Mahindra & Mahindra - Numbers below its FY average runrate, but has been the most consistent player - Way2Wealth

Mahindra & Mahindra's Passenger UV segment observes growth on a low base as last year the company faced engine capacity constraints. But the segment has shown a very impressive performance with cumulative growth held up on account of new launches.

3W offtake seems improved demand. Infact numbers for August comes at its highest ever levels this FY.

Verito numbers in terms of % growth look inflated on account of low base, but the absolute numbers are below its 8 month average run rate.

Domestic growth for the company though moderating at a slower pace, is the best in the industry at a high double digit figure of 20%, on account of its diversified portfolio.

Exports for its UV's and 3W's see a significant decline on a MoM basis.

Proxy to rural demand, tractors continues its declining trend into the month of August. Infact a decline of 17% has come as a negative surprise.

Mahindra's smallest SUV launch of sub 4 meter length known as Quanto is expected in the second half of September 2012. This model is based on the Ingenio platform as is known to be as the Mini Xylo. The model would benefit from lower excise on account of its lower length, which may attract consumer interest. But whether it would be a success like XUV 5OO is yet to be seen.

Source : Equity Bulls

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