M&M acquires Gujarat Tractors ...finally - 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 acquires Gujarat Tractors ...finally

Oct 18, 1999

News reports in a leading financial daily reveal that Mahindra & Mahindra (M&M) has finalised the deal to acquire Gujarat Tractors at a price of Rs 20 per share. M&M is the leader in the utility vehicle segment (61% market share in August 1999) and the tractor segment (28% market share). It is also engaged in the manufacture of light commercial vehicles (LCV). In addition to the automobile segment, the M&M group also has interests in information technology (IT) and realty.

Gujarat Tractors has a manufacturing facility (at Baroda) with production capacity of 2,000 units p.a. in the 20-80 HP range. M&M's acquisition (of Gujarat Tractors) will enhance its product range. It will also give the company a foothold in the Gujarat market. Another factor that could have influenced M&M's decision to acquire the company is the fact that the latter is a cost-efficient manufacturing unit with scope for capacity expansion.

Post-acquisition, M&M will be looking to enhance market share in tractors. It will command a presence even in the higher range. But the competition will be thick in that particular segment with Escorts and MNC majors John Deere and New Holland fighting for a slice of the pie. But M&M with a superior distribution network will have an edge over the MNCs, but only in the beginning.

M&M plans to dominate the local market, as well as the global market (in volumes). It will look to expand by way of acquisitions, as this will save the company the trouble of setting up a fresh plant.

Market view:
Marginal rise in tractor sales in September combined with an 8% decline in UV sales have disappointed analysts who have flagged a 'SELL' on the stock.

Equitymaster requests your view! Post a comment on "M&M acquires Gujarat Tractors ...finally". Click here!

  

More Views on News

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.

M&M Announces Quarterly Results (1QFY21); Net Profit Down 95.2% (Quarterly Result Update)

Aug 7, 2020 | Updated on Aug 7, 2020

For the quarter ended June 2020, M&M has posted a net profit of Rs 1 bn (down 95.2% YoY). Sales on the other hand came in at Rs 56 bn (down 56.6% YoY). Read on for a complete analysis of M&M's quarterly results.

M&M 2018-19 Annual Report Analysis (Annual Result Update)

Jul 9, 2019 | Updated on Jul 9, 2019

Here's an analysis of the annual report of M&M for 2018-19. 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

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

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.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.

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 12, 2021 10:27 AM

TRACK M&M

COMPARE M&M WITH

MARKET STATS