Project Report

(Project Semester-VI January – June, 2024)

Financial Performance Analysis of Automobile Sector in India

(A comparative study of Tata Motors, Mahindra & Mahindra and Maruti
Suzuki India.)

Submitted by
Pradeep Choudhary
21BCMN022

Under the Guidance of

University Guide:
Dr. Amit Kumar Sharma
Assistant Professor

Faculty of Management
JECRC UNIVERSITY, JAIPUR
January – June, 2024

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 DECLARATION

I hereby declare that the work reported in this report entitled “Performance
Analysis of Automobile Sector in India” resulted out of the Project Report for
semester 6th during the period January – June, 2024 is original and has not been
previously submitted anywhere else.

Name: Pradeep Choudhary

Enrolment No.: 21BCMN022

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 ACKNOWLEDGEMENT

I, Mr. Pradeep Choudhary, would like to take this opportunity to thank everyone for their
amazing excitement and support during this endeavor. I would like to thank Prof. Renu Parik,
Dean of Management, at JECRC University in Jaipur, for her guidance. I appreciate her giving
me this chance to enhance my experience.

I extend my heartfelt appreciation to Dr. Amit Kumar Sharma. His inspiring personality cleared
the way for my investigation and made it easier for me to reach my objective.

Last but not least, I express my gratitude to my family and friends for their unwavering support,
understanding, and patience during the long hours spent researching, writing, and editing this
report. Their encouragement has been a constant source of motivation and inspiration.

In conclusion, I extend my heartfelt thanks to all those who have contributed, directly or
indirectly, to the completion of this report.

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 Preface

The Indian automobile sector stands at a pivotal juncture, navigating through a myriad of
challenges and opportunities in an ever-evolving global landscape. As the world moves towards
sustainable mobility solutions and embraces technological disruptions, the Indian automotive
industry finds itself at the forefront of innovation, adaptation, and transformation. Against this
backdrop, it becomes imperative to undertake a comprehensive analysis of the performance of
the automobile sector in India.

This report aims to serve as a definitive guide, offering valuable insights into the multifaceted
dimensions of India's automotive industry. By delving deep into financial performance analysis,
and inter-company comparisons, this report endeavors to provide a holistic understanding of the
sector's trajectory.

Through meticulous analysis, this report will scrutinize the financial performance of major
players, and provide valuable insights into the competitive landscape.

In navigating through the challenges and opportunities that lie ahead, this report will offer
strategic recommendations for industry players to thrive in a competitive environment.
Additionally, it will put forth policy recommendations for the government to foster an enabling
ecosystem conducive to the sustainable growth of the automotive sector.

Ultimately, this report endeavors to serve as a comprehensive compendium for stakeholders

across the automotive value chain, including manufacturers, policymakers, investors,
researchers, and enthusiasts. By offering a nuanced understanding of the performance, trends,
and prospects of the Indian automobile sector, it seeks to catalyze informed decision-making and
drive the industry towards a sustainable and prosperous future.

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 Table of contents

S. No. Topic Pages

1 Introduction 6-10

2 Methodology 11-13

3 Discussion 14-30

4 Conclusion 31-33

5 Learning 34-36

6 Appendices 23-49

7 Bibliography 50

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 Chapter 1
Introduction

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 Introduction

1.1. Introduction to Indian Automobile sector

The Indian Auto sector is a significant contributor to the nation’s automotive industry, economy,
and employment. It encompasses a wide range of passenger vehicles, including hatchbacks,
sedans, SUVs, and luxury cars, catering to diverse consumer needs and preferences. This
comprehensive deep-dive analysis aims to provide an in-depth understanding of the Indian
automobile sector, covering historical development, market dynamics, key players, market share
dynamics, challenges, opportunities, and future prospects.

India is first in the production of tractors, second in the production of buses, and third in the
production of heavy trucks, giving it a strong position in the global market for heavy vehicles.

1.2. Objective

 To assess overall sector performance.

 To compare financial performance of Tata Motors, Mahindra & Mahindra and Maruti
Suzuki.
 To analyze fundamentals of these companies.

1.3. Historical Perspective

The history of the Indian auto sector dates back to the early 20th century when a few
international automakers started assembling cars in the country. However, it wasn’t until the
post-liberalization era in the 1990s that the sector witnessed significant growth and
transformation. Key milestones include:

 Pre-Independence Era: Limited presence of automobiles, primarily luxury cars for the
aristocracy.

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  Post-Independence to 1980s: Restricted import policies resulted in the emergence of
Hindustan Motors (Ambassador) and Premier (Padmini) as early Indian car
manufacturers.
 1990s: Liberalization led to the entry of global players such as Maruti Suzuki, Tata
Motors, Hyundai and Mahindra etc.
 2000s: Rapid expansion and modernization, introduction of new models, and improved
safety and emission standards.
 2010s: The emergence of SUVs, electric vehicles (EVs), and increasing focus on safety
and emission norms.

1.4. Market size

The Indian passenger car market was valued at US$ 32.70 billion in 2021, and it is expected to
reach a value of US$ 54.84 billion by 2027 while registering a CAGR of over 9% between 2022-
27. The global EV market was estimated at approximately US$ 250 billion in 2021 and by 2028,
it is projected to grow by 5 times to US$ 1,318 billion.

The electric vehicle (EV) market is estimated to reach Rs. 50,000 crore (US$ 7.09 billion) in
India by 2025. A study by CEEW Centre for Energy Finance recognized a US$ 206 billion
opportunity for electric vehicles in India by 2030. This will necessitate a US$ 180 billion
investment in vehicle manufacturing and charging infrastructure.

According to NITI Aayog and the Rocky Mountain Institute (RMI), India's EV finance industry
is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030. A report by the India Energy
Storage Alliance estimated that the EV market in India is likely to increase at a CAGR of 36%
until 2026. In addition, the projection for the EV battery market is expected to expand at a
CAGR of 30% during the same period.

Indian automotive industry is targeting to increase the export of vehicles by five times during
2016-26. In FY23, total automobile exports from India stood at 47,61,487.

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The automobile sector received a cumulative equity FDI inflow of about US$ 35.40 billion
between April 2000 - September 2023. India is on track to become the largest EV market by
2030, with a total investment opportunity of more than US$ 200 billion over the next 8-10 years.

1.5. Market Dynamics

1.5.1 Market Size and Growth

The Indian 4W market has experienced significant growth over the years, driven by factors such
as rising disposable incomes, urbanization, improved road infrastructure, and increased
consumer aspiration. The market size has consistently expanded, with annual sales reaching
millions of units.

1.5.2 Market Segmentation

The Indian 4W market is segmented into several categories, including:

 Hatchbacks: Compact and affordable vehicles, often favored by urban commuters.

 Sedans: Mid-size and full-size cars catering to families and corporate consumers.
 SUVs: Sports Utility Vehicles, including compact, mid-size, and luxury SUVs, which
have gained popularity due to their versatility and road presence.
 Luxury Cars: High-end vehicles from premium brands, attracting affluent buyers.
 Electric Vehicles (EVs): EVs are gaining traction due to environmental concerns and
government incentives.

1.5.3 Consumer Preferences and Trends

Consumer preferences in the Indian 4W sector are evolving:

 Safety: Consumers prioritize safety features like airbags, anti-lock braking systems
(ABS), and electronic stability control (ESC).

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  Fuel Efficiency: Fuel-efficient models, including hybrid and electric cars, are becoming
more popular.
 Connectivity: Infotainment systems, Smartphone integration, and connectivity features
are increasingly important.
 Sustainability: Growing environmental awareness has led to interest in EVs and cleaner
technologies.

1.6. Market Share

As per data released by Federation of Automobile Dealers Associations of India, in December

2023 the market share of different brands in four wheeler sector of India is as follows:

PV OEMs December Market share in December 2023 (in %)

2023 sales

Maruti Suzuki 1,18,295 40.37

Tata Motors 43,859 14.97

Hyundai Motor India 39,501 13.48

Mahindra & Mahindra 31,544 10.77

Kia Motors India 15,765 5.38

Toyota Kirloskar Motor 14,389 4.91

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1.5. Introduction of Companies

1.5.1 Tata motors

Tata Motors Limited is an Indian multinational automotive company headquartered in Mumbai

and is part of the Tata Group. It produces a wide range of vehicles including cars, trucks, vans,
and buses. The company has notable subsidiaries such as British Jaguar Land Rover and South
Korean Tata Daewoo, along with joint ventures with Hitachi and Stellantis. In 2021, it attracted a
significant investment of $1 billion from private equity firm TPG for its electric vehicle
subsidiary. Tata Motors has manufacturing and research facilities across India and in several
other countries including Argentina, South Africa, the United Kingdom, and Thailand. It is listed
on the Bombay Stock Exchange (BSE), the National Stock Exchange of India, and the New York
Stock Exchange. Natarajan Chandrasekaran serves as the chairman of Tata Group since 2017.
Additionally, Tata Motors has seen growth in its utility vehicle market share, reaching over 8%
in fiscal year 2019.

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1.5.2 Mahindra and Mahindra

Mahindra & Mahindra Limited (M&M) is an Indian multinational automotive manufacturing

corporation headquartered in Mumbai. Established in 1945 under the name Mahindra &
Mohammed, it later became known as Mahindra & Mahindra. As a part of the Mahindra Group,
M&M stands as one of India's largest vehicle manufacturers by production. Notably, its
subsidiary, Mahindra Tractors, holds the title of the world's largest tractor manufacturer by
volume. Fortune India 500 ranked M&M 17th among top companies in India in 2018. Within the
Indian market, it competes with major players such as Maruti Suzuki India and Tata Motors.
Currently, Dr. Anish Shah serves as the CEO and Managing Director of Mahindra & Mahindra.

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1.5.3 Maruti Suzuki India

Maruti Suzuki India Limited, previously known as Maruti Udyog Limited, is an Indian
automaker headquartered in New Delhi. Established on February 24, 1982, it formed a joint
venture and licensing agreement with Suzuki, the largest automaker globally, on October 2nd,
1982. Suzuki Motor Corporation (formerly Maruti Udyog Limited), a Japanese company, owns
Maruti Suzuki India Limited. Maruti Suzuki has dominated the Indian vehicle market for over 25
years since its inception. It commenced operations in 1983 with the launch of the Maruti 800 and
made its global debut by exporting 500 cars to Hungary. The company has become a key player
in the Indian car industry, manufacturing and selling cars in India. Its manufacturing facilities are
located in Gurgaon and Manesar, Haryana, with a cutting-edge research and development facility
in Rohtak, Haryana. From its humble beginnings with the Maruti 800 series, Maruti Suzuki India
Limited now offers a wide range of 16 car models with over 150 variants.

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 Chapter 2
Methodology

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 Methodology

The methodology section of this report outlines the systematic approach undertaken to gather,
analyze, and interpret data pertaining to the performance of the automobile sector in India.
Employing a combination of qualitative and quantitative research methods, this section
elucidates the process followed to ensure the reliability, validity, and comprehensiveness of the
findings presented in the report.

 Secondary Research: Secondary research complemented the primary research efforts by

collecting and analyzing data from secondary sources. This involved collating
information from industry reports, market studies, company websites, financial
statements, regulatory documents, and news articles. The secondary research phase
enabled the identification of key trends, statistics, and industry benchmarks relevant to
the analysis.

 Data Collection: Data collection was conducted using a multi-pronged approach,

encompassing both qualitative and quantitative data sources. Qualitative data and
Quantitative data, sourced from industry reports, financial statements, and statistical
databases, facilitated the analysis of market trends, financial performance metrics, and
consumer behavior patterns.

 Data Analysis: The collected data underwent rigorous analysis to derive meaningful
insights and conclusions. Qualitative data analysis involved thematic coding,
categorization, and interpretation of qualitative data collected to identify recurring themes
and patterns. Quantitative data analysis encompassed statistical techniques such as trend
analysis, comparative analysis and ratio analysis to discern relationships, trends, and
associations within the data.

 Ethical Considerations: Ethical considerations were paramount throughout the research

process, ensuring adherence to ethical principles such as confidentiality, informed

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 consent, and integrity in data collection and reporting. Participants' anonymity and
privacy were respected, and ethical guidelines were followed to maintain the integrity
and credibility of the research findings.

 Limitations: It is important to acknowledge the limitations inherent in the research

methodology, including constraints such as time limitations, resource constraints, and the
inherent subjectivity associated with qualitative research methods. These limitations were
mitigated to the extent possible through careful planning, transparency, and reflexivity in
the research process.

By adhering to a rigorous and systematic research methodology, this report endeavors to

provide a comprehensive and insightful analysis of the performance of the automobile sector
in India, thereby serving as a valuable resource for stakeholders across the automotive value
chain.

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 Chapter 3
Discussion

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 Tata Motors
3.1.1 SWOT Analysis
SWOT analysis is a strategic planning and strategic management technique used to help a
person or organization identify Strengths, Weaknesses, Opportunities, and Threats related
to business competition or project planning.

 Strengths:
I. Strong Brand Recognition and Reputation
II. Diverse Product Portfolio
III. Extensive distribution network
IV. Advanced technology adoption
V. Strong financial performance
VI. Large customer base
VII. Wide range of services
VIII. Global Presence

 Weaknesses
I. Dependence on domestic market
II. Service issues
III. Regulatory issues
IV. Slow pace of international expansion
V. High debt levels

 Opportunities
I. Expansion into emerging market
II. Electric vehicle segment
III. Digital transformation
IV. Strategic partnership and collaborations
V. Autonomous vehicle technologies
VI. Focus on sustainable practices

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 Threats
I. Intense competition
II. Regulatory issues
III. Cyber security threats
IV. Economic recessions
V. Fluctuations in raw material price

3.1.2 Ratio Analysis

 Profitability ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Operating Margin (%) 2.67 -3.39 0.258 -4.09 -1.55
Net Profit Margin (%) 0.68 -4.03 -5.21 -4.2 -9.58
Return on Net 5.32 -25.67 -24.34 -19.13 -47.9
worth/Equity (%)
Return on Capital 6.45 1.63 6.14 -0.25 2.49
Employed (%)
Return on Assets (%) 0.71 -3.46 -3.92 -3.74 -9.38

 Liquidity ratio

Particulars Mar- Mar-22 Mar-21 Mar-20 Mar-19

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Current Ratio 0.98 0.98 0.93 0.85 0.85
Quick Ratio 0.71 0.74 0.7 0.58 0.58

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 Capital Structure ratio

Particulars Mar- Mar- Mar-21 Mar-20 Mar-19

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Total Debt/Equity 2.77 3.13 2.08 1.58 1.51

 Coverage ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Interest Coverage Ratios 3.57 2.98 4.31 -0.06 0.7
(%)
Interest Coverage Ratios 3.57 2.98 4.31 -0.06 0.7
(Post Tax) (%)

 Turnover ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Asset Turnover Ratio 0.34 0.23 0.16 81.04 98.28
(%)
Inventory Turnover Ratio 11.84 4.63 4.53 4.02 4.52

 Valuation ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

P/E 57.89 -14.52 -8.16 -2.04 -2.05
P/B 6.22 3.4 1.93 0.385 0.975
Basic EPS (Rs.) 6.29 -29.88 -36.99 -34.88 -84.89
Diluted EPS (Rs.) 6.29 -29.88 -36.99 -34.88 -84.89

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3.1.3 Trend Analysis

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 Mahindra & Mahindra

3.2.1 SWOT Analysis of Mahindra and Mahindra

 Strengths
I. Diverse product portfolio
II. Strong presence in utility vehicles segment
III. Strong R&D capabilities
IV. Global expansion strategy

 Weaknesses
I. Relatively lower brand recognition globally
II. Dependence on domestic market
III. High reliance on SUV segment
IV. Vulnerability to economic fluctuations

 Opportunities
I. Growth in electric vehicle market
II. Expansion into emerging market
III. Technological innovation and partnerships
IV. Sustainability initiatives and CSR activities

 Threats
I. Intense competition in domestic and global markets
II. Regulatory changes and compliance cost
III. Supply chain disruptions
IV. Rapid technological shifts

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3.2.2 Ratio Analysis

 Profitability ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Operating Margin (%) 15.37 6.83 5.65 5.05 5.92
Net Profit Margin (%) 8.13 5.98 0.31 -1.78 4.44
Return on Net 18.24 13.95 4.35 0.31 13.29
worth/Equity (%)
Return on Capital 12.66 10.27 9.85 9.6 11.75
Employed (%)
Return on Assets (%) 4.99 3.77 1.08 0.07 3.25

 Liquidity ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Current Ratio 1.29 1.34 1.4 1.19 1.18
Quick Ratio 0.71 0.74 0.7 0.58 0.58

 Capital Structure ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Total Debt/Equity 1.57 1.58 1.43 1.56 1.35

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 Coverage ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Interest Coverage Ratios 3.69 3.11 1.86 1.8 2.45
(%)
Interest Coverage Ratios 3.69 3.11 1.86 1.8 2.45
(Post Tax) (%)

 Turnover ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Asset Turnover Ratio 0.34 0.49 0.45 0.45 0.64
Inventory Turnover Ratio 6.08 5.23 7.72 6.78 8.58

 Valuation ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

P/E 12.54 13.62 48.7 -24.78 13.78
P/B 2.20 1.58 1.74 -0.66 1.51
Basic EPS (Rs.) 92.41 59.2 16.33 -1.15 48.91
Diluted EPS (Rs.) 91.96 58.83 16.15 -1.04 48.7

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3.2.3 Trend Analysis

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29
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 Maruti Suzuki
3.3.1 SWOT Analysis of Maruti Suzuki
 Strengths
I. Strong brand image and reputation
II. Market leadership in India
III. Extensive distribution and service network
IV. Wide product portfolio across segments
V. ‘Strong financial performance

 Weaknesses
I. Overreliance on small cars
II. Limited presence in premium segment
III. Perception of lower build quality
IV. Lack of global presence

 Opportunities
I. Collaborations
II. Technological developments
III. Immense production potential
IV. LPG versions of cost-effective hatchbacks

 Threats
I. Controversies
II. Intense competition
III. Fall in market share
IV. Costs and expenses

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3.3.2 Ratio Analysis

 Profitability ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Operating Margin (%) 6.97 3.16 3.15 4.82 9.19
Net Profit Margin (%) 6.83 4.2 5.99 7.34 8.7
Return on Net 13.28 7.01 8.36 11.48 16.24
worth/Equity (%)
Return on Capital 16.02 8.08 9.52 13.6 21.16
Employed (%)
Return on Assets (%) 9.7 5.19 6.15 8.92 11.95

 Liquidity ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Current Ratio 0.58 0.99 1.15 0.75 0.87
Quick Ratio 0.36 0.78 0.96 0.46 0.64

 Capital Structure ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Total Debt/Equity 0.02 0.01 0.01 0 0

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 Coverage ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Interest Coverage Ratios 70.37 58.85 51.61 53.04 138.92
(%)
Interest Coverage Ratios 70.37 58.85 51.61 53.04 138.92
(Post Tax) (%)

 Turnover ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Asset Turnover Ratio 1.49 1.22 0.99 1.19 1.35
Inventory Turnover Ratio 11.94 12.07 23.08 23.54 25.9

 Valuation ratio

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

P/E 30.50 58.85 47.20 22.84 26.34
P/B 4.05 4.13 3.95 2.62 4.28
Basic EPS (Rs.) 271.82 128.43 145.3 187.95 253.26
Diluted EPS (Rs.) 271.82 128.43 145.3 187.95 253.26

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3.3.3 Trend Analysis

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 Comparative Analysis

INTERPRETATION –

Tata Motors – Tata Motors has the highest rate of increase in profit margins among its
competitors it was at its peak in Mar 23 at 0.68 % but there were negative profit margins in past
years due to conditions in international markets and heavy investments in R&D and
infrastructure.

Mahindra & Mahindra – Its profit margins are not that great when compared to its competitors
it was 4.44 % in Mar 19 and 8.13 % in Mar 23. It showed decline in profit margin mostly due to
covid 19 crisis, although it showed a positive growth over years.

Maruti Suzuki – It has the showed decrease in profit margin in due to covid 19 crises but has
maintained positive profits and performed best in peers during past years.

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INTERPRETATION –

Tata Motors – It has shown a positive growth in ROE in last years with -47.9 % in Mar 19 to
5.32 % in Mar 23. This is a one of the best sign for selecting a stock for investing due to its
tremendous growth.

Mahindra & Mahindra – It has showed sharp fall in ROE in comparison to its peers from 13.29
% in Mar 19 to 0.31 % in Mar 20due to covid 19 impact. But has recovered and crossed the pre
covid level.

Maruti Suzuki – Maruti has maintained ROE best among its peers but there is little fall from
16.24 % in Mar 19 to 13.28% in Mar 23 due to fall in market share.

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INTERPRETATION –

Tata Motors – Tata has increased and maintained a healthy current ratio in past 5 years from 0.8
in Mar 19 to 9.8 in Mar 23.

Mahindra & Mahindra- It has highest current ratio among its peers and has increased over
years from 1.18 in March 19 to 1.29 in March 23.

Maruti Suzuki – Maruti has lowest current ratio in comparison to its competitors and also it is
declining from 0.87 in Mar 19 to 0.58 in Mar 23. It is not able to maintain the ideal ratio which is
a point of concern for its existing shareholders.

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INTERPRETATION-

Tata Motors – Inventory turnover ratio of Tata Motors has increased with highest pace among
its peers with an increasing ratio from 4.52 in Mar 19 to 11.84 in Mar 23. This might be due to
increased market share over years.

Mahindra & Mahindra – It is able to maintain the inventory turnover ratio over years even
with increased competition.

Maruti Suzuki – Maruti has a declining Inventory Turnover Ratio with declining from 25.87 in
Mar 19 to 11.94 in Mar 23 due to decrease in market share.

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INTERPRETATION –

Tata Motors – Tata Motors has shown a positive growth in EPS increasing from -84.89 in Mar
19 to 6.29 in Mar 23. Increasing at this rate is a positive sign for investors.

Mahindra & Mahindra – It has also shown a positive growth in EPS increasing from 16.33 in
Mar 21 to 92.41 in Mar 23after a sharp fall in year 2020. M&M is increasing at a higher rate of
than that of a Tata Motors.

Maruti Suzuki – Maruti has highest EPS in terms of numbers and but it had declined from
253.26 in march 19 to 128.43 in march 19 but was also increased at a rate of more than 100 % in
2023 as compared to 2022 showing a positive sign for investors.

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 Chapter 4
Conclusion

42
 Conclusion

The present study deals with the evaluation of performance Analysis of the selected Automobile
firms in India (Tata Motors, Mahindra & Mahindra and Maruti Suzuki). The liquidity position of
the companies has been analyzed with the help of the current ratio and quick ratio. The solvency
position of the selected firms has been analyzed with the help of debt-equity ratio and interest
coverage ratio while for the profitability analysis Gross Profit, Operating Profit and Net Profit
Margins is used for Returns, return on Equity, Return on Capital Employed and Return on Assets
has been used. The study also revealed the Strengths, Weaknesses, Opportunities and Threats of
each of the companies. The main findings of the study and the conclusion drawn can be
summarized as follows:

 The mean value of profitability of selected automobile companies during the study period
was about 14 % indicating sound return for the shareholder of the company or
satisfactory profitability position.
 Liquidity ratios i.e. quick ratio and current ratio has been average and just able to
manages and maintain their ideal ratios but still firms had a satisfactory liquidity position
and have been able to meet short term obligations.
 Debt-Equity ratio of the selected firms has revealed that two firms have made significant
use of debt in their capital structure and remaining one has no or very less amount of
debt. All the firms have used debt in very appropriate manner as and when required.
 There has been a strong positive relation of sales with liquidity and profitability of firms
with increase in the sales of two firms apart from Maruti Suzuki.
 Sales of the selected automobile firms have significantly impacted liquidity and
profitability of the selected firms. However, sales had no significant impact on their
solvency.

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 Chapter 5
Learning

44
 Learning

Fundamental analysis can be important to investor when they are looking to invest in company.
If they find the financials of the company strong enough then they can invest in that company.

As per the analysis Automobile sector is booming with all the factors favoring it. It has revenue
of $ 118 billion in 2019 and projected revenue till 2024 is $ 200 billion. The Retail market in
India is estimated to be worth of US $ 1 trillion by 2035 and growing at a CAGR of about 8.1 %.
The Government of India encourages foreign investment in the automobile sector and has
allowed 100% FDI under the automatic route. Recently many initiatives has been taken by the
Government of India like in January 2024, the Ministry of Heavy Industries extended the tenure
of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one
year. The incentive will now be applicable for a total of five consecutive financial years, until
March 31, 2028.

I have done the analysis of 3 top companies of Automobile sector and came up with the result
that Tata Motors is the best stock according to some parameters that are: Inventory turnover
ratio, Current Ratio and increasing market share. This means that from increasing growth point
of view Tata Motors is the best company to invest in but when I calculated other ratios like Net
Profit Margin, Return on Equity and P/E Ratio the Mahindra & Mahindra was the clear winner.
To identify only one which is best among all, we will need to analyze each ratio in detail. After
analyzing each ratio and trend in detail we will find that from overall point of view Tata Motors
is the best stock or company to invest in as it has an increasing or growing ratios over years
while others companies ratios are either declining or having low pace growth.

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 Chapter 6
Appendices

46
 Appendices

1. Profit and loss statement of Tata Motors (from 2019 – 2023) (RS. in cr.)

PARTICULARS MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

INCOME

REVENUE FROM 342,874.58 275,235.23 246,972.17 258,594.36 299,190.59

OPERATIONS [GROSS]

Less: Excise/Service 0.00 0.00 0.00 0.00 0.00

Tax/Other Levies

REVENUE FROM 342,874.58 275,235.23 246,972.17 258,594.36 299,190.59

OPERATIONS [NET]

TOTAL OPERATING 345,966.96 278,453.62 249,794.75 261,067.97 301,938.40

REVENUES

Other Income 4,633.19 3,053.63 2,643.19 2,973.15 2,965.31

TOTAL REVENUE 350,600.15 281,507.25 252,437.94 264,041.12 304,903.71

EXPENSES

Cost Of Materials 208,944.31 160,920.56 141,357.27 152,671.47 181,009.08

Consumed

Purchase Of Stock-In 22,306.95 18,374.77 12,250.09 12,228.35 13,258.83

Trade

Operating And Direct 10,675.71 9,223.95 5,226.63 4,188.49 4,224.57

Expenses

Changes In Inventories Of -4,781.62 1,590.49 4,684.16 2,231.19 2,053.28

FGWIP And Stock In
Trade

Employee Benefit 33,654.70 30,808.52 27,648.48 30,438.60 33,243.87

Expenses

47
Finance Costs 10,225.48 9,311.86 8,097.17 7,243.33 5,758.60

Depreciation And 24,860.36 24,835.69 23,546.71 21,425.43 23,590.63

Amortization Expenses

Other Expenses 61,682.08 47,212.53 39,189.82 58,826.20 63,144.03

TOTAL EXPENSES 349,133.13 287,881.08 249,151.20 271,749.66 306,623.30

PROFIT/LOSS BEFORE 1,467.02 -6,373.83 3,286.74 -7,708.54 -1,719.59

EXCEPTIONAL,
EXTRAORDINARY
ITEMS AND TAX

Exceptional Items 1,590.53 -629.58 -13,761.02 -2,871.44 -29,651.56

PROFIT/LOSS BEFORE 3,057.55 -7,003.41 -10,474.28 -10,579.98 -31,371.15

TAX

TAX EXPENSES-
CONTINUED
OPERATIONS

Current Tax 3,258.35 2,669.98 1,710.18 1,893.05 2,225.23

Less: MAT Credit 0.00 0.00 0.00 0.00 0.00

Entitlement

Deferred Tax -2,554.29 1,561.31 831.68 -1,497.80 -4,662.68

Other Direct Taxes 0.00 0.00 0.00 0.00 0.00

TOTAL TAX EXPENSES 704.06 4,231.29 2,541.86 395.25 -2,437.45

PROFIT/LOSS AFTER 2,353.49 -11,234.70 -13,016.14 -10,975.23 -28,933.70

TAX AND BEFORE
EXTRAORDINARY
ITEMS

PROFIT/LOSS FROM 2,353.49 -11,234.70 -13,016.14 -10,975.23 -28,933.70

CONTINUING
OPERATIONS

PROFIT/LOSS FOR THE 2,353.49 -11,234.70 -13,016.14 -10,975.23 -28,933.70

48
PERIOD

Minority Interest -275.58 -132.71 -56.29 -95.62 -102.03

CONSOLIDATED 2,414.29 -11,441.47 -13,451.39 -12,070.85 -28,826.23

PROFIT/LOSS AFTER MI
AND ASSOCIATES

2. Balance sheet of Tata Motors (From 2019 – 2023)

(Rs. in crore)

BALANCE SHEET OF MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

TATA MOTORS (in Rs.
Cr.)

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 766.02 765.88 765.81 719.54 679.22

TOTAL SHARE CAPITAL 766.02 765.88 765.81 719.54 679.22

Reserves and Surplus 44,553.31 43,788.97 54,480.91 61,491.49 59,500.34

TOTAL RESERVES AND 44,553.31 43,788.97 54,480.91 61,491.49 59,500.34

SURPLUS

TOTAL 45,319.33 44,554.85 55,246.72 63,078.53 60,179.56

SHAREHOLDERS
FUNDS

Minority Interest 7,277.72 4,271.06 1,573.49 813.56 523.06

NON-CURRENT
LIABILITIES

Long Term Borrowings 88,695.81 97,759.17 93,112.77 83,315.62 70,817.50

49
Deferred Tax Liabilities 1,406.95 1,558.44 1,555.89 1,941.87 1,491.04
[Net]

Other Long Term 25,155.25 18,831.32 20,280.99 17,780.94 16,871.09

Liabilities

Long Term Provisions 13,196.53 12,955.89 13,606.76 14,736.69 11,854.85

TOTAL NON-CURRENT 128,454.54 131,104.82 128,556.41 117,775.12 101,034.48

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 36,964.66 41,917.87 21,662.79 16,362.53 20,150.26

Trade Payables 72,055.77 59,970.38 68,179.84 63,626.88 68,513.53

Other Current Liabilities 34,196.24 38,028.25 55,058.52 50,135.60 46,596.89

Short Term Provisions 11,810.66 10,766.31 12,848.03 10,329.04 10,196.75

TOTAL CURRENT 155,027.33 150,682.81 157,749.18 140,454.05 145,457.43

LIABILITIES

TOTAL CAPITAL AND 336,081.38 330,619.93 343,125.80 322,121.26 307,194.53

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 84,442.47 87,586.15 86,130.71 84,158.17 72,619.86

Intangible Assets 46,796.69 50,462.13 51,773.18 42,171.91 37,866.74

Capital Work-In-Progress 5,219.87 3,529.04 8,377.14 8,599.56 8,538.17

FIXED ASSETS 145,513.66 148,299.37 158,867.82 161,952.37 142,370.44

Non-Current Investments 7,540.85 6,670.31 5,569.09 5,446.94 6,240.89

Deferred Tax Assets [Net] 5,184.67 3,870.85 4,520.35 5,457.90 5,151.11

50
 Long Term Loans And 870.65 843.35 1,204.59 782.78 407.42
Advances

Other Non-Current Assets 24,602.48 23,151.34 25,272.59 28,116.96 28,845.64

TOTAL NON-CURRENT 184,552.91 183,642.39 196,238.16 202,534.01 183,763.37

ASSETS

CURRENT ASSETS

Current Investments 18,838.31 22,709.22 19,051.19 10,861.54 9,529.83

Inventories 40,755.39 35,240.34 36,088.59 37,456.88 39,013.73

Trade Receivables 15,737.97 12,442.12 12,679.08 11,172.69 18,996.17

Cash And Cash 37,015.56 40,669.19 46,792.46 33,726.97 32,648.82

Equivalents

Short Term Loans And 2,302.84 1,671.93 1,749.40 935.25 1,268.70

Advances

Other Current Assets 36,878.40 34,244.74 30,526.92 25,433.92 21,973.91

TOTAL CURRENT 151,528.47 146,977.54 146,887.64 119,587.25 123,431.16

ASSETS

TOTAL ASSETS 336,081.38 330,619.93 343,125.80 322,121.26 307,194.53

3. Cash Flow Statement of Tata Motors (From 2019-2023)

CASH FLOW OF TATA MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

MOTORS (in Rs. Cr.)

NET PROFIT/LOSS BEFORE 2,689.87 - - - -

EXTRAORDINARY ITEMS AND 11,308.76 13,395.10 11,975.23 28,724.20
TAX

Net Cash Flow From Operating 35,388.01 14,282.83 29,000.51 26,632.94 18,890.75
Activities

51
Net Cash Used In Investing - -4,775.12 - - -
Activities 16,804.16 26,126.25 34,170.22 19,711.09

Net Cash Used From Financing - -3,380.17 9,904.20 3,389.61 8,830.37

Activities 26,242.90

Foreign Exchange Gains / Losses 1,386.99 331.46 453.75 1,055.67 -1,410.92

Adjustments On Amalgamation 0.00 0.00 0.00 0.00 243.94

Merger Demerger Others

NET INC/DEC IN CASH AND -6,272.06 6,459.00 13,232.21 -3,092.00 6,843.05

CASH EQUIVALENTS

Cash And Cash Equivalents 38,159.01 31,700.01 18,467.80 21,559.80 14,716.75

Begin of Year

Cash And Cash Equivalents End 31,886.95 38,159.01 31,700.01 18,467.80 21,559.80
Of Year

4. Financial ratios of Tata Motors (From 2019 – 2023)

KEY FINANCIAL RATIOS OF MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

TATA MOTORS (in Rs. Cr.)

PER SHARE RATIOS

Basic EPS (Rs.) 6.29 -29.88 -36.99 -34.88 -84.89

Diluted EPS (Rs.) 6.29 -29.88 -36.99 -34.88 -84.89

Cash EPS (Rs.) 71.05 35.52 27.50 29.05 -15.73

Book Value 137.33 127.50 148.39 177.59 178.74

[ExclRevalReserve]/Share
(Rs.)

Book Value 137.33 127.50 148.39 177.59 178.74

[InclRevalReserve]/Share
(Rs.)

52
Revenue from 903.28 727.15 652.37 725.65 889.07
Operations/Share (Rs.)

PBDIT/Share (Rs.) 95.44 72.53 91.23 58.26 81.36

PBIT/Share (Rs.) 30.53 7.67 29.73 -1.29 11.89

PBT/Share (Rs.) 7.98 -18.29 -27.35 -29.41 -92.37

Net Profit/Share (Rs.) 6.14 -29.34 -33.99 -30.51 -85.20

NP After MI And SOA / Share 6.30 -29.88 -35.13 -33.55 -84.88

(Rs.)

PROFITABILITY RATIOS

PBDIT Margin (%) 10.56 9.97 13.98 8.02 9.15

PBIT Margin (%) 3.37 1.05 4.55 -0.17 1.33

PBT Margin (%) 0.88 -2.51 -4.19 -4.05 -10.38

Net Profit Margin (%) 0.68 -4.03 -5.21 -4.20 -9.58

NP After MI And SOA Margin 0.69 -4.10 -5.38 -4.62 -9.54

(%)

Return on Net Worth/Equity 5.32 -25.67 -24.34 -19.13 -47.90

(%)

Return on Capital Employed 6.45 1.63 6.14 -0.25 2.49

(%)

Return on Assets (%) 0.71 -3.46 -3.92 -3.74 -9.38

Total Debt/Equity (X) 2.77 3.13 2.08 1.58 1.51

Asset Turnover Ratio (%) 0.34 0.23 0.16 81.04 98.28

LIQUIDITY RATIOS

Current Ratio (X) 0.98 0.98 0.93 0.85 0.85

53
Quick Ratio (X) 0.71 0.74 0.70 0.58 0.58

Inventory Turnover Ratio (X) 2.21 1.59 0.91 6.97 7.74

Dividend Payout Ratio (NP) 0.00 0.00 0.00 0.00 0.00

(%)

Dividend Payout Ratio (CP) 0.00 0.00 0.00 0.00 0.00

(%)

Earnings Retention Ratio (%) 0.00 0.00 0.00 0.00 0.00

Cash Earnings Retention 0.00 0.00 0.00 0.00 0.00

Ratio (%)

COVERAGE RATIOS

Interest Coverage Ratios (%) 3.57 2.98 4.31 -0.06 0.70

Interest Coverage Ratios 3.57 2.98 4.31 -0.06 0.70

(Post Tax) (%)

VALUATION RATIOS

Enterprise Value (Cr.) 257,016.64 269,283.40 185,136.46 92,326.40 118,036.02

EV/Net Operating Revenue 0.74 0.97 0.74 0.35 0.39

(X)

EV/EBITDA (X) 7.03 9.70 5.30 4.40 4.27

Market Cap/Net Operating 0.47 0.60 0.46 0.10 0.20

Revenue (X)

Retention Ratios (%) 0.00 0.00 0.00 0.00 0.00

Price/BV (X) 3.55 3.73 2.09 0.41 0.98

Price/Net Operating Revenue 0.47 0.60 0.46 0.10 0.20

Earnings Yield 0.01 -0.07 -0.12 -0.47 -0.49

54
 5. Profit and Loss statement of Maruti Suzuki India (From 2019 – 2023)
(Rs. in Cr.)

PROFIT & LOSS ACCOUNT OF MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

MARUTI SUZUKI INDIA (in Rs.
Cr.)

INCOME

REVENUE FROM 112,511.30 83,799.80 66,571.80 71,704.80 83,038.50

OPERATIONS [GROSS]

Less: Excise/Service Tax/Other 0.00 0.00 0.00 0.00 0.00

Levies

REVENUE FROM 112,511.30 83,799.80 66,571.80 71,704.80 83,038.50

OPERATIONS [NET]

TOTAL OPERATING 117,571.30 88,329.80 70,372.00 75,660.00 86,068.50

REVENUES

Other Income 2,140.70 1,744.70 2,936.30 3,334.40 2,561.60

TOTAL REVENUE 119,712.00 90,074.50 73,308.30 78,994.40 88,630.10

EXPENSES

Cost Of Materials Consumed 46,669.60 39,739.60 33,296.40 34,634.80 45,025.70

Purchase Of Stock-In Trade 39,985.10 26,397.50 17,254.10 18,767.20 15,026.60

Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00

Changes In Inventories Of -403.90 -93.10 273.60 -238.70 211.60

FGWIP And Stock In Trade

Employee Benefit Expenses 4,634.60 4,051.40 3,431.60 3,416.20 3,285.00

Finance Costs 187.00 126.60 101.80 134.20 75.90

Depreciation And Amortization 2,825.70 2,789.00 3,034.10 3,528.40 3,020.80

Expenses

55
Other Expenses 15,805.50 12,672.70 10,837.50 11,889.60 11,638.50

TOTAL EXPENSES 109,566.30 85,539.20 68,156.30 72,010.00 78,162.00

PROFIT/LOSS BEFORE 10,145.70 4,535.30 5,152.00 6,984.40 10,468.10

EXCEPTIONAL,
EXTRAORDINARY ITEMS AND
TAX

Exceptional Items 0.00 0.00 0.00 0.00 0.00

PROFIT/LOSS BEFORE TAX 10,145.70 4,535.30 5,152.00 6,984.40 10,468.10

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 2,249.60 1,431.00 1,156.20 1,376.50 2,933.80

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00

Deferred Tax -137.50 -613.30 -224.30 48.70 39.40

Other Direct Taxes 0.00 0.00 0.00 0.00 0.00

TOTAL TAX EXPENSES 2,112.10 817.70 931.90 1,425.20 2,973.20

PROFIT/LOSS AFTER TAX 8,033.60 3,717.60 4,220.10 5,559.20 7,494.90

AND BEFORE
EXTRAORDINARY ITEMS

PROFIT/LOSS FROM 8,033.60 3,717.60 4,220.10 5,559.20 7,494.90

CONTINUING OPERATIONS

PROFIT/LOSS FOR THE 8,033.60 3,717.60 4,220.10 5,559.20 7,494.90

PERIOD

Minority Interest 0.00 0.00 0.00 -1.60 -1.50

CONSOLIDATED 8,211.00 3,879.50 4,389.10 5,676.00 7,649.10

PROFIT/LOSS AFTER MI AND
ASSOCIATES

56
 6. Balance Sheet of Maruti Suzuki India (From 2019 – 2023)
(Rs. in Cr.)

BALANCE SHEET OF MARUTI MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

SUZUKI INDIA (in Rs. Cr.)

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 151.00 151.00 151.00 151.00 151.00

TOTAL SHARE CAPITAL 151.00 151.00 151.00 151.00 151.00

Reserves and Surplus 61,640.30 55,182.50 52,349.60 49,262.00 46,941.10

TOTAL RESERVES AND 61,640.30 55,182.50 52,349.60 49,262.00 46,941.10

SURPLUS

TOTAL SHAREHOLDERS 61,791.30 55,333.50 52,500.60 49,413.00 47,092.10

FUNDS

Minority Interest 0.00 0.00 0.00 19.20 17.60

NON-CURRENT LIABILITIES

Long Term Borrowings 0.00 0.00 2.80 5.40 8.00

Deferred Tax Liabilities [Net] 0.00 0.00 445.40 657.50 613.90

Other Long Term Liabilities 2,609.90 2,214.10 2,168.70 2,175.60 2,037.10

Long Term Provisions 88.40 84.40 44.70 51.60 39.50

TOTAL NON-CURRENT 2,698.30 2,298.50 2,661.60 2,890.10 2,698.50

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 1,215.80 381.90 488.80 106.30 149.60

Trade Payables 11,785.50 9,765.20 10,168.10 7,498.80 9,637.70

57
Other Current Liabilities 6,143.60 6,015.10 4,720.80 3,019.60 3,747.80

Short Term Provisions 962.40 861.30 742.80 680.70 625.40

TOTAL CURRENT 20,107.30 17,023.50 16,120.50 11,305.40 14,160.50

LIABILITIES

TOTAL CAPITAL AND 84,596.90 74,655.50 71,282.70 63,627.70 63,968.70

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 17,282.50 13,397.30 14,764.50 15,408.60 14,986.20

Intangible Assets 547.90 349.90 224.20 335.80 451.10

Capital Work-In-Progress 2,815.20 2,646.20 1,199.30 1,344.30 1,606.90

FIXED ASSETS 20,734.50 16,683.70 16,485.50 17,159.60 17,044.20

Non-Current Investments 49,184.30 37,934.60 34,529.10 36,269.20 32,458.10

Deferred Tax Assets [Net] 279.40 141.10 0.00 0.00 0.00

Long Term Loans And 0.20 0.20 0.20 0.20 0.20

Advances

Other Non-Current Assets 2,782.90 3,102.50 1,723.60 1,758.10 2,093.50

TOTAL NON-CURRENT 72,981.30 57,862.10 52,738.40 55,187.10 51,596.00

ASSETS

CURRENT ASSETS

Current Investments 0.00 4,100.10 8,415.70 1,218.80 5,045.50

Inventories 4,283.50 3,532.30 3,049.00 3,213.90 3,322.60

Trade Receivables 3,301.40 2,034.50 1,279.90 1,977.70 2,312.80

58
 Cash And Cash Equivalents 41.60 3,042.20 3,047.10 29.00 187.80

Short Term Loans And 29.70 30.50 23.00 17.00 16.10

Advances

Other Current Assets 3,959.40 4,053.80 2,729.60 1,984.20 1,487.90

TOTAL CURRENT ASSETS 11,615.60 16,793.40 18,544.30 8,440.60 12,372.70

TOTAL ASSETS 84,596.90 74,655.50 71,282.70 63,627.70 63,968.70

7. Cash Flow Statement of Maruti Suzuki India (From 2019 – 2023)

(Rs. in Cr.)

CASH FLOW OF MARUTI SUZUKI MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

INDIA (in Rs. Cr.)

NET PROFIT/LOSS BEFORE 10,323. 4,697.20 5,321.00 7,102.80 10,623.80

EXTRAORDINARY ITEMS AND TAX 10

Net Cash Flow From Operating 9,251.4 1,840.50 8,856.20 3,495.80 6,600.90
Activities 0

Net Cash Used In Investing Activities - -239.20 - -556.60 -3,539.90

8,036.1 7,291.30
0

Net Cash Used From Financing - - - - -2,947.90

Activities 1,213.1 1,607.00 1,544.90 3,104.30
0

Foreign Exchange Gains / Losses 0.00 0.00 0.00 0.00 0.00

Adjustments On Amalgamation Merger 0.00 0.00 0.00 0.00 0.00

Demerger Others

NET INC/DEC IN CASH AND CASH 2.20 -5.70 20.00 -165.10 113.10
EQUIVALENTS

Cash And Cash Equivalents Begin of 35.10 40.80 20.80 185.90 72.80
Year

59
Cash And Cash Equivalents End Of 37.30 35.10 40.80 20.80 185.90
Year

8. Financial Ratios of Maruti Suzuki India (From 2019 – 2023)

KEY FINANCIAL RATIOS MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

OF MARUTI SUZUKI
INDIA (in Rs. Cr.)

PER SHARE RATIOS

Basic EPS (Rs.) 271.82 128.43 145.30 187.95 253.26

Diluted EPS (Rs.) 271.82 128.43 145.30 187.95 253.26

Cash EPS (Rs.) 359.58 215.45 240.21 300.91 348.20

Book Value 2,046.07 1,832.24 1,738.43 1,636.83 1,559.92

[ExclRevalReserve]/Share
(Rs.)

Book Value 2,046.07 1,832.24 1,738.43 1,636.83 1,559.92

[InclRevalReserve]/Share
(Rs.)

Revenue from 3,893.09 2,924.83 2,330.20 2,505.30 2,849.95

Operations/Share (Rs.)

PBDIT/Share (Rs.) 435.71 246.72 274.43 352.55 449.17

PBIT/Share (Rs.) 342.14 154.37 173.97 235.72 349.14

PBT/Share (Rs.) 335.95 150.18 170.60 231.27 346.63

Net Profit/Share (Rs.) 266.01 123.10 139.74 184.08 248.18

NP After MI And SOA / 271.89 128.46 145.33 187.95 253.28

Share (Rs.)

PROFITABILITY RATIOS

PBDIT Margin (%) 11.19 8.43 11.77 14.07 15.76

60
PBIT Margin (%) 8.78 5.27 7.46 9.40 12.25

PBT Margin (%) 8.62 5.13 7.32 9.23 12.16

Net Profit Margin (%) 6.83 4.20 5.99 7.34 8.70

NP After MI And SOA Margin 6.98 4.39 6.23 7.50 8.88

(%)

Return on Net worth/Equity 13.28 7.01 8.36 11.48 16.24

(%)

Return on Capital Employed 16.02 8.08 9.52 13.60 21.16

(%)

Return on Assets (%) 9.70 5.19 6.15 8.92 11.95

Total Debt/Equity (X) 0.02 0.01 0.01 0.00 0.00

Asset Turnover Ratio (%) 1.49 1.22 98.72 118.91 134.54

LIQUIDITY RATIOS

Current Ratio (X) 0.58 0.99 1.15 0.75 0.87

Quick Ratio (X) 0.36 0.78 0.96 0.46 0.64

Inventory Turnover Ratio (X) 11.94 12.07 23.08 23.54 25.90

Dividend Payout Ratio (NP) 22.07 35.04 41.29 42.57 31.59

(%)

Dividend Payout Ratio (CP) 16.42 20.38 24.41 26.25 22.64

(%)

Earnings Retention Ratio (%) 77.93 64.96 58.71 57.43 68.41

Cash Earnings Retention 83.58 79.62 75.59 73.75 77.36

Ratio (%)

COVERAGE RATIOS

Interest Coverage Ratios (%) 70.37 58.85 51.61 53.04 138.92

61
Interest Coverage Ratios 70.37 58.85 51.61 53.04 138.92
(Post Tax) (%)

VALUATION RATIOS

Enterprise Value (Cr.) 251,612.23 225,648.68 204,608.95 129,591.95 201,472.74

EV/Net Operating Revenue 2.14 2.55 2.91 1.71 2.34

(X)

EV/EBITDA (X) 19.12 30.28 24.69 12.17 14.85

Market Cap/Net Operating 2.13 2.58 2.94 1.71 2.34

Revenue (X)

Retention Ratios (%) 77.92 64.95 58.70 57.42 68.40

Price/BV (X) 4.05 4.13 3.95 2.62 4.28

Price/Net Operating 2.13 2.58 2.94 1.71 2.34

Revenue

Earnings Yield 0.03 0.02 0.02 0.04 0.04

9. Profit and Loss statement of Mahindra & Mahindra (From 2019 – 2023)
(Rs. in Cr.)

PROFIT & LOSS ACCOUNT MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

OF MAHINDRA AND
MAHINDRA (in Rs. Cr.)

INCOME

REVENUE FROM 119,040.38 89,353.96 72,678.98 74,304.07 103,015.23

OPERATIONS [GROSS]

Less: Excise/Service 0.00 0.00 0.00 0.00 0.00

Tax/Other Levies

REVENUE FROM 119,040.38 89,353.96 72,678.98 74,304.07 103,015.23

OPERATIONS [NET]

62
TOTAL OPERATING 121,268.55 90,170.57 74,277.78 75,381.93 104,720.68
REVENUES

Other Income 1,206.49 934.51 1,033.11 1,028.69 1,085.61

TOTAL REVENUE 122,475.04 91,105.08 75,310.89 76,410.62 105,806.29

EXPENSES

Cost Of Materials Consumed 68,477.97 46,265.48 32,797.56 32,321.80 56,120.20

Purchase Of Stock-In Trade 7,541.90 6,399.37 5,473.64 5,273.50 5,961.90

Operating And Direct 0.00 0.00 0.00 0.00 0.00

Expenses

Changes In Inventories Of -2,032.31 -861.66 135.59 826.62 -1,730.48

FGWIP And Stock In Trade

Employee Benefit Expenses 9,677.95 8,386.74 7,813.26 8,214.82 11,563.89

Finance Costs 5,829.70 5,018.05 6,102.22 6,021.15 5,021.35

Depreciation And 4,356.81 3,507.50 3,378.11 3,366.68 3,990.77

Amortization Expenses

Other Expenses 17,317.75 15,452.96 14,541.92 15,871.20 19,052.43

TOTAL EXPENSES 111,169.77 84,013.27 70,081.56 71,578.19 98,526.29

PROFIT/LOSS BEFORE 11,305.27 7,091.81 5,229.33 4,832.43 7,280.00

EXCEPTIONAL,
EXTRAORDINARY ITEMS
AND TAX

Exceptional Items 1,249.52 414.17 -1,158.26 -1,171.28 224.32

PROFIT/LOSS BEFORE 12,554.79 7,505.98 4,071.07 3,661.15 7,504.32

TAX

TAX EXPENSES-
CONTINUED OPERATIONS

63
Current Tax 2,742.04 1,868.10 2,014.89 2,314.16 2,350.46

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00

Deferred Tax -56.29 240.66 -369.08 -338.55 503.53

Other Direct Taxes 0.00 0.00 0.00 0.00 0.00

TOTAL TAX EXPENSES 2,685.75 2,108.76 1,645.81 1,975.61 2,853.99

PROFIT/LOSS AFTER TAX 9,869.04 5,397.22 2,425.26 1,685.54 4,650.33

AND BEFORE
EXTRAORDINARY ITEMS

PROFIT/LOSS FROM 9,869.04 5,397.22 2,425.26 1,685.54 4,650.33

CONTINUING OPERATIONS

PROFIT/LOSS FOR THE 9,869.04 5,397.22 235.73 -1,348.28 4,650.33

PERIOD

Minority Interest -1,092.98 -675.69 300.10 448.04 -701.39

CONSOLIDATED 10,281.50 6,577.32 1,812.49 127.04 5,315.46

PROFIT/LOSS AFTER MI
AND ASSOCIATES

10. Balance Sheet of Mahindra & Mahindra (From 2019 - 2023)

(Rs. in Cr.)

BALANCE SHEET OF MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

MAHINDRA AND
MAHINDRA (in Rs. Cr.)

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 556.82 556.06 555.15 554.28 543.96

TOTAL SHARE CAPITAL 556.82 556.06 555.15 554.28 543.96

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Reserves and Surplus 55,548.64 46,343.12 40,771.89 39,150.07 39,439.45

TOTAL RESERVES AND 55,548.64 46,343.12 40,771.89 39,150.07 39,439.45

SURPLUS

TOTAL 56,365.79 47,122.64 41,581.92 39,969.31 39,983.41

SHAREHOLDERS
FUNDS

Minority Interest 10,716.32 9,702.62 9,070.31 7,691.74 8,360.57

NON-CURRENT
LIABILITIES

Long Term Borrowings 55,027.39 48,625.06 54,906.56 52,298.05 43,526.17

Deferred Tax Liabilities 1,608.64 1,786.10 1,494.16 1,511.89 2,171.31

[Net]

Other Long Term 9,778.27 9,090.06 6,362.65 7,142.02 6,506.14

Liabilities

Long Term Provisions 1,815.95 1,497.99 1,600.88 4,384.13 4,100.64

TOTAL NON-CURRENT 68,230.25 60,999.21 64,364.25 65,336.09 56,304.26

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 33,739.62 26,042.12 4,646.59 10,217.53 10,541.01

Trade Payables 23,835.66 19,036.55 15,505.79 14,985.35 20,992.17

Other Current Liabilities 11,814.65 10,241.47 30,219.29 27,055.10 25,593.70

Short Term Provisions 1,189.48 968.19 1,074.34 1,751.54 1,616.45

TOTAL CURRENT 70,579.41 56,288.33 51,446.01 54,009.52 58,743.33

LIABILITIES

TOTAL CAPITAL AND 205,891.77 174,112.80 166,462.49 167,006.66 163,391.57

LIABILITIES

65
ASSETS

NON-CURRENT ASSETS

Tangible Assets 20,351.33 21,902.26 17,611.65 24,417.18 22,227.17

Intangible Assets 4,239.75 2,775.83 2,463.13 3,759.78 4,681.97

Capital Work-In-Progress 1,222.66 3,036.10 4,477.64 2,551.75 2,454.34

FIXED ASSETS 28,559.66 31,380.90 27,947.39 35,033.44 31,668.98

Non-Current Investments 21,006.50 19,210.55 18,745.84 12,914.78 12,160.88

Deferred Tax Assets [Net] 1,615.46 1,724.31 1,717.32 1,290.53 1,502.91

Long Term Loans And 52,772.75 38,849.40 38,525.68 45,945.23 40,515.00

Advances

Other Non-Current Assets 8,063.06 6,459.24 6,083.45 6,264.94 6,064.16

TOTAL NON-CURRENT 114,566.33 98,964.80 94,324.58 102,961.23 93,985.53

ASSETS

CURRENT ASSETS

Current Investments 14,265.92 10,849.88 10,031.82 6,295.56 6,107.22

Inventories 16,854.97 11,595.82 9,615.41 11,111.86 12,200.16

Trade Receivables 7,028.02 6,373.95 6,007.76 6,928.28 9,290.51

Cash And Cash 11,273.43 11,117.61 12,851.99 7,910.90 8,734.91

Equivalents

Short Term Loans And 34,684.81 29,242.26 29,119.55 27,963.68 28,622.06

Advances

Other Current Assets 7,218.29 5,968.48 4,511.38 3,835.15 4,451.18

TOTAL CURRENT 91,325.44 75,148.00 72,137.91 64,045.43 69,406.04

ASSETS

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 TOTAL ASSETS 205,891.77 174,112.80 166,462.49 167,006.66 163,391.57

11. Cash flow statement of Mahindra & Mahindra (From 2019 – 2023)
(Rs. in Cr.)

CASH FLOW OF MAHINDRA AND MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

MAHINDRA (in Rs. Cr.)

NET PROFIT/LOSS BEFORE 11,305.27 7,091.81 3,039.80 1,798.61 7,280.00

EXTRAORDINARY ITEMS AND
TAX

Net Cash Flow From Operating -7,074.02 9,247.55 17,908.83 - -4,347.29

Activities 1,456.93

Net Cash Used In Investing -8,547.26 - - - -7,168.17

Activities 3,225.82 18,446.76 6,894.83

Net Cash Used From Financing 15,946.11 - 406.23 6,932.75 13,193.63

Activities 5,882.60

Foreign Exchange Gains / Losses 33.86 -12.77 14.05 25.04 -5.80

Adjustments On Amalgamation -352.87 -13.36 0.00 0.00 0.00

Merger Demerger Others

NET INC/DEC IN CASH AND 5.82 113.00 -117.65 - 1,672.37

CASH EQUIVALENTS 1,393.97

Cash And Cash Equivalents Begin 3,487.59 3,374.59 3,492.24 6,139.00 4,466.63
of Year

Cash And Cash Equivalents End Of 3,493.41 3,487.59 3,374.59 4,745.03 6,139.00
Year

12. Financial Ratios of Mahindra & Mahindra (From 2019 – 2023)

KEY FINANCIAL RATIOS OF MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

MAHINDRA AND
MAHINDRA (in Rs. Cr.)

67
PER SHARE RATIOS

Basic EPS (Rs.) 92.41 59.20 16.33 -1.15 48.91

Diluted EPS (Rs.) 91.96 58.83 16.15 -1.04 48.70

Cash EPS (Rs.) 127.74 80.07 32.55 18.21 79.43

Book Value 602.37 510.96 456.20 429.94 444.37

[ExclRevalReserve]/Share
(Rs.)

Book Value 602.37 510.96 456.20 429.94 444.37

[InclRevalReserve]/Share
(Rs.)

Revenue from 1,088.94 810.80 668.99 680.00 962.58

Operations/Share (Rs.)

PBDIT/Share (Rs.) 192.99 140.43 132.48 128.28 149.75

PBIT/Share (Rs.) 153.86 108.89 102.06 97.91 113.07

PBT/Share (Rs.) 112.74 67.49 36.67 33.03 68.98

Net Profit/Share (Rs.) 88.62 48.53 2.12 -12.16 42.75

NP After MI And SOA / Share 92.32 59.14 16.32 1.15 48.86

(Rs.)

PROFITABILITY RATIOS

PBDIT Margin (%) 17.72 17.31 19.80 18.86 15.55

PBIT Margin (%) 14.12 13.42 15.25 14.39 11.74

PBT Margin (%) 10.35 8.32 5.48 4.85 7.16

Net Profit Margin (%) 8.13 5.98 0.31 -1.78 4.44

NP After MI And SOA Margin 8.47 7.29 2.44 0.16 5.07

(%)

68
Return on Net worth/Equity 18.24 13.95 4.35 0.31 13.29
(%)

Return on Capital Employed 12.66 10.27 9.85 9.60 11.75

(%)

Return on Assets (%) 4.99 3.77 1.08 0.07 3.25

Total Debt/Equity (X) 1.57 1.58 1.43 1.56 1.35

Asset Turnover Ratio (%) 0.68 0.49 44.62 45.13 64.09

LIQUIDITY RATIOS

Current Ratio (X) 1.29 1.34 1.40 1.19 1.18

Quick Ratio (X) 1.06 1.13 1.22 0.98 0.97

Inventory Turnover Ratio (X) 6.08 5.23 7.72 6.78 8.58

Dividend Payout Ratio (NP) 12.49 14.88 14.46 893.49 17.63

(%)

Dividend Payout Ratio (CP) 8.77 9.70 5.05 32.48 10.07

(%)

Earnings Retention Ratio (%) 87.51 85.12 85.54 -793.49 82.37

Cash Earnings Retention 91.23 90.30 94.95 67.52 89.93

Ratio (%)

COVERAGE RATIOS

Interest Coverage Ratios (%) 3.69 3.11 1.86 1.80 2.45

Interest Coverage Ratios 3.69 3.11 1.86 1.80 2.45

(Post Tax) (%)

VALUATION RATIOS

Enterprise Value (Cr.) 217,230.66 162,866.82 144,051.42 93,890.38 126,779.31

EV/Net Operating Revenue 1.79 1.81 1.94 1.25 1.21

69
(X)

EV/EBITDA (X) 10.11 10.43 9.79 6.60 7.78

Market Cap/Net Operating 1.06 0.99 1.19 0.42 0.70

Revenue (X)

Retention Ratios (%) 87.50 85.11 85.53 -793.49 82.36

Price/BV (X) 2.29 1.90 2.12 0.79 1.83

Price/Net Operating Revenue 1.06 0.99 1.19 0.42 0.70

Earnings Yield 0.08 0.07 0.02 0.00 0.07

70
 Chapter 7
Bibliography

71
 Bibliography

 www.moneyworks4me.com
 www.businesstoday.in
 www.ibef.org
 www.nseindia.com
 businessmodelanalyst.com
 www.moneycontrol.com

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