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.
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…
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.
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
Sharing this just to highlight the increased competitive intensity that one can expect in the PV 4W category in India going forward , which could impact volumes and margins for all players.
BYD in India would be bad news for M&M. However, according to this video, they have been denied permission to setup plant in India. So, I guess, till the permission isn’t coming, we need not worry.
BYD is importing cars in India though. And import duty has been reduced to just 15%. That means major selling price impact?
so the import duty reduction is for premium EV cars i.e above 30.5lacs that too for 8000 units only. So the only M&M model which falls in this category would be XEV 9e but this is the model which saw 56% of the total bookings on the first day so the arrival of tsla can hurt but don’t think it would be that much especially in the initial couple of years on the other hand this could encourage the Indian brands for improving more and coming up with a more spectacular models.
I dug deeper into this. Actually, the receivables went up so much primarily because of loans given by Mahindra Financial Services Limited (MMFSL). This is a subsidiary of Mahindra and Mahindra which does lending.
I looked at the cash flow from operations in the annual report for FY23. If you go to page 373 you will see that Financial services receivables went up by 18,797.21 crores. This means this much amount of money went out of the company.
If you then go to page 394, you will be able to see that the loans given by the financial services vertical have increased by the same amount (18,797.21 crores) in FY23.
Also, if you look at the Asset side of the balance sheet (Page 368) you will notice an asset called ‘Loans’. That is where these loans given out reside. These loans are an asset for the company as the company will earn interest from these loans. Hope this clarifies.
