Index

Sl. No.

Content

Page No.

About The Company

10 Years EPS, DPS, Book & Market Value Per Share

Growth Rate, Payout Ratio And Cost of Equity

Weighted average cost of capital (Book value & Market value weights)

Audited B/S and Required Notes on Accounts

Appendix

Mahindra & Mahindra Ltd. Financial Data of Last 10 years

Appendix

About Mahindra & Mahindra Ltd.

Source: http://www.mahindra.com

Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to bring
the iconic Willys Jeep onto Indian roads. Over the years, weve diversified into many new businesses
in order to better meet the needs of our customers. We follow a unique business model of creating
empowered companies that enjoy the best of entrepreneurial independence and Group-wide
synergies. This principle has led our growth into a US $16.2 billion multinational group with more
than 180,000 employees in over 100 countries across the globe.
Today, our operations span 18 key industries that form the foundation of every modern economy:
aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting
services, defense, energy, farm equipment, finance and insurance, industrial equipment, information
technology, leisure and hospitality, logistics, real estate, retail, and two wheelers.
Our federated structure enables each business to chart its own future and simultaneously leverage
synergies across the entire Groups competencies. In this way, the diversity of our expertise allows
us to bring our customers the best in many fields.
Mahindra & Mahindra Limited / Mahindra Rise
Type
Traded as
Industry
Founded
Headquarters
Area served
Key people
Products
Revenue
Net income
Total assets
Employees
Parent
Subsidiaries
Website

Public
BSE: 500520
BSE SENSEX Constituent
Automotive
1945 (Ludhiana)
Mumbai, Maharashtra, India
Worldwide
Anand Mahindra (MD)
Automobiles, commercial vehicles, two-wheelers
Rs. 598.53 billion(US$9.2 billion) (2012)
Rs. 31.26 billion(US$480 million) (2012)
Rs. 483.50 billion(US$7.4 billion) (2012)
15,147 (2012)[2]
Mahindra Group
Mahindra Two Wheelers limited
SsangYong Motor Company
www.Mahindra.com

Last 10 Years EPS, DPS, and Book Value Per share &
Market Value per Share
1. Table Showing EPS of Last 10 years:
Year

12-13

11-12

10-11

09-10

08-09

07-08

06-07

05-06

04-05

03-04

EPS

54.61

46.89

43.36

36.89

30.69

46.15

44.88

36.72

45.92

30.04

EPS=Earnings Per Share

Graph Showing EPS

60

Amount in Rupees

50
40
30
20
10
0
Earnings Per Share
Face Value

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

30.04

45.92

36.72

44.88

46.15

30.69

36.89

43.36

46.89

54.61

10

10

10

10

10

10

Axis Title
Earnings Per Share

Face Value

2. Table Showing DPS of Last 10 years

Year

12-13

11-12

10-11

09-10

08-09

07-08

06-07

05-06

04-05

03-04

F.V

10

10

10

10

10

10

Div %

260%

250%

230%

190%

100%

115%

DPS

13

12.5

11.5

9.5

10

11.5

11.5

10

13

DPS=Dividend Per share, F.V: face Value of a share

Interpretation: Company did not pay dividend in continuous 4 year because

company was expanding its business and utilized the profit instead of paying
dividend. Resultantly share prices were gone up in share market and shareholder
wealth was maximized.

RELATIVE GRAPH FOR FACE VALUE, DIV % & DPS

300
250

VALUE IN RUPEES

200
150
100
50
0

2004

2005

2006

2007

2008

2009

Face Value

10

10

10

Dividend Per Share

13

10

Dividend %

10

10

10

11.5

11.5

10

9.5

11.5

12.5

13

115

100

190

230

250

260

AXIS TITLE

2010

2011

2012

2013

3.Table Showing Book Value Per Share of Last 10 years

Year 12-13
B.V

11-12

10-11

09-10

08-09

07-08

06-07

05-06

04-05

03-04

238.75 198.23 167.99 138.02 191.91 181.43 148.72 124.06 178.95 151.73
B.v=Book Value

Comparision of Face Value & Book Value

300

Value in Rupees

250
200
150
100
50
0
Face Value

2004
10

Book Value (Rs) 151.73

2005

2006

2007

2008

2009

2010

2011

2012

2013

10

10

10

10

10

178.95

124.06

148.72

181.43

191.91

138.02

167.99

198.23

238.75

Axis Title

4. Table Showing Market Value Per share of Last 10 Years

Year
High
Low
MV

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

139.5

262.23

454.98

501

436

549.35

826.4

874.75

976

1026

89.5

105

244

304

117.75

129.4

475.13

585.1

621.1

740.15

114.5

183.615

349.49

402.5

276.875

339.375

650.765

729.925

798.55

883.075

HIGH-LOW & MARKET VALUE PER SHARE

1200

1000

PRICE OF SHARE

800

600

400

200

0
High

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

139.5

262.23

454.98

501

436

549.35

826.4

874.75

976

1026

Low

89.5

105

244

304

117.75

129.4

475.13

585.1

621.1

740.15

MV

114.5

183.615

349.49

402.5

276.875

339.375

650.765

729.925

798.55

883.075

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Last 10 Years Growth Rate, Payout Ratio And Cost of

Equity by Div. Growth Model & CAPM
5. Table Showing Growth Rate of Last 10 years
1. Year

12-13

11-12

10-11

09-10

08-09

07-08 06-07 05-06 04-05 03-04

Div

260%

250%

230%

190%

100%

115%

115%

100%

130%

90

GR

4%

9%

21%

90%

-13%

0%

15%

23%

44%

GR=Growth Rate

6. Table Showing Payout Ratio of Last 10 years

Year 12-13

11-12

10-11

09-10

08-09

07-08

06-07

05-06

04-05

03-04

DPS

13

12.5

11.5

9.5

10

11.5

11.5

10

13

EPS

54.61

46.89

43.36

36.89

30.69

46.15

44.88

36.72

45.92

30.04

PR

23.8% 26.65% 26.52% 25.75% 32.58% 24.91% 25.62% 27.23% 28.31% 29.96%
PR= Payout Ratio
Payout Ratio= DPS/EPS

7. Calculation of Cost of Equity :

A. Dividend Growth Model

FORMULA= D1/P0 + g

where,

D1 = Dividend for next year

P0 = Current market price of the share
g = Growth
Ke = Cost of equity

D1
P0
F.V.

13

10

114.5 183.62 349.49

10

g (%)

11.5

11.5

402.5

10

9.5

11.5

12.5

13

276.88 339.4 650.77 729.93 798.55

883.075

10

10

10

10

10

0.44

-0.23

0.15

0.00

-0.13

-0.05

0.21

0.09

0.04

Ke (By Book Value)

1.30

1.44

0.92

1.30

1.00

0.82

2.25

2.71

2.69

Ke (By Market
Value)

0.11

0.50

-0.20

0.18

0.04

-0.10

-0.03

0.23

0.10

A. CAPM

MARKET SHARE
PRICE (Y)

NSE
(X)

Return NSE X
(% Change)

Return Share Y
(% Change)

899.92

5824.45

10.23

19.32

754.18

5283.83

-1.25

4.59

721.08
624.63

5350.90
5515.55

-2.99
41.89

15.44
82.40

342.44

3887.10

-11.78

24.38

275.33

4406.03

-9.49

-28.54

385.26
324.28
160.02

4867.90
3324.38
2372.55

46.43
40.12
36.78

18.81
102.64
40.52

113.88

1734.63
16.66

A=
XXmean
-6.43
17.91
19.65
25.23
28.44
26.15
29.77
23.46
20.12
16.66

B=
YYmean
11.74
26.47
15.62
51.34
-6.69
59.60
12.26
71.58
9.46
31.06

31.06

R s R f ( Rm R f )

Cost Of Equity
10.31

X2

75.47

104.69

474.23

1.57

306.91
1295.47

8.91
1755.08

190.14

138.71

1558.43

90.03

-364.93
1679.12
190.20

2155.79
1609.47
1352.47

517.53

0.00

Rf

5922.58 7216.73
Beta

Rf = 8.85% For 364 Days as per RBI

A*B

0.820673319

8.85

K= R+ (R- R)
Where R= Risk free Rate, R=Market Return, = systematic risk
R= Current Rate of return on 10 year Treasury bill=8.65%
R= 10.53% =Market Return
=0.8206 (as per calculation from NSE data)
K=8.65+0.8206(10.53-8.65) =10.31%