BSE SENSEX
31,955
S&P CNX
9,900
Mahindra & Mahindra
CMP: INR1,383
TP: INR1,625 (+17%)
Getting future ready
UV segment needs push; tractor segment healthy
Mahindra & Mahindra’s (MM) FY17 annual report highlights the company’s focus on
technologically advanced new products in the farm segment, continuous improvement in
the UV segment to comply with the new emission/regulatory norms, and market share
increase in the CV segment.
20 July 2017
Annual Report Update | Sector: Automobiles
Buy
Motilal Oswal values your support in
the Asiamoney Brokers Poll 2017 for
India Research, Sales and Trading
team. We
request your ballot.
Farm segment : Focus on technological prowess
Right products drive growth and market share
Strong tractor segment growth of ~23% in FY17 was supported by the good
performance of YUVO, which has helped the company gain market share in the
30-50 HP segment (covers 70-80% of industry). YUVO, an all-new tractor
platform launched in April 2016, was highly successful in strengthening the
technology leadership of Mahindra tractors in FY17.
MM, in April 2017, also launched its third new tractor platform, JIVO, a new-
age small tractor platform in the sub-25 HP category (covers only 5% of
industry), which is an ideal choice for the growing segments of horticulture and
row crop farming.
Strategy: Farming 3.0 (a holistic view by MM)
Farming 3.0 is a comprehensive ecosystem, with offerings across the value
chain for the farmer. It provides access to smart machinery, precision farming
practices, digital platforms and ecosystem connect with an aim to help farmers
improve their crop yields and double their farm income.
With increasing labor cost and its scarcity, greater adoption of various forms of
mechanization is the way forward, in our view. Against this backdrop, MM
believes that the market for tractors and other farm equipment should grow
over the long term.
MM’s objective is to strengthen its global footprint and bring modern
technologies in farm mechanization into India. It also plans to leverage its
partnerships with MAM (Japan) and Sampo Rosenlew (Finland).
Outlook
According to MM, tractor industry growth in FY18 is expected to be driven by
positive rural sentiment, driven by normal monsoon and good agri income.
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, INRm
Free float (%)
MM IN
592.6
1,509/1,142
-3/-3/-20
819.9
12.7
1555.0
74.8
Financials Snapshot (INR b)
2018E 2019E 2020E
Y/E Mar
Sales
490.5 561.0 631.4
EBITDA
55.0
64.1
73.3
NP*
40.4
47.2
53.0
EPS (INR)*
67.4
78.9
88.6
EPS Gr. (%)
7.8
17.0
12.3
Cons.EPS (INR)
66.7
79.9
87.3
BV/Sh. (INR)
476.3 529.4 592.2
RoE (%)
14.1
14.6
14.8
RoCE (%)
13.1
13.6
13.9
Sales
490.5 561.0 631.4
P/E (x)
20.5
17.5
15.6
Cons. P/E (x)
20.7
17.3
15.9
P/BV (x)
2.9
2.6
2.3
* incl. MVML
Shareholding pattern (%)
Mar-17 Dec-16 Mar-16
As On
Promoter
25.3
25.3
25.4
DII
20.1
19.1
18.1
FII
39.8
41.0
42.9
Others
14.8
14.6
13.5
FII Includes depository receipts
Auto segment: Challenges remain, but confident of sailing through
Losing market share in UVs; CV segment remains healthy
In the UV segment, MM lost market share from 37.9% to 29.2% in FY17, led by
intensifying competition and rural slowdown due to the impact of
demonetization. However, its bread and butter segment (Bolero, Scorpio, etc)
is gradually recovering, and should do well, led by likely good monsoon and
higher agri income.
Jinesh Gandhi
(Jinesh@MotilalOswal.com); +91 22 6129 1524
Jigar Shah
(Jigar.Shah@MotilalOswal.com); +91 22 6129 1534 /
Deep Shah
(Deep.S@MotilalOswal.com); +91 22 6129 1533
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.

Mahindra & Mahindra
In February 2016, MM launched Blazo series of HCVs (trucks) with Fuelsmart
technology, leading to ~18% volume growth to 6,715 units in FY17.
Consequently, its market share in the HCV segment expanded to 4% from 3.4%
in the previous year.
In the LCV<2T segment, volumes grew ~8%, led by the success of Jeeto. MM’s
market share in this segment increased from 23.9% in FY16 to 25.7% in FY17.
To maintain its leadership position in goods LCVs in the 2-3.5t segment (market
share: 65.8%), the company launched Supro Minitruck and Supro Cargo Van in
February 2017.
Strategy
The company has strategized to strengthen the product portfolio and
refresh/update existing products. Also, MM is pursuing a strategy to introduce
petrol engines across the product range – the share of diesel variant in total PV
sales declined to 40% in FY17 from 58% in FY13.
Healthy outlook
For FY18, SIAM forecasts good growth for the industry: +7-9% for PVs, +5-7% for
LCV goods, +4-6% for CVs, double-digit for 3Ws, and 9-11% for 2Ws.
Focus on EVs to stay ahead of market
MM is focusing on development of the electric vehicle (EV) market and
upgradation of EV technology capabilities. MM’s EV portfolio comprises E20
electric car, e-Verito car and the Supro EV cargo and van. It sold 973 units in
FY17, up from 870 units in FY16. The plan is to increase capacity from 1,000
units in phase-1 to 5,000 units in phase-2 over the next 2-3 years.
Regulatory changes to increase investment/capex
The new safety regulations will be rolled out under the name of Bharat New
Vehicle Safety Assessment Program (BNVSAP), which will be applicable from
FY19 for new vehicles and from FY20 for existing vehicles. Similarly, emission
norms will be changed to BS-VI with effect from 1 April 2020 on a pan-India
basis. MM believes that conforming to the next stage of regulations will call for
the use of advanced technologies and will have an impact on costs. At the same
time, it is geared-up and confident of meeting these regulations.
Reduction of losses of key subsidiaries
Ssangyong reported PAT of INR2.3b in FY17 as against loss of INR1.6b in FY16.
Overall, the key subsidiaries reported reduction in losses this year (Refer
Exhibit
8).
MM is working toward containing 2W losses (FY17: INR4.7b) by adopting an
efficiency-focused approach and cost management. The company will focus on
improving sales of Mojo, and expects to bring a few Mojo variants in FY18.
Mahindra Two Wheelers’ (MTWL) past business strategy was focused on
addressing the mass 2W market. However, given the market response, MTWL
has decided to make a strategy shift by focusing on niche premium 2Ws.
Valuation and view
We estimate ~17% consolidated EPS CAGR over FY17-20 (v/s ~9% compounded
annual decline over FY14-17). Recovery in rural markets improves visibility of
volume revival in both its core businesses. MM is one of the cheapest large-cap auto
stocks, with valuation of 17.5x/15.6x FY19/20E consolidated EPS and 14.1/12.4x
core EPS (adjusted for value in subsidiaries after 20% holding discount). Maintain
Buy
with an SOTP-based target price of ~INR1,625.
20 July 2017
2

Mahindra & Mahindra
Story in charts:
Exhibit 1: MM gained market share in FY17 with the help of YUVO launch
Tractors volumes (category-wise)
HP Segment
Total
<20
20-30 (Launched JIVO in FY18)
30-40 (Launched YUVO in FY17)
40-50 (Launched YUVO in FY17)
>50
FY17
582,084
23,556
30,558
201,682
284,706
41,582
Industry
FY16
493,497
22,911
30,225
180,904
226,627
32,830
Growth
18.0%
2.8%
1.1%
11.5%
25.6%
26.7%
Exhibit 2: UV segment loses market share, while LCV goods <3.5T maintains its share
Source: Company, MOSL
Exhibit 3: Market share gain by 180bps YoY
Tractor market share (%)
42.0%
40.9%
41.4%
41.4%
40.1%
38.9%
40.6%
40.9%
40.0%
42.7%
Exhibit 4: UV share continue to fall
UV market share
56.0%
53.5%
55.3%
48.8%
41.7%
37.5% 37.9%
29.2%
Source: Company, MOSL
Source: Company, MOSL
20 July 2017
3

Mahindra & Mahindra
Exhibit 5: Implements business remained largely flat led by impact on rotary tillers sales due to demonetization
Applitrac revenues(INR m)
2.0
1.6
1.0
% of FES revenues
1.7
1.5
1200
FY13
2320
FY14
2660
FY15
2160
FY16
2180
FY17
Source: Company, MOSL
Exhibit 6: Bifurcation of revenue segment wise
Others, 9.8%
CVs, 22.8%
Passenger Uvs,
40.2%
Tractors, 27.3%
Source: Company, MOSL
Exhibit 7: MM spent INR20.8b (PY:18.9b) incl. capex of INR12b for R&D during the year
20 July 2017
4

Mahindra & Mahindra
Exhibit 8: Trend in key subsidiaries, associates and JVs
INR m
Subsidiaries
Mahindra Two Wheelers
Peugot Motorcycles SAS
Mahindra Yueda Tractor Company
Mahindra Reva Electric vehicles
Mahindra Tractor Assembly
Mahindra Aerostructures Pvt
Mahindra Sanyo Special Steel
Mahindra First choice Services
Mahindra First Choice wheels
Mahindra Aerospace Pvt
Mahindra Aerospace Australia Pty
Gipp Aero Investments Pty
Mahindra Engineering & Chemical
Mahindra Trucks & Buses
Mahindra Intertrade
Mahindra Rural Housing Finance
Mahindra Retail Pvt
SsangYong Motor Company
Listed entities (Subsidiaries & Associates)
Mahindra Lifespace Developers
Mahindra Holidays
MMFSL
Tech Mahindra
Mahindra CIE Automotive
CIE Automotive SA
Joint Ventures
Mitsubishi Mahindra Agriculture Machinery
(150)
(176)
27
Source: Company, MOSL
7,532
11,059
62,375
489
1,307
4,002
7,406
292
1,398
6,002
9,626
59,051
1,045
1,174
6,726
8,267
284
1,147
(556)
133
(2,724)
(862)
8
251
FY17
Net sales
3,339
6,571
3,244
1,196
261
318
9,184
792
953
10
60
0
15
1,316
10,072
7,034
1,815
209,723
PAT
(4,716)
(1,608)
(1,544)
(1,132)
(1,124)
(525)
(461)
(455)
(162)
(55)
(2)
(1)
3
80
597
830
1,751
2,312
FY16
Net sales
7,042
7,070
5,206
678
51
76
8,521
606
624
30
51
0
25
1,179
11,102
4,955
2,040
200,808
PAT
(6,152)
(1,868)
(1,361)
(916)
(961)
(523)
(521)
(672)
(106)
(1,401)
(1,347)
(968)
(1,365)
93
624
627
(931)
(1,624)
Change in PAT
1,436
261
(183)
(216)
(163)
(2)
60
218
(56)
1,346
1,345
968
1,368
(13)
(27)
203
2,682
3,936
20 July 2017
5

Mahindra & Mahindra
Story in charts:
Exhibit 9: Tractors to see strong growth in FY18-19
Tractor volumes (units)
19.5
10.2
(8.7)
(12.6)
(4.9)
(8.9)
(7.2)
23.1
15.0
10.0
8.0
Growth (%)
Exhibit 10: New product launches to drive UV CAGR of ~10%
31.6
22.4
6.7
9.3
3.1
12.0
10.0
UVs (incl pick-ups)
Growth (%)
Source: Company, MOSL
Source: Company, MOSL
Exhibit 11: Realization to move up gradually
Net realizations (INR/unit)
Exhibit 12: Margins to improve slightly going ahead
13.9
13.3
13.5
EBITDA (incl. MVML) (%)
13.5
13.5
13.7
13.3
13.7
12.5
Source: Company, MOSL
Source: Company, MOSL
Exhibit 13: Capital efficiency to remain stagnant
RoE (%)
RoIC (%)
Exhibit 14: FCF to improve despite high capex plans
CFO
Capex
55.5
37.8
27
(10)
35.6
39
37
FCF
50.1
38
53.1
65.5
73.9
42.4
28.4
28
14
(13)
(14)
46
32
55
(20)
(22)
(18)
(25)
(25)
(25)
Source: Company, MOSL
Source: Company, MOSL
20 July 2017
6

Mahindra & Mahindra
Exhibit 15: P/E and P/B bands
30
20
10
0
P/E (x)
5 Yrs Avg(x)
19.7
15.6
13.4
1.5
0.0
15 Yrs Avg(x)
10 Yrs Avg(x)
18.1
6.0
4.5
3.1
3.0
2.9
P/B (x)
5 Yrs Avg(x)
15 Yrs Avg(x)
10 Yrs Avg(x)
3.1
2.7
Source: MOSL
Source: MOSL
Exhibit 16: Comparative valuation
CMP
(INR)*
Auto OEM's
Bajaj Auto
Hero MotoCorp
TVS Motor
M&M
Maruti Suzuki
Tata Motors
Ashok Leyland
Eicher Motors
Auto Ancillaries
Bharat Forge
Exide Industries
Amara Raja Batteries
BOSCH
Endurance Tech
Rating
TP
(INR)
P/E (x)
FY18E FY19E
19.7
19.0
35.2
20.7
25.8
14.9
19.4
33.9
30.5
22.6
24.7
37.5
28.9
16.8
19.0
22.2
17.3
19.9
7.2
15.0
26.5
23.1
18.3
20.6
31.8
22.7
EV/EBITDA (x)
FY18E FY19E
13.5
12.4
23.3
14.9
16.0
4.4
9.7
27.5
18.1
14.4
14.1
25.1
14.0
11.3
12.2
15.2
12.8
12.7
2.8
7.8
22.7
14.5
11.8
11.6
21.4
11.7
RoE (%)
FY18E FY19E
23.1
36.0
28.6
14.1
20.8
16.5
24.5
40.8
19.8
14.8
20.4
21.1
22.4
24.4
31.0
35.2
14.6
22.8
27.3
27.1
38.0
22.3
15.9
20.7
21.9
23.6
Div Yield (%) EPS CAGR (%)
FY18E FY19E
FY17-19E
2.3
2.4
0.5
1.4
1.1
0.1
1.9
0.5
0.7
1.0
0.6
0.9
0.4
2.8
2.4
0.8
1.4
1.3
0.1
2.1
0.6
0.9
1.0
0.7
1.1
0.8
12.7
8.4
48.5
21.3
23.6
80.2
24.4
34.0
37.8
20.8
20.3
27.3
28.6
2,825
Buy
3,359
3,766 Neutral 3,666
574
Buy
606
1,383
Buy
1,625
7,561
Buy
8,483
461
Buy
631
107
Buy
122
29,181
Buy
31,326
1,148
Buy
1,330
218
Buy
286
835
Buy
1,073
24,366 Neutral 23,738
881
Buy
1,025
Source: Company, MOSL
20 July 2017
7

Mahindra & Mahindra
Financials and Valuations
Income Statement
Y/E March
Net Op. Income
Change (%)
Total Expenditure
EBITDA
Margins (%)
Margins (%, incl. MVML)
Depreciation
EBIT
Int. & Finance Charges
Other Income
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
Application of Funds
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
2013
404,412
27.0
357,319
47,093
11.6
13.9
7,108
39,985
1,912
5,177
906
44,156
10,943
24.8
33,214
15.4
8.2
32,532
16.5
35,438
2014
405,085
0.2
357,873
47,212
11.7
13.5
8,633
38,579
2,592
7,180
528
43,694
6,111
14.0
37,584
13.2
9.3
37,129
14.1
38,605
2015
384,448
-5.1
342,714
41,734
10.9
12.5
9,749
31,985
2,143
9,883
3,357
43,082
8,478
19.7
34,604
-7.9
9.0
31,908
(14.1)
31,595
2016
408,751
6.3
362,551
46,199
11.3
13.5
10,681
35,518
1,861
8,499
687
42,845
10,799
25.2
32,046
-7.4
7.8
31,532
(1.2)
33,394
2017
437,854
7.1
390,161
47,693
10.9
13.5
13,272
34,421
1,456
13,425
0
46,390
12,319
26.6
34,072
6.3
7.8
34,072
8.1
37,429
2018E
490,453
12.0
435,451
55,002
11.2
13.3
15,366
39,636
1,642
12,543
0
50,536
12,634
25.0
37,902
11.2
7.7
37,902
11.2
40,355
(INR Million)
2019E
2020E
560,991
631,361
14.4
12.5
496,861
558,080
64,130
73,281
11.4
11.6
13.7
13.7
17,581
20,333
46,549
52,948
1,642
1,642
13,008
14,188
0
0
57,915
65,493
14,479
16,373
25.0
25.0
43,436
49,120
14.6
13.1
7.7
7.8
43,436
49,120
14.6
13.1
47,215
53,011
(INR Million)
2019E
2020E
2,968
2,968
311,321
348,569
314,289
351,537
2,057
2,057
27,374
27,374
343,721
380,968
2013
2,952
143,638
146,589
6,149
42,792
195,530
2014
2,952
164,961
167,912
8,897
48,787
225,596
2015
2,957
189,594
192,551
9,797
46,615
248,963
2016
2,963
221,269
224,232
-54
18,436
242,614
2017
2,968
253,728
256,696
2,057
27,374
286,127
2018E
2,968
279,758
282,726
2,057
27,374
312,157
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)
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)
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
139,386
63,426
75,960
15,622
135,474
123,286
26,879
24
25,116
23
22,870
17,103
31,317
107,728
66,780
60
30,300
10,648
15,558
242,614
153,044
76,698
76,346
20,379
179,022
112,744
27,156
23
29,185
25
16,870
5,398
34,135
102,365
71,581
60
19,380
11,405
10,379
286,127
(0)
188,424
92,064
96,360
10,000
182,955
136,282
32,249
24
32,249
24
27,571
10,078
34,135
113,439
80,622
61
19,380
13,437
22,842
312,157
0
213,424
109,645
103,779
10,000
197,955
158,954
36,887
24
36,887
24
39,517
11,527
34,135
126,967
92,218
61
19,380
15,370
31,987
343,721
0
238,424
129,978
108,446
10,000
212,955
190,030
41,514
24
41,514
24
59,894
12,973
34,135
140,463
103,785
61
19,380
17,298
49,568
380,968
0
20 July 2017
8

Mahindra & Mahindra
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
Other Items
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
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
2016
52.7
55.8
52.1
71.2
378.4
12.0
26.3
2017
56.9
62.5
54.3
79.8
432.4
13.0
22.7
2018E
63.3
67.4
66.7
89.7
476.3
20.0
36.4
2019E
72.6
78.9
79.9
102.8
529.4
20.0
31.8
2020E
82.1
88.6
87.3
117.0
592.2
20.0
28.1
22.1
25.5
17.3
16.7
1.8
3.2
0.9
20.5
20.7
15.4
14.5
1.6
2.9
1.4
17.5
17.3
13.5
12.2
1.4
2.6
1.4
15.6
15.9
11.8
9.0
1.1
2.3
1.4
24.3
19.2
72.5
20
22
51
17
2.0
23.6
18.7
55.6
23
26
55
37
1.8
17.7
14.2
35.4
25
23
52
35
1.5
15.1
13.4
37.0
23
24
60
14
1.7
14.2
13.3
36.5
25
23
60
9
1.5
14.1
13.1
36.8
24
24
61
17
1.6
14.6
13.6
37.2
24
24
61
21
1.6
14.8
13.9
40.9
24
24
61
29
1.6
0.3
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
0.3
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
0.2
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
0.1
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
0.1
2017
34,421
13,425
13,272
-10,208
-822
50,088
0
50,088
-18,416
31,672
-43,548
-61,964
7,359
8,939
-1,456
-7,885
6,957
-4,918
22,870
18,120
0.1
2018E
39,636
12,543
15,366
-12,634
-1,763
53,148
0
53,148
-25,000
28,148
-3,933
-28,933
1,923
0
-1,642
-12,040
-11,760
12,456
16,870
29,494
0.1
0.1
(INR Million)
2019E
2020E
46,549
52,948
13,008
14,188
17,581
20,333
-14,479
-16,373
2,802
2,796
65,462
0
65,462
-25,000
40,462
-15,000
-40,000
1,923
0
-1,642
-12,040
-11,760
13,702
27,571
41,441
73,891
0
73,891
-25,000
48,891
-15,000
-40,000
1,923
0
-1,642
-12,040
-11,760
22,132
39,517
61,817
20 July 2017
9

Disclosures
This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be distributed by it
and/or its affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an
offer, invitation or inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution
and has been furnished to you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into
account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their
particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses
on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a some
companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or its affiliates are
seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this material may educate
investors on investments in such business . The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of
gathering, applying and interpreting information. Our research professionals are paid on twin parameters of performance & profitability of MOSt.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
Additionally, MOSt generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and
other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and
investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing among other things,
may give rise to real or potential conflicts of interest. MOSt and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the
financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other
related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent
of the views of the affiliates of MOSt even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a
company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment horizon,
etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or employees
from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt or any of its affiliates or
employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is based on publicly
available data or other sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions provided by that third party
either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or
developments referred to in the document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to update the information. Also there may be
regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may
arise to any person from any inadvertent error in the information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any
matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own
investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on this
report or for any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any
compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned
in this report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
Pending Regulatory inspections against Motilal Oswal Securities Limited:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry
and adjudge violation of SEBI Regulations; MOSL replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have
requested to SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -Click
here to access detailed report
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research
receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Mahindra & Mahindra
NOTES
Disclosure of Interest Statement
Analyst ownership of the stock
No
Served as an officer, director or employee -
No
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has
an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Kong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of
Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation
of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not
conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is
not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States.
Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S.
persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors").
This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors
and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S.
registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and
therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in
the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Varun Kumar
Varun.kumar@motilaloswal.com
Contact : (+65) 68189232
Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931
MAHINDRA & MAHINDRA
20 July 2017
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
Motilal Oswal Securities Ltd
10