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ANALYSIS
MAHINDRA AND MAHINDRA LTD
PRESENTED BY
RAHUL RAJ
FISAT BUSINESS SCHOOL
ANGAMALY, KERALA
(Copy Right protected by Rahul.raj1988)
CONTENTS
1.About M & M Ltd
2.Financial Highlights
3.Form Of Debts Used
4.Percentage Of Debt
5.Capital structure analysis
6.Findings of Analysis
ABOUT MAHINDRA AND MAHINDRA
Mahindra embarked on its journey in 1945 by
assembling the Willys Jeep in India and is now a US $6.3 billion
Indian multinational. It enjoys a leadership position in utility
vehicles, tractors and information technology, with a significant
and growing presence in financial services, tourism,
infrastructure development, trade and logistics. The Mahindra
Group today is an embodiment of global excellence and enjoys a
strong corporate brand image.
Financial Highlights
NUMBER OF EQUITY 272615960
SHARES
(face value Rs 10)
TOTAL CAPITAL 9314.84
EBIT 1071(Crs)
9314.84
home
Debt equity ratio = 2976.21 / 5262.08 = .
56 home
• Long term source provide more than 60%
of total debt
Long term debt = 2976.21
Total debt = 4052.26
= 134*.65/ 4052.26
=.2.9%
home
BALANCE SHEET P & L
WACC = Cost Of Equtity * Weighted Average Equity +
Cost Of Debt * Weighted Average Debt
= 2.6%
BALANCE SHEET home P & L
Interest Coverage ratio = EBIT / Interest on
debt
2009 2008
= 1071.5 / 134.12 =1258/87.59
= 7.65 = 14.5
FINDINGS OF ANALYSIS
CLICK
The Profit for the year before Depreciation,
Interest, Exceptional items and Taxation was
Rs.1,362.97 crores as against Rs.1,496.94 crores
in the previous year, a declineof 8.95%. Profit
after tax for the period 1 st February, 2008 to
31stMarch,2008 was Rs.867.51 crores as against
Rs.1,103.37 crores in the previous year, a decline
of 21.38%
• M & M was first company in India to issue
convertible zero-interest bonds
• company raised Rs 961.52 croresin form of
ZCB’S it will not pay any interest over its
maturity period, and after convertion,
equity dividend will be on paid –up capital .
• 9.25% Fully and compulsory Convertible
debentures of Rs 700 crores
• Only 44 % of total debt have to be paid back
other debts are converted in to equity.
•
FINDINGS OF ANALYSIS
• WACC 09 < WACC 08 , So VALUE FIRM IS
MORE IN 09 COMPARED TO 08
• More debt in capital structure reduced
WACC IN 09(DEBT RATIO 43% IN 2009)
• EPS has decreased due to low return in
2009
•