12 Annual Global Investor Conference
BSE Sensex
28,354
S&P CNX
8,716
th
Mahindra & Mahindra
TP: INR1,713 (+20%)
Buy
Company update | Sector: Automobiles
CMP: INR1,426
Product level initiatives to drive recovery in UVs
Several levers to improve margins
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg Val, INR m
Free float (%)
MM IN
592.6
1,509/1,092
-2/3/12
845.1
12.6
1,485
74.6
After gap of 4 years, both UVs & tractors to deliver double digit volume growth.
M&M is taking initiatives through product actions and increased marketing focus on
TUV/KUV to drive recovery in UV business.
Micro-hybrid opportunity to drive recovery in bigger SUVS and support margins.
Levers to off-set headwinds on margins; estimate ~100bp improvement by FY18.
Strong earnings traction in core (24% CAGR) + Potential reduction in losses of non-core
(Consol EPS CAGR 36%) + Attractive valuations (14.5x FY18 consol PE) = Buy.
Financial Snapshot (INR b)
2016 2017E 2018E
Y/E Mar
Sales
436.4 499.0 584.0
EBITDA
45.9 52.7 66.1
NP (incl. MVML)
32.9 39.1 50.6
Adj. EPS (INR) *
55.0 65.3 84.5
EPS Gr. (%)
4.2 18.6 29.4
Cons. EPS (INR)
53.6 73.2 98.7
BV/Sh. (INR)
366.3 410.3 468.6
RoE (%)
15.4 15.4 17.8
RoCE (%)
12.6 12.9 15.1
Cons. P/E (x)
26.6 19.5 14.5
P/BV (x)
3.9
3.5
3.0
Shareholding pattern (%)
As on
Promoter
DII
FII
Others
Jun-16 Mar-16 Jun-15
25.4
18.1
42.8
13.7
25.4
18.1
42.9
13.5
25.6
18.3
42.9
13.1
Tractors on recovery path, expect strong growth at ~18% CAGR over FY16-18
M&M’s tractor volumes are back on recovery path with ~18% growth in FY17YTD,
driven by normal monsoon and low base. It is also witnessing benefit of recent
launch of Yuvo tractors. M&M’s tractor volumes are expected to recovery sharply
with ~18% CAGR (FY16-18E). Increasing focus on farm equipment rental business
and the Government's target to double farm income in 5 years would act as catalyst
to drive penetration of implements (~2% of M&M’s FES revenues v/s global avg. of
~66%). M&M’s recent alliances in implement space would help it leverage on this
nascent opportunity.
UV business – initiatives to revive volumes underway
While M&M has addressed product gap issues with ~3 new launches in UV1
segment, these products are yet to witness sustainable traction in volumes. It has
taken several initiatives to drive recovery in UV business viz a) launch of 100HP
engine in TUV3OO, b) increased marketing of TUV3OO and KUV1OO, c) promoting
these two products in rural market as well, d) launch of micro-hybrid in Scorpio and
e) launch of ‘Bolero Power +’. Apart from these initiatives, M&M would benefit from
rural market recovery and revival in pick-up business. We estimate ~12.5% CAGR in
UV volumes for M&M over FY16-18E.
EBITDA margins – levers to improve margins
M&M’s 1QFY17 EBITDA margins largely reflected for worst of product mix (higher
KUV/TUV volumes) and impact of completion of Haridwar plant benefit. M&M has
several levers viz mix, lower MTBL losses, lower marketing spend, negative op.
leverage, to off-set impact of of exhaustion of Haridwar plant incentive and
commodity price inflation. Despite these headwinds, we expect EBITDA margins to
improve by 100 bp over FY16-18E to ~14.4%, translating into EBITDA growth of
~20% CAGR over FY16-18E.
Valuation attractive for ~24% S/A EPS CAGR
Worst is over for M&M not only in its core businesses of tractors and UVs, but also
in key subsidiaries. This would result in ~36% consol EPS CAGR over FY16-18E (v/s
~14% CAGR decline over FY14-16). With strong earnings cycle ahead in core
business and potential reduction in losses of non-core business, valuations at ~16.9x
FY18E S/A EPS, ~14.5x FY18E Consol EPS and ~6.3% FY18 FCF yield are very
attractive. Maintain
Buy,
with SOTP based TP of ~INR1,713 (16x FY18 Core EPS +
Subs at 20% HoldCo Discount).
Note: FII includes depository receipts
Relative to Index
Jinesh Gandhi
(Jinesh@MotilalOswal.com); +91 22 3982 5416
Venil Shah
(Venil.Shah@MotilalOswal.com); +91 22 3982 5445
/Aditya Vora
(Aditya.Vora@MotilalOswal.com); +91 22 3078 4701
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Mahindra & Mahindra
12 Annual Global Investor Conference
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Tractors on recovery path, expect sharp cyclical recovery
Post 4 quarters of decline, tractor volumes are seeing recovery since 3QFY16,
with M&M’s tractor volumes growing ~18% in FY17YTD, driven by normal
monsoon and low base.
Further, recovery in road construction activity will also boost demand for
tractors from infrastructure segment. It is also witnessing benefit of recent
launch of Yuvo tractors.
M&M’s tractor volumes are expected to recovery sharply with ~18% CAGR
(FY16-18E), implying ~10% higher volumes than the peak of FY14 (~2.5% CAGR
over FY14-18E).
Exhibit 1: Low base of FY15/16 driving volumes in FY17YTD
FY14
50,000
40,000
30,000
20,000
10,000
0
FY15
FY16
FY17
Source: MOSL, Company
Exhibit 2: Industry tractor volumes trending below long term average
Industry vols ('000 units)
800
600
400
200
0
Linear (Industry vols ('000 units))
Source: MOSL, Company
Multiple catalysts in the long term for faster adaption of farm
mechanization
NDA government has set out ambitious targets to double farm income in next 5
years, driven by a) New crop insurance scheme, b) focus on Irrigation, c) DBT on
fertilizer, d) Soil health card, e) E-Mandi and f) 100% FDI in food processing. If
executed well, these initiatives could potentially incentivize farmer to invest in
farms.
Further, increasing participation of private players in farm equipment rental
business has potential to drive demand for farm mechanization, especially from
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Mahindra & Mahindra
12 Annual Global Investor Conference
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small farmers (~85% of farmer population). Pay per use model would give access
to the best of implements at affordable rates.
M&M has taken two important initiatives to benefit from these trend:
Alliance with Mitsubishi Agri Machinery and Sampo Rosenlew to strengthen
its presence in nascent agri-implement business.
Trringo: Uber of tractors – farm equipment rental services platform
These augur well for not only for reducing volatility in tractors volumes, but also
act as catalyst to drive higher penetration of implements in India.
Exhibit 3: Target of doubling farm income in 5 years to be driven by 6 initiatives
100% FDI in Food
Processing
e-Mandi
Soil Health Card
DBT on
Fertilizers
Irrigation
Schemes
Crop
Insurance
Source: MOSL
Exhibit 4: Implements is 2x of tractor business globally…
Exhibit 5: …but just ~2% for M&M’s FES business
Applitrac revenues(INR m)
% of FES revenues
2.0
1.9
Tractor
33%
Farm
Implements
67%
1.0
1.6
1200
FY13
2320
FY14
2660
FY15
2370
FY16
Source: Company, MOSL
Source: Company, MOSL
September 2016
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Mahindra & Mahindra
12 Annual Global Investor Conference
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UV business – initiatives to revive volumes underway
While M&M has addressed product gap issues with ~3 new launches in UV1
segment (small SUVs), these products are yet to witness sustainable traction in
volumes.
It has taken several initiatives to drive recovery in UV business viz a) launch of
100HP engine in TUV3OO, b) increased marketing of TUV3OO and KUV1OO, c)
promoting these two products in rural market as well, d) launch of micro-hybrid
in Scorpio and e) launch of ‘Bolero Power +’.
Apart from these initiatives, M&M would benefit from rural market recovery
and revival in pick-up business. We estimate ~12.5% CAGR in UV volumes for
M&M over FY16-18E.
Exhibit 6: M&M launches in UVs in last 2 years
Models
Scorpio facelift
New XUV 500
TUV3OO
KUV1OO
NuvoSport
TUV3OO with 100HP engine
Scorpio Intelli-Hybrid
Bolero Power+
Month
Sept-14
May-15
Sep-15
Jan-16
Apr-16
May-16
Jul-16
Sep-16
Segment
UV2
UV2
UV1
UV1
UV1
UV1
UV2
UV1
Source: Company, MOSL
Exhibit 7: M&M’s UV1 share on a declining trend…
UV1
37 35
26
20 18 18
33
29 31
36 37
32
27 26
Exhibit 8: …UV2 market share decline for M&M led by new
Toyota Innova launch
70
60
23
19
50
40
30
UV2
Source: MOSL, Company
Source: MOSL, Company
M&M can potentially narrow excise duty gaps vis a vis cars
The Government of India’s FAME program (Faster adoption and manufacturing
of Hybrid and Electric vehicles) promotes the use of SHVS technology for clean
environment.
Adoption of SHVS technology will attract a 12.5% excise duty as opposed to
30.7% excise duty (excluding infrastructure cess) applicable on large SUVs. Apart
from the cut in excise duty rates, an incentive of INR13,000 per vehicle is also
offered as well as few states like Delhi offer concessional VAT of ~5% (v/s
~12.5% normal VAT rate).
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Mahindra & Mahindra
12 Annual Global Investor Conference
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M&M’s has already launched Scorpio Intelli-hybrid in Jul-16 at ~5% discount to
non-hybrid version. We believe it might launch Intelli-hybrid to XUV5OO and
Bolero in near future.
M&M has potential to reduce price by ~13.5%, if it fully passes on benefit of
lower excise duty, thereby narrowing gap vis-à-vis competitors.
Exhibit 9: Mild hybrid opportunity to enjoy concessional excise duty (INR ‘000)…
On road price @ 30.8% Excise
Price of Hybrid diesel @ 12.8% Excise
1,453
1,257
Mild hybrid would drive down
cost to consumer by ~13.5%
1,028
889
745
644
Scorpio
Bolero
XUV 500
Source: MOSL
Exhibit 10: ...significantly narrowing gap with potential competitors
Model
1. Scorpio (INR '000)
Honda City
Maruti Ciaz
Renault Duster
Ford Ecosport
2. XUV5OO
Hyundai Creta
Maruti S-Cross
Honda B-RV
Price premium @ 30.8% Excise
1,028
-1.7
8.8
-2.9
17.6
1,453
20.0
36.5
23.7
Price premium @ 12.8% Excise
889
-17.5
-5.5
-19.0
4.7
1,257
7.5
26.6
11.8
Source: Company, MOSL
Recovery in Pickups segment to continue
Subdued rural demand due to weak farm incomes along with constraints in
availability of finance led to a 10% CAGR decline in Pickups + SCV (<3.5T) over
FY14-16. Besides aggressive financing in FY13 and subsequent fall in
consumption expenditure also led to rise in NPAs over the past 2 years.
However, with major demand drivers for the LCV industry turning positive ie
falling inflation, better freight availability, stable fuel prices, improvement in
finance availability, Pick-ups + SCV (<3.5Ton) witnessed growth in 2HFY16.
The share of Pick-ups in overall LCV (<3.5 ton) segment increased from 33% in
FY11 to 61% in FY16, as it offered overall very strong package vis-à-vis SCVs. This
structural shift towards pickups has augured well for M&M over the years and is
likely to be an added advantage as it is the market leader.
M&M market share increased to 77% (+500bp since FY14) in Pick-ups and a 57%
(+11pp since FY14) in the LCV (<3.5Ton) in FY16.
With pick-up in economic activity, we estimate M&M’s pick-up volumes to grow
at ~15% CAGR over FY16-18E.
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12 Annual Global Investor Conference
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Exhibit 11: M&M Pickups recovered after a 9 quarter YoY decline
Pick-ups
50,000
40,000
30,000
20,000
10,000
0
Growth (%)
20
10
0
(10)
(20)
(30)
Source: MOSL
EBITDA margins – levers to improve margins
M&M’s 1QFY17 EBITDA margins largely reflected for worst of product mix
(higher KUV/TUV volumes) and impact of completion of Haridwar plant benefit.
M&M has several levers viz mix, lower MTBL losses, lower marketing spend,
negative op. leverage, to off-set impact of of exhaustion of Haridwar plant
incentive and commodity price inflation.
Despite these headwinds, we expect EBITDA margins to improve by 100 bp over
FY16-18E to ~14.4%, translating into EBITDA growth of ~20% CAGR over FY16-
18E.
Exhibit 12: EBITDA margins to improve despite Haridwar impact and commodity inflation
0.45
13.4
1
0.4
0.3
0.5
0.75
14.4
Source: MOSL
September 2016
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Mahindra & Mahindra
12 Annual Global Investor Conference
Exhibit 13: Revenue mix to improve in favor of Tractors
Auto
Farm Equipments
31
th
36
43
43
42
37
37
36
33
35
37
64
57
57
58
63
69
63
64
67
65
63
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17E
FY18E
Source: MOSL
Exhibit 14: MTBL EBITDA losses to narrow driven by CV cycle
MTBL EBITDA (INR m)
MTBL EBITDA losses (as % of M&M Revenues)
-862
-1861
-2465
FY11
FY12
-608
-1203
-2128 -2244 -2121
FY11
-0.3
-0.4
-0.6
FY12
-0.1
FY13 FY14E FY15E FY16E FY17E FY18E
Source: Company, MOSL
-0.5
-0.6
-0.6
FY13 FY14E FY15E FY16E FY17E FY18E
-0.5
Source: Company, MOSL
September 2016
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12 Annual Global Investor Conference
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Valuations & view: All engines firing simultaneously!
Valuations attractive for consol EPS to grow ~36% CAGR; Buy
Normal monsoon to influence rural markets, which contribute over 70% of S/A
PAT:
Monsoon plays a very important part in fortunes of M&M – not only for
Tractors (~90% rural exposure) and Auto business (~40% rural), but also for key
subsidiaries like MMFSL has rural exposure at over 80%. Rural market
contributes ~56% to revenues, 72% to S/A PAT and ~68% to SOTP.
Core businesses to grow double digit after 4 years:
After gap of four years, both
the businesses i.e Tractors and UVs would be delivering double digit growth in
FY17/18, driven by normal monsoon and benefit of recent launches. We
estimate volume growth of ~14.5% CAGR over FY16-18, as against flat volumes
over FY14-16.
Key subsidiaries performance has bottomed out:
MMFSL is expected to return
to normalcy, with stabilization in asset quality and return to normal growth path
with ~23% PAT CAGR over FY16-18E (v/s 13% CAGR decline over FY14-16).
Similarly, worst is over for Tech Mahindra with early signs of growth visible in
telecom segment, and restructuring of LCC largely completed.
Consol EPS to grow ~36% CAGR (v/s ~14% CAGR decline over FY14-16):
We
estimate S/A EPS to grow at ~24% CAGR over FY16-18E (v/s 8% CAGR decline).
However, stronger growth in subsidiaries like MMFSL and reduction in losses in
Ssangyong would drive ~36% consol EPS CAGR over FY16-18E.
Strong EPS growth in core (24% CAGR) + Potential reduction in losses of non-
core (Consol EPS CAGR 36%) + Attractive valuations = Buy:
Worst is over for
M&M not only in its core businesses of tractors and UVs, but also in key
subsidiaries. This would result in ~36% consol EPS CAGR over FY16-18E (v/s
~14% CAGR decline over FY14-16). With strong earnings cycle ahead in core
business and potential reduction in losses of non-core business, valuations at
~16.9x FY18E S/A EPS, ~14.5x FY18E Consol EPS and ~6.3% FY18 FCF yield are
very attractive. Maintain
Buy,
with SOTP based TP of ~INR1,713 (16x FY18 Core
EPS + Subs at 20% HoldCo Discount).
Exhibit 15: M&M: Sum-of-the-parts (INR/share)
Core EPS (excl. subsidiary dividend)
PE attributable (x)
Value of core business
Value of subsidiaries @ Hold Co discount
1. Tech Mahindra
2. M&M Financial Services
3. Mahindra Lifespaces
4. Mahindra Holidays
5. Ssangyong
6. Mahindra CIE
7. Others - Value per share of M&M
Target price (after 20% discount)
Upside (%)
FY17E
58.0
16
927
20
188
132
10
38
57
17
48
1,417
(0.6)
FY18E
76.4
16
1,223
188
132
10
38
57
17
48
1,713
20.1
Source: MOSL
September 2016
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Mahindra & Mahindra
12 Annual Global Investor Conference
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Operating metrics
Exhibit 16: Snapshot of revenue model
000 units
Tractors
Growth (%)
% of total volumes
UVs
Growth (%)
LCVs (MTBL)
Growth (%)
3-Ws
Growth (%)
Verito
Growth (%)
M&HCVs (MTBL)
Growth (%)
Total Autos
Growth (%)
% of total volumes
Total volumes
Growth (%)
ASP (INR '000/Unit)
Growth (%)
Net Sales (INR b)
Growth (%)
FY11
214
22.3
36.2
292
22.8
11
12.7
62
39.8
11
0.0
0
0.0
376
25.1
63.8
590
24.9
391
2.3
230
27.8
FY12
235
10.2
32.6
384
31.6
14
24.8
67
8.5
18
61.2
3
0.0
487
27.5
67.4
722
21.9
437
11.8
314
36.2
FY13
224
-4.9
29.0
470
22.4
12
-13.9
66
-2.9
16
-12.2
3
-14.9
548
17.7
71.0
772
9.5
507
16.1
399
27.1
FY14
268
19.5
34.9
428
-8.9
8
-31.4
63
-3.4
8
-48.0
2
-34.2
500
-8.8
65.1
767
-1.2
514
1.4
400
0.2
FY15
234
-12.6
33.5
398
-7.2
5
-34.7
57
-10.3
2
-80.5
3
-3.9
465
-7.0
66.5
699
-10.2
542
5.5
379
-5.2
FY16
214
-8.7
30.2
424
6.7
6
30.0
55
-3.0
3
62.5
6
15.0
494
6.3
69.8
708
1.3
571
5.3
404
6.6
FY17E
261
22.0
32.4
480
13.0
8
20.0
57
4.0
3
0.0
7
0.0
544
10.2
67.6
805
15.1
562
-1.5
458
13.4
FY18E
300
15.0
33.0
537
12.0
10
25.0
61
6.0
3
0.0
9
0.0
607
11.6
67.0
907
12.8
585
4.0
537
17.3
Source: Company, MOSL
September 2016
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Mahindra & Mahindra
12 Annual Global Investor Conference
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Story in charts: New launches to watch out for
Exhibit 17: Tractors to see strong growth in FY17-18
Tractor volumes (units)
Growth (%)
22.0
15.0
10.2
19.5
(12.6)
(4.9)
FY12
FY13
FY14
FY15
FY16
FY17E
FY18E
(8.7)
Exhibit 18: New product launches to drive UV CAGR of ~12%
31.6
22.4
6.7
13.0
12.0
UVs (incl pick-ups)
Growth (%)
(8.9)
FY12
FY13
FY14
(7.2)
FY15
FY16
FY17E
FY18E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 19: New launches at lower ASP to keep realization
growth stagnant
Net realizations (INR/unit)
Exhibit 20: Margins to improve in the near term
EBITDA (incl. MVML) (%)
13.9
13.3
13.5
12.5
13.4
13.7
14.4
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
FY12
FY13
FY14
FY15
FY16
FY17E
FY18E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 21: Capital efficiency has weakened
RoE (%)
RoIC (%)
Exhibit 22: FCF to improve despite high capex plans
CFO
42.4
28.4
14
28
37.8
27
12
35.6
Capex
55.5
33
FCF
52.0
27
60.0
35
(13)
FY12
(14)
FY13
(10)
FY14E
(20)
FY15
(22)
FY16
(25)
FY17E
(25)
FY18E
Source: Company, MOSL
Source: Company, MOSL
September 2016
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12 Annual Global Investor Conference
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Financials and Valuations
Income Statement
Y/E March
Gross Op. Income
Change (%)
Total Expenditure
EBITDA
Margins (%)
Margins (%, incl MVML)
Depreciation
EBIT
Deferred Revenue Exp.
Int. & Finance Charges
Other Income
Non-recurring Expense
Non-recurring Income
Profit before Tax
Tax
Eff. Tax Rate (%)
Profit after Tax
Change (%)
% of Net Sales
Adj. Profit after Tax
Change (%)
Adj. PAT (incl MVML)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Deferred tax
Loans
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr.Assets, L & Adv.
Inventory
Inventory Days
Sundry Debtors
Debtor Days
Cash & Bank Bal.
Loans & Advances
Others
Current Liab. & Prov.
Sundry Creditors
Creditor Days
Other Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOSL Estimates
2012
343,545
34.4
305,838
37,707
11.0
13.3
5,761
31,946
0
1,628
4,658
0
1,083
36,059
7,270
20.2
28,789
8.1
8.4
27,924
8.5
29,113
2013
434,127
26.4
387,034
47,093
10.8
13.9
7,108
39,985
0
1,912
5,177
0
906
44,156
10,943
24.8
33,214
15.4
7.7
32,532
16.5
35,438
2014
431,202
-0.7
383,990
47,212
10.9
13.5
8,633
38,579
0
2,592
7,180
0
528
43,694
6,111
14.0
37,584
13.2
8.7
37,129
14.1
38,605
2015
406,325
-5.8
364,591
41,734
10.3
12.5
9,749
31,985
0
2,143
9,883
0
3,357
43,082
8,478
19.7
34,604
-7.9
8.5
31,908
(14.1)
31,595
2016
436,389
7.4
390,470
45,919
10.5
13.4
10,681
35,238
0
1,580
8,499
0
687
42,845
10,799
25.2
32,046
-7.4
7.3
31,532
(1.2)
32,935
2017E
498,959
14.3
446,254
52,705
10.6
13.7
13,217
39,489
0
1,226
9,728
0
0
47,991
12,470
26.0
35,521
10.8
7.1
35,521
12.7
39,074
(INR Million)
2018E
583,994
17.0
517,913
66,081
11.3
14.4
14,889
51,192
0
1,226
11,141
0
0
61,107
14,666
24.0
46,441
30.7
8.0
46,441
30.7
50,569
(INR Million)
2018E
2,963
274,758
277,721
12,475
40,861
331,057
198,610
91,532
107,078
10,000
151,447
176,373
37,199
25
35,711
24
44,986
52,079
6,399
113,841
78,118
53
5,964
29,759
62,532
331,057
0
2012
2,945
118,640
121,585
5,271
31,738
158,595
74,986
34,179
40,808
10,000
103,105
85,082
23,584
27
19,884
23
11,884
24,077
5,653
80,399
47,962
56
13,985
18,453
4,683
158,595
(0)
2013
2,952
143,638
146,589
6,149
42,792
195,530
89,500
41,287
48,213
10,000
118,335
97,988
24,198
22
22,084
20
17,814
28,509
5,384
79,006
55,797
51
4,154
19,055
18,982
195,530
(0)
2014
2,952
164,961
167,912
8,897
48,787
225,596
107,961
49,192
58,770
12,284
113,799
128,034
28,036
26
25,098
23
29,504
39,640
5,756
87,291
60,688
55
5,863
20,740
40,743
225,596
(0)
2015
2,957
189,594
192,551
9,797
46,615
248,963
117,385
58,091
59,295
21,788
131,382
116,985
24,376
23
25,580
25
20,648
40,054
6,328
80,486
53,655
52
6,143
20,688
36,499
248,963
0
2016
2,963
214,109
217,072
12,475
40,861
270,408
142,955
63,426
79,529
15,655
135,204
133,736
26,879
24
25,121
23
22,970
52,367
6,399
93,715
67,636
61
5,964
20,115
40,021
270,408
2017E
2,963
240,169
243,132
12,475
40,861
296,468
173,610
76,643
96,967
10,000
143,947
143,558
31,738
25
30,468
24
30,521
44,433
6,399
98,003
66,649
53
5,964
25,390
45,555
296,468
0
September 2016
11

Mahindra & Mahindra
12 Annual Global Investor Conference
th
Financials and Valuations
Ratios
Y/E March
Basic (INR)
Fully diluted EPS
FD EPS (incl MVML)
Consolidated EPS
Cash EPS
Book Value per Share
DPS
Payout (Incl. Div. Tax) %
Valuation (x)
P/E
Consolidated P/E
Cash P/E
EV/EBITDA
EV/Sales
Price to Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
ROIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors (Days)
Working Capital (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Int./Dividends Received
Depreciation & Amort.
Direct Taxes Paid
(Inc)/Dec in Wkg. Capital
CF from Oper.Activity
Extra-ordinary Items
CF after EO Items
(Inc)/Dec in FA+CWIP
Free Cash Flow
(Pur)/Sale of Invest.
CF from Inv. Activity
Change in Net Worth
Inc/(Dec) in Debt
Interest Paid
Dividends Paid
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Beginning Balance
Closing Balance
E: MOSL Estimates
2012
46.7
48.6
51.2
57.2
206.4
12.5
29.7
2013
54.3
59.2
60.9
67.2
248.3
13.0
26.8
2014
62.0
64.5
72.7
77.5
284.4
14.0
25.7
2015
53.3
52.8
47.8
70.4
325.6
12.0
24.5
27.0
29.8
20.2
20.2
2.2
4.4
0.8
24.9
20.3
87.6
23
27
56
5
2.0
0.3
24.3
19.2
72.5
20
22
51
17
2.0
0.3
23.6
18.7
55.6
23
26
55
37
1.8
0.3
17.7
14.2
35.4
25
23
52
35
1.5
0.2
2016
52.7
55.0
53.6
71.2
366.3
15.0
26.3
25.9
26.6
20.0
18.3
2.1
3.9
1.1
15.4
12.6
30.7
23
24
61
36
1.5
0.2
2017E
59.3
65.3
73.2
82.2
410.3
17.5
33.1
21.8
19.5
17.3
15.8
1.8
3.5
1.2
15.4
12.9
28.0
24
25
53
36
1.5
0.2
2018E
77.6
84.5
98.7
103.5
468.6
20.0
29.7
16.9
14.5
13.8
12.3
1.5
3.0
1.4
17.8
15.1
32.9
24
25
53
42
1.6
0.1
(INR Million)
2018E
51,192
11,141
14,889
-14,666
-2,512
60,044
0
60,044
-25,000
35,044
-7,500
-32,500
1,920
0
-1,226
-12,021
-11,326
16,217
30,521
46,906
2012
34,976
-1,113
5,761
-7,432
-4,843
27,350
1,083
28,432
-13,404
13,945
-5,961
-19,365
818
6,442
-1,496
-8,008
-2,244
5,741
6,146
11,884
2013
43,565
-2,043
7,108
-8,732
1,559
41,457
906
42,363
-13,893
27,564
-9,416
-23,309
0
-1,534
-2,015
-8,670
-12,219
5,930
11,884
17,814
2014
43,166
-3,455
8,633
-8,942
-2,126
37,277
528
37,805
-10,053
27,224
-7,295
-17,348
1,839
1,465
-2,608
-8,935
-8,239
11,689
17,814
29,504
2015
38,332
-3,723
-9,749
-8,468
15,802
32,195
3,357
35,552
-20,226
11,969
-4,005
-24,231
26
-3,847
-2,419
-9,609
-15,848
-7,884
29,504
21,788
2016
41,612
-3,027
11,086
-9,279
14,393
54,785
687
55,473
-21,597
33,189
-13,865
-35,461
0
-9,500
-2,110
-8,461
-20,071
-747
20,648
20,069
2017E
39,489
9,728
13,217
-12,470
2,016
51,980
0
51,980
-25,000
26,980
-8,743
-33,743
2,590
0
-1,226
-10,539
-9,175
9,062
22,970
32,200
September 2016
12

Mahindra & Mahindra
12 Annual Global Investor Conference
th
NOTES
September 2016
13

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