Mahindra & Mahindra (MM IN) India
Consumer Discretionary
M&M’s decision to pre-announce GST benefits - branding itself as a “consumer-first” OEM - may be less about patriotism and more about inventory management. Dealer checks reveal heavy discounting, even on new models like the Thar Roxx, despite expectations for strong festive demand. Wholesale dispatches have trended down since May, with August volumes (~40k) significantly lower than even last year’s levels. Discounts are valid only until Sep 21st, ahead of GST 2.0 implementation, suggesting M&M is flushing dealer stock to enable a push into Oct’s festive peak. While this strategy could boost near-term volumes, it raises margin risk and potential disruption to the EV transition.
Edition: 220
- 19 September, 2025
Big cap GEM Bank investment recommendations for 2024
Financials
Galliano's Financials Research
Victor Galliano favours four longs and one short as his conviction calls for the year ahead. 1) Bank Mandiri (Indonesia) continues to generate improving returns and has strong capital ratios, credit quality and liquidity metrics. 2) KB Financial (South Korea) is a deep value pick. 3) China Merchants Bank is a contrarian pick, which looks well positioned to confront concerns re. Chinese NPLs and also on very attractive valuations. 4) Banco do Brasil screens well re. valuations and returns; its growth potential also looks particularly appealing. 5) Victor’s key sell is Kotak Mahindra Bank (India) as it is richly valued, exposed to low prospective earnings growth and has low credit quality coverage.
Edition: 177
- 12 January, 2024
India: Affordable housing market attracts a surge of finance companies
Financials
The Pradhan Mantri Awas Yojana (PMAY) has provided opportunities for low-income individuals to own homes in urban areas through the Credit Linked Subsidy Scheme. The scheme has benefited both home borrowers and real estate developers, as the government bears a substantial subsidy burden. The affordable housing market is thriving, especially in Tier 2 and Tier 3 locations, attracting a surge of finance companies. However, there are risks associated with above-average growth and credit decisions. Attrition rates are high and employee behaviour can impact loan disbursal. The market could be at a cyclical peak.
Companies covered include Aptus Value Housing, Aavas Financiers, Home First Finance, Capri Global, Mahindra Finance, AU Small Finance Bank, IIFL, Piramal Enterprises and Five-Star Business Finance.
Edition: 163
- 23 June, 2023
Kotak Mahindra Bank (KMB IN) India
Financials
The backdoor entry of Uday Kotak into the board of directors of KMB after he steps down as the CEO at the end of the year should be recognised for what it is, namely, a method of exercising control over the bank without being saddled with executive responsibilities. This decision also reflects poorly on the board of directors for not taking CEO succession seriously for two decades. When a prominent entity in the financial system has a history of disdain towards the regulators and finds loopholes to permit the founder to exercise control, stakeholders should be concerned.
Edition: 159
- 28 April, 2023