Re: {LONGTERMINVESTORS} Mahindra & Mahindra - thread for discussions.

[Rajesh Desai]

KIM - MM: To launch Mahindra Reva electric car 'e20' by middle of this month; Mild positive
Mahindra & Mahindra (MM), as expected, will launch this electric car, which has a capacity to run 100km on one charge. It is yet to announce the price for this car. MM has a capacity to make 30k units per year of this car, which will use the latest lithium ion batteries. This will make small addition to revenue and earnings, which is in our forecast for FY14. We like MM for its outperformance over the auto sector and attractive valuation and maintain BUY on the stock. Our TP of Rs1059/sh based on sum-of-the-parts valuation.

[Rajesh Desai]

Mahindra & Mahindra to take on Tata Motors, launch more mini trucks

After grabbing a sizeable share from Tata Motors in the utility vehicle market, Mahindra & Mahindra is adding more mini trucks to its portfolio in a bid to challenge the dominance of India's leading truck maker by market share. M&M is working on a new platform, codenamed P601, to take on Tata Motors' Ace Zip and Magic Iris - brands driving the volumes for the largest truck maker in the mini truck space. M&M is likely to invest 300-350 crore in the platform. The product is likely to hit the market in the first half of 2015 and will be manufactured at M&M's Zaheerabad plant.

 

While M&M was the first to launch Gio, a 0.5 tonne four wheeler small commercial vehicle and a better cargo mover alternative for three wheelers, it has not managed to get a good response from the market. M&M sells just 400 units a month as against several thousand units of Tata Motors Ace Zip. M&M has a market share of 22% in small commercial vehicle space, with close to 18% share in 0.75 tonne space with its Maxximo selling about 6,000 units on the LTV (Maxximo) platform. The company is the market leader in the pickup truck space with over 50% share in the Bolero and Genio pickup truck space (2-3.5 tonne).



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CA. Rajesh Desai