Buy Mahindra & Mahindra Ltd CMP: Rs. 665 Target Price: Rs. 775
Mahindra & Mahindra Ltd is the flagship company of the Mahindra Group, present in diverse business areas. It is the leader in UVs (56%) and tractors (41%), and is growing significantly in financial services, tourism, infrastructure development, trade and logistics through its various subsidiaries and associate company. Besides thriving in UV and tractor businesses, the company has a sizeable market share in the LCV market (~30%), three wheelers (7%) and two wheelers (~5%). To venture into the MHCV space, M&M would be launching trucks ranging between 16MT and 49MT, in collaboration with Navistar International USA Inc.
Mahindra & Mahindra dominates the domestic tractors market, commanding 41% market share. Three key structural factors—higher farm product prices, firmer labour wages (notably NREGA), and greater commercial usage of tractors—have significantly increased rural incomes and brought smaller farmers (owning <4 hectares of land) into the "tractor purchasing" ambit. These factors are likely to drive long-term tractor demand, which Mahindra & Mahindra (M&M) is well-positioned to capitalize on.
Mahindra & Mahindra Ltd is the flagship company of the Mahindra Group, present in diverse business areas. It is the leader in UVs (56%) and tractors (41%), and is growing significantly in financial services, tourism, infrastructure development, trade and logistics through its various subsidiaries and associate company. Besides thriving in UV and tractor businesses, the company has a sizeable market share in the LCV market (~30%), three wheelers (7%) and two wheelers (~5%). To venture into the MHCV space, M&M would be launching trucks ranging between 16MT and 49MT, in collaboration with Navistar International USA Inc.
Mahindra & Mahindra dominates the domestic tractors market, commanding 41% market share. Three key structural factors—higher farm product prices, firmer labour wages (notably NREGA), and greater commercial usage of tractors—have significantly increased rural incomes and brought smaller farmers (owning <4 hectares of land) into the "tractor purchasing" ambit. These factors are likely to drive long-term tractor demand, which Mahindra & Mahindra (M&M) is well-positioned to capitalize on.
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