United States

Analyst Research Report Snapshot


Mahindra & Mahindra Ltd. (MM) - Qtr. Updte - Dtd. - February 08, 2013




Axis Capital Limited


11 Feb 2013





Companies referenced:


Available for Immediate Download

M&M delivered an in line Q3 with revenue (M&M+MVML) at Rs 10.2 bn. EBIDTA at Rs 18.8 bn was 2% below estimate due to higher raw material costs. Higher other income and lower tax rates resulted in PAT beat of 4% at Rs 9.1 bn. Lower tax rate in Q3FY13 was due to higher contribution of tax free plants at Haridwar/ Rudrapur and higher R&D spend. FY13 effective tax rate will be around 24%. Management expects a good rabi crop season to revive tractor demand from April ‘13. There are no major discounts being offered by the company across business verticals. UV portfolio will see ~4 refreshes in FY14 and launches of new products w commence from FY15. Upgrade to BUY (due to price correction) with SOTP- based TP of 979. Our TP implies an upside of 11% from CMP of Rs 883. Tractor segment highlights  M&M has lost some market share due to sharp 20% drop in volumes in its key markets (Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra and Gujarat). This was due to low winter monsoon in the southern states  Company will launch a new tractor with significant improvement in value proposition in FY14  Inventory is < 8 weeks (< 3 weeks at company level and < 5 weeks at dealer level) Auto segment highlights  Apart from refreshes in UV portfolio, Reva NXR and sub 4 meter Verito are planned in FY14  XUV 500 capacity is ~4,500 units per month. Further increase in capacity will done only after demand assessment Regards, Chirag Shah (Sr VP – Automobiles) Institutional Equity Research ENAM Securities Pvt Ltd. Tel: 9122 4325 1148 Ronak Sarda (Asst VP – Automobiles) Institutional Equity Research ENAM Securities Pvt Ltd. Tel: 9122 4325 1137

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.