Welcome to Mycarhelpline Community Blog

Mahindra & Mahindra : Long Term Stock Pick

Mahindra & Mahindra - one of the leading Automobile Manufacturers not only in India but World is our Long Term Stock Pick. Buy it for a target of 50% appreciation in coming 2 years



M&M is on a fast track growth. The company is expanding its dealer network and also the product mix - been the SUV King - from Quanto, Xylo, Scorpio and XUV 500 - Mahindra is coming with Ssangyong Rexton in 2.5 Litre Diesel Engine in 20 Lakh price segment to challenge the leader Fortuner.

XUV 500 despite of series of price hike is a wonder for M&M with huge demand and orders piled up. Quanto with its aggressive pricing will also be one of the major game changers for Entry Level SUV.


M&M has already been showing consistent growth and has now become the 3rd largest passenger car aker in India by surpassing Tata Motors this September. Moreover- the Automotive division including tractors has shown a cumulative highest ever sales in Sep 2012 with impressive performance which was a lean month with all manufacturers Mahindra, Maruti, Nissan and Renault showing degrowth

Financials & Stock Price

The stock is trading near to its 52 week high with last closing price at 860 Rs. - With EPS of 50 and further growth @ 15% for next 2 years ,current Industry P/e at 19 and expected to grow to 20 with Mahindra to show growth. At P/e of 20 - the fair value becomes around Rs. 1300 in next 2 years

Mahindra has also been increasing prices of there passenger cars - without having any impact on the sales

Moreover the Ssangyong Acquisition will help M&M the technology and an opportunity to enter in premium segment SUV + lower costing with joint synergy with Ssangyong.

If the fundamentals are strong and company on an expansion mode - no matter what - the stock is always good to buy, Recommended a strong buy in Mahindra & Mahindra for medium term perspective

New Maruti Suzuki Alto 800 - A Big Craze of Coming...
High Security Number Plate - Deadline and New Chan...

Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments



Have Query, best to raise query in Forum. Else, may add thoughts on the Post as Comment
Wednesday, 18 September 2019

Captcha Image