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sbafin
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Joined: 04/Apr/2007
Location: India
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Posts: 5
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   Topic: Mahindra & Mahindra - The future of automobile
Posted: 28/Apr/2007 at 12:26pm |
Dear basantji,
Is Mahindra & Mahindra a good value buy. How do you see the future growth prospects of the company
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http://www.sba.co.in/
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basant
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Posted: 28/Apr/2007 at 1:20pm |
Excellent company among the autos this should be the best. They have a umber of ionteretsing subsidiaries like Tech Mahinbdra,mahindra Gesco,their JV foray into car manufacturing with Renault coupled with Anand mahindra's out of the box thinking makes it a god company to own.Should do an EPS of close to Rs 58 for Fy 08.
Edited by basant - 28/Apr/2007 at 1:21pm
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sbafin
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Joined: 04/Apr/2007
Location: India
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Posted: 28/Apr/2007 at 2:31pm |
Dear Basantji,
Can u provide me the details of M&M's subsidiaries and M&M's holdings in these subsidiaries alongwith their financials
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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 29/Apr/2007 at 6:20am |
Auto is very difficult business. There are many margin dampener so unless one picked them before strong cycle starts, it is very difficult to imagine wealth creation.
Value unlocking happens due to some zing. Zing factor was present in RIl, GE Shipping, Bajaj auto etc. I fail to see any zing factor in M&M. A value without zing will remain value.
Also recent M&M model to form SPV with respective companies for particular vehicle is bad news for any value unlocking. Let's see what next, obviously nothing is crystal clear in markets until nse/bse announcements.
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Don't bet on pig after all bull & bear in circle.
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basant
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Posted: 29/Apr/2007 at 9:11am |
Originally posted by sbafin
Dear Basantji,
Can u provide me the details of M&M's subsidiaries and M&M's holdings in these subsidiaries alongwith their financials |
Would see if I can dig out something on this.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kannanravi1
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Joined: 08/May/2007
Location: United States
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Posted: 09/May/2007 at 10:40pm |
M&M has several interesting subsidiaries. Tech Mahindra is the most well known among them. Tech Mahindra is a great software development company with great management. Tech Mahindra has carved iteslef a great and growing niche in telecom software development. Mahindra Gesco is another subsidiary in the real estate development business. This subsidiary is also doing exceedingly well. Mahindra Systech is a subsidiary in the booming auto components design outsourcing business. They also do a lot of component sourcing for global auto majors. With India emerging as a key auto components exporter, this subsidiary is set to grow.
Hope this helps!
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kannan
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posted: 11/May/2007 at 2:22pm |
A value without zing will remain value.
------------------------------------------------------------------------
Kindly throw some light on how to identify the zing????? the only problem I see with MM is that they come in news more often, which makes it very difficult to track. And I agree with you Vipul, JVs are the best way to destroy value. And in terms of wealth destroying indicators, I place JV next to leverage.
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rapidriser
Senior Member
Joined: 18/Nov/2007
Location: India
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Posts: 966
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Posted: 16/Sep/2011 at 8:54am |
Surprised to see that there are hardly any postings on this thread.
The company has been a consistent performer in the past with regular growth and dividend payouts. Management is shareholder friendly and the co is the undisputed leader in one of the most promising sectors of the economy - farm mechanisation.
The only problem I see is the holding co like structure with investments in many subsidiaries operating in diverse fields. In future we can hope the management will unlock value by divestmenting these subsidiaries.
Just checked and found that the co has returned a CAGR of 21% since 01-Jan-1991. Dividends extra. 
The lack of interest in this stock thread seems definitely unjustified to me.
Edited by rapidriser - 16/Sep/2011 at 9:01am
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When all else is lost, the future still remains. - Christian Nestell Bovée
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