Mahindra & Mahindra is one of the strongest company in auto sector in Indian automobile industry. They have recently launched XUV500 which is further going to strengthen their presence in the auto sector. They are also focusing upon their global position and gradually expanding their business outside India,also.
Their acquisition of korean auto mobile which had happened sometime back will also help them in improving their sales. In last some months, stock markets in India have been beaten badly and auto sector is not an exception. It has also got its share of beating and shares have fallen across companies.
There were expectations with festive season but that has also failed to revive anything and auto sales had dropped 23.8 per cent in the month of october. This was the fourth consecutive month for which sales have dropped but what was more significant that this drop was the highest since december 2000.
The industry body has also cut down the sales estimation for the current financial year. But amid all of these negative news, Mahindra & Mahindra stands as a strong contender for the long term growth story. Company is increasing its sales outside country which will help diversifying its market and therefore reducing risk.
High interest rates are the biggest enemy of the auto sector in the current market scenario. Consumers are shying away from buying new cars as interest rates are high on car loans and interest rates are also contributing to high input cost for the manufacturers. So, there is double loss for the automobile companies.
But things are expected to stabilize in the long term and consumers are expected to return to the showrooms. Indian middle class growth story is still intact and as they are the biggest consumer for the sector, long term growth goals are still achievable for the auto sector companies.
And Mahindra & Mahindra group is well positioned to capitalize this. They have recently launched quite a few good models and their future line up is also attractive, so company’s stock is expected to perform well in the medium to long term. M&M stock is currently trading at 841.40 at NSE and its 52 week high is 877.30. So, stock have not fallen much from its week high and sustained this bear phase quite well in comparison of other stocks.
About akhilendra
that as per new CBDT rules,a salaried emlopyee whose total income is less than rs.5 lakh, need not submit his IT return. But then,1. How will the tax payable be determined ?2. If it is determined on the basis of TDS , won’t the tax amount be lesser as the TDS rates are less ?
TDS is the amount of tax payable by you deducted directly from your salary. If you are not liable to pay tax as per your income, then TDS won’t be deducted and if your income makes you eligible to pay tax, then you need to pay.