Mr. Anand Mahindra is the only Public figure from Auto Sector or may be from any manufacturing, which is highly followed on Twitter. M&M is not so common in portfolio as its Tata may be because of its conservative approach to its production or driving company. 26% stake is owned by family and may be he is the last hierarchy to manage group. Interesting to know M&M has 41% share of SUV in india while SUV is 55% source of companies cash Flow. On the tractor side, it has 1/3rd cash flow from that segment. Considering the balance sheet, its net consolidated debt of the group is almost nil. But why i wont prefer this for a long term portfolio against its peers. Why? Firstly, it does not invest much over research department against its peers and Secondly, its betting on SUV only and has very narrow product range. Now today the craze is of SUV so company is getting a edge over it but what if the craze is over? M&M doesnt have much holding in sedan or small segment. Do to over crowd in Cities people are shifting their ideas from SUV to small cars. Company said they are exploring rural markets but i doubt they could get much market out from rural. Thirdly, after Mr. Mahindra resigns the company we have to watch out for the guy in charge whether he is capable of doing it as good as Mr. Mahindra. So in all company is conservative one, but probably looking at american buy-out for technology improvement. Before entering with a long term view we need to wait and watch.
This is my personal view and there may be some biasness. Please study carefully before investing on my idea
This is my personal view and there may be some biasness. Please study carefully before investing on my idea
No comments:
Post a Comment