The UK FTA trade agreement once signed will make luxury car import duty reduced in India.
Is this risk already baked in the price for M&M? Maruti ideally should not be affected much given that they are still majorly a people’s car producer. Tata Motors may infact benefit since they can import their JLRs.
But the reduction of import duty is expected to be gradual over 5-10 years plus there are some quota talks aswell… India's carmakers back zero duty on limited British imports under trade deal: sources - The Economic Times
There is a huge gap between M&M and JLR prices. Reduced duty won’t impact this gap considerably. Different market segments altogether.
Though i dont know which models might compete with our Indian car maker models but I believe there will be some market share loss. Else the association would not seek terms like a) gradual duty reduction b) quota system for the import numbers…
But I think maybe its already built in the price, why else would it trade at 12 EV/EBIDTA while Maruti trades at 18! Even though Last 5 yrs M&M Revenue has been above Maruti and avg 5 yr OPMs have been almost 70% more…
Anyone tracking M&M?
Good times ahead, with:
- robust sales performance especially XUV700 where sales jumped 40% in July following price cut.
- good operational performance in Q1 and most brokers upgraded targets and EPS expectation,
- Thar much anticipated 5-door launch on 15th Aug,
- tractor performance will get a boost due to budget allocation.
While the stock has rallied along with other Auto companies, I expect outperformance in near-term, primarily driven by upbeat SUV performance and company gaining market share across segments.
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Pardon if this is some accounting nuance I am not aware of, but
Can someone explain, what is the reason behind sudden rise of receivables since FY23 onwards?
I do not see such anomaly in the receivables in the balance sheet
I also dont see them in the annual report though :
https://www.bseindia.com/xml-data/corpfiling/AttachHis/09ee6a86-fe09-444c-baf3-b7e68b0775ee.pdf
So, probably something wrong with screener.
