MAHINDRA-Work hard and play hard

Mahindra & Mahindra is a multinational automotive manufacturer based out of Mumbai, India. Mahindra started as a steel trading company in 1945 in Ludhiana by Kailash Chandra Mahindra and Malik Ghulam Muhammad.Post independence, Muhammad migrated to Pakistan and served as the first finance minister leaving the company to Shri Kailash Mahindra.Mahindra then moved onto manufacture passenger vehicles in India under the licence of Willys Jeep.They also saw a massive opportunity in the tractor industry for which they acquired Gujarat tractors and Punjab Tractor Limited making them the worlds largest tractor manufacturer.From then, they have had a long trail of acquisitions such as Kinetic Motors , REVA, SsangYong and Pininfarina SpA. Mahindra&Mahindra had their IPO back in 1956 and over 4 different subsidiaries have since gone public.

Mahindra currently trades at Rs.875-925 with a market cap of Rs 1.123T.Their main earnings come from tractor manufacturing where they have a 41% market share globally.Another profitable venture is their utility vehicle business where they have a 38% market share in the Asian and African regions.In addition they also participate in Aerospace, Aftermarket, Boats, Components, Financial Services, Information Technology, Logistics, Hospitality, Real Estate, Retail, Steel and Two wheeler industries.

Mahindra has a median price forecast of Rs.1245 with a high estimate of Rs.1389 and a low estimate of Rs.960.The median represents a 38% increase from the last trading price.All 20 analysts hold a buy consensus with most advising a 5 year investment horizon.With major shift to be experienced in the automotive industry, there are positive feelings surrounding the brand. Mahindra manufactures from India and is heavily being promoted under the Make In India Scheme.

Mahindra is a very traditional family business with a long standing history.They have always been involved in heavy industries and have benefitted heavily from their public issues.They are considered as one of the most vital companies involved in the building of the liberal Indian economy.Mahindra passenger vehicles is currently under a rebranding phase where they are trying to change to a more premium segment and appeal to the younger age group.They have also been involved in many defence contracts for the army and even in the aviation sector. Recently ,they have gotten involved in real estate and infrastructure as well with Lifespaces being Rs.2500 crore and Powerol their backup power company has a market share of 57% in the Indian power sector.One of their core practices is to fund new high risk ventures from the backup of their old businesses.The agriculture business is a full end to end business where they provide systems and resources to farmers such as tractors, equipments and implements.In addition, they also provide farmers with fair prices and give them supply chain solutions as part of their corporate social responsibility.They have been heavily investing in sustainable energy evident from their 12B$ commitment in Mahindra Susten,Solarize and Teqo. They have evolved a lot with the new business scenario with Information Technology businesses such as TechMahindra and financial services.Despite all this success in all the realms, they have always been criticised for having predatory business practices and there have been serious allegations against them for corruption. All said and done, they have become an integral part in the Indian economy which is one of the fastest growing economies in the world which is also a major contributor to the success of Mahindra&Mahindra.