit Down 89.9% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, M&M has posted a net profit of Rs 309 m (down 89.9% YoY). Sales on the other hand came in at Rs 142 bn (up 15.2% YoY). Read on for a complete analysis of M&M's quarterly results.

M&M 2019-20 Annual Report Analysis (Annual Result Update)

Dec 7, 2020 | Updated on Dec 7, 2020

Here's an analysis of the annual report of M&M for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of M&M. Also includes updates on the valuation of M&M.

More Views on News

Most Popular

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

If the Market Falls, I Will Do This... (Fast Profits Daily)

Apr 1, 2021

What should you do if the market falls? In this video, I'll tell you what I will do.

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

M&M SHARE PRICE


Apr 13, 2021 03:38 PM

TRACK M&M

COMPARE M&M WITH

MARKET STATS