Analysis on 3 Major Automobile Companies

7/29/2019 Analysis on 3 Major Automobile Companies

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Maruti Suzuki India Limited

Brief History

Maruti Suzuki India Limited, usually referred to as Maruti, is a subsidiary company

of Suzuki Motor Corporation (Japanese automaker). Maruti Suzuki India is the market leaderin India, and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki

India Limited. It was the first company in India to mass-produce and sell more than a million

cars. It is mostly credited for bringing in an automobile revolution to India.

Maruti Udyog Limited (MUL) was established in February 1981, the actual production began

in 1983 with the Maruti 800, which was the only modern car available in India at that time.

Main Products

Entry Level Hatchback Sedans 'C' Segment Multi-Purpose

Vehicle

Sports Utility

Vehicle800 Ritz DZire Maruti Eeco Ertiga Grand Vitara

Alto A-Star SX4

Alto 800 Swift

Wagon-R

Estillo

Key Members

Post Name

Chairman Mr. R. C. Bhargava

Managing Director and CEO Mr. Shinzo Nakanishi

Director Mr. Amal Ganguli

Director Mr. D. S. Brar

Director and Managing Executive Office (Engineering) Mr. Keiichi Asai

Director Mr. Osamu Suzuki

Director Mr. Kinji Saito

Director Ms. Pallavi Shroff

Director Mr. Kenichi Ayukawa

Director and Managing Executive Officer (Production) Mr. Tsuneo Ohashi

Director and Managing Executive Officer (Supply Chain) Mr. Kazuhiko Ayabe


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Awards

The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in

the seventh position in 2011 and the sixth position in 2012 among the brands researched in

India.

Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed CarCompany in their Reputation Benchmark Study conducted for the Auto (Cars) Sector which

launched in April 2012.

Mahindra & Mahindra

Brief History

Mahindra & Mahindra was started as a steel trading company in the year 1945. Mahindra &

Mahindra stepped in automotive manufacturing in 1947 (brought the iconic Willys Jeep on

Indian roads). They have diversified into many new sectors in order meet the customers

needs.

Mahindra & Mahindra operate in 18 major industries which form every modern economys

base: aerospace, aftermarket, agribusiness, automotive, components, construction equipment,

consulting services, defence, energy, farm equipment, finance and insurance, industrial

equipment, information technology, leisure and hospitality, logistics, real estate, retail,

and two wheelers.

Main Products

Commercial Vehicles Personal Vehicles

Alfa Bolero

Gio REVA Electric Cars

Mahindra Navistar Trucks Scorpio

Bolero Maxi Truck Thar

Genio Verito

Loadking Xylo

Maxximo Actyon

Tourister Buses Actyon Sports

Chairman W

Korando

Kyron

RextonRodius


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XUV 500

Quanto

Key Members

Post Name

Chairman EmeritusMahindra & Mahindra Keshub Mahindra

Chairman & Managing DirectorMahindra & Mahindra Anand Mahindra

Executive Director & Group CFO Bharat Doshi

PresidentAutomotive & Farm Equipment Sectors Pawan Goenka

Chief Executive International Operations, Automotive & Farm

Equipment Divisions

Ruzbeh Irani

Chief ExecutiveAutomotive Division Pravin Shah

Chief ExecutiveTechnology, Product Development and Sourcing,

Automotive & Farm Equipment Sectors

Rajan Wadhera

Awards

Mahindra's Auto & Two wheeler sectors receive top awards from automotive media. Dr. Pawan Goenka, President, Automotive Sector, Mahindra & Mahindra Ltd. accepts

the CNBC TV18 Overdrive Best UV of the year award for the XYLO.

Mr. Anoop Mathur, President, 2 Wheeler Sector, Mahindra & Mahindra Ltd. accepts theNDTV Profit Car & Bike Scooter of the Year Award for the Duro

And many more.

Tata Motors

Brief History

Tata Motors was found in 1945 as a locomotives manufacturer, the company manufactured

their first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which broke

in 1969. In 1991, Tata Motors entered the passenger vehicle market with the launch of the

Tata Sierra. In 1998, Tata Motors launched the first fully indigenous Indian passenger car, the

Indica. In 2004, Tata Motors acquired the South Korean truck manufacturer Daewoo

Commercial Vehicles Company. The British premium car maker Jaguar Land Rover was

acquired in 2008.


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Tata Motors is an Indian multinational automotive manufacturing company. It is a subsidiary

of the Tata Group. Tata Motors products include passenger cars, trucks, vans, coaches, buses

and military vehicles.

Main Products

Commercial vehicles Passenger vehicles Land Rover Jaguar

Tata Ace Tata Sumo Land Rover Freelander 2 XF

Tata Ace Zip Tata Sumo Grande Land Rover Range Rover Evoque XJ L

Tata Super Ace Tata Safari Land Rover Discovery 4 XK

Tata TL/ Telcoline/

207 DI Pickup Truck

Tata Indica Land Rover Range Rover Sport

Tata 407 Ex and Ex2 Tata Vista Land Rover Range Rover

Tata 709 Ex Tata Indigo

Tata 809 Ex and Ex2 Tata Manza

Tata 909 Ex and Ex2 Tata WingerTata 1109 Tatar Magic

Tata 1512 Tata Nano

Tata 1612/1616 Tata Xenon XT

Tata 1618 Tata Aria

Tata 1623 Tata Venture

Tata 1518C Tata Iris

Tata 1613/1615

Tata 2515/2516

Tata Starbus

Tata Divo

Tata CityRide

Tata 3015

Tata 3118

Tata 3516

Tata 4018

Tata 4923

Tata Novus

Tata Prima

Tata Prima LXTata Ultra


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Key Members

Post Name

Managing Director Mr Karl Slym

Executive Director (Commercial Vehicles) Mr R Pisharody

Executive Director (Quality, Vendor Development & Strategic

Sourcing)Mr S B Borwankar

Chief Financial Officer Mr C Ramakrishnan

Head, Advanced and Product Engineering Dr T Leverton

President (PCBU) Mr Ranjit Yadav

Senior Vice President (Human Resources) Mr Prabir Jha

Senior Vice President (Corp Finance - Accts & Taxation) Mr P Y Gurav

Senior Vice President (Latin America Operations) Mr S Krishnan

Vice President (Corp Finance and Business Planning) Mr A A Gajendragadkar

Head Engineering (Comm. Vehicles - ERC) Dr A K Jindal

Vice President - Sales (CVBU) Mr Anil Kapur

Vice President (Govt. Affairs & Collaboration) Mr A S Puri

Chief (Strategic Sourcing) Mr B B Parekh

Head (Small Car Project) Mr Girish Wagh

Company Secretary Mr H K Sethna

Project Director (Joint Projects) Mr Karl-Heinz Servos

Vice President (Internal Audit) Mr N Pinge

HeadManufacturing Operations (CVBU) Mr P Chobe

Vice President (Legal) Mr R Bagga

Vice President (Commercial - CVBU) Mr R Ramakrishnan

Vice President (Engg. Systems, ERC) Mr S Ravishankar

Head (Car Plant - PCBU) Mr Vikram Sinha

Awards

Tata Motors won the award for the Best Learning Organisations of Asia (2011-12) Tata Motors Most reputed company: Nielsen Report Tata Motors wins the Golden Peacock Award for Excellence in Corporate Governance Tata Motors Lucknow plant wins Greentech Environment SILVER AWARD 2011 And many more.


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Five key ratios which reflect the financial health of the company

1. Current Ratio

Company Mar 10 Mar 11 Mar 12

Maruti Suzuki India 0.91 1.47 1.02

Mahindra & Mahindra 1.11 0.86 0.95

Tata Motors 0.44 0.53 0.51

Current ratio measures the capabilityof the company to pay short term loans. As the current

ratio raises, paying the short term debts becomes easier. If the current ratio is greater than 1.0then the company has lesser debts to clear and if the current ratio is lower than 1.0 then the

company has more debts to clear.

From the chart (Current Ratio) in Appendix-I, in the financial year 2009-2010, Mahindra &

Mahindra had the highest current ratio (1.11), followed by Maruti Suzuki India (0.91) and

Tata Motors (0.44). In the financial year 2010-2011,Maruti Suzuki India had the highest

current ratio (1.47), followed by Mahindra & Mahindra (0.86) and Tata Motors (0.53). In the

financial year 2011-2012,Maruti Suzuki India had the highest current ratio (1.02), followed

by Mahindra & Mahindra (0.95) and Tata Motors (0.51). From this we can see that Maruti

Suzuki India is able to clear their short term debts with ease, whereas Mahindra & Mahindra

face slight difficulties and Tata Motors is having a major difficulty in clearing their shortterm debts.

2. Debt Equity Ratio




Tata Motors 1.12 0.80 0.57

Debt Equity Ratio shows the fraction of debt and equity to finance the assets of the company.

If the company uses higher proportion of debt than equity then the company can hold higher

profits for the shareholders of the company. Having higher debt than equity, the company is

under the risk of separating the earnings between the same numbers of shareholders. Holding

back debt benefits companies with tax shield as there is no tax on debt, but the interest

amount should be paid on time.

From the chart (Debt Equity ratio) in Appendix-I, in the financial year 2009-2010, Maruti

Suzuki India has the lowest debt to equity ratio (0.07), followed by Mahindra & Mahindra

(0.37) and Tata Motors (1.12). In the financial year 2010-2011, again Maruti Suzuki India has

the lowest debt to equity ratio (0.02), followed by Mahindra & Mahindra (0.23) and Tata

Motors (0.80). In the financial year 2011-2012, Maruti Suzuki India has the lowest debt toequity ratio (0.07), followed by Mahindra & Mahindra (0.26) and Tata Motors (0.57). Maruti


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Suzuki India has consistently maintained a low debt to equity ratio in 3 financial years.

Mahindra & Mahindra is having a fluctuating debt to equity ratio. Tata Motors has shown a

decline in their debt to equity ratio, which is a good sign for potential shareholders.

3. Inventory Turnover Ratio




Tata Motors 13.50 13.86 13.37

Inventory turnover ratio shows the number of times a companys stock is sold and replaced over a

period. A low turnover ratio mean says the company is experiencing poor sales and there isabundant

stock. A high turnover shows strong sales or inefficientpurchases of stock. If the company keeps a

very high volume of stock, it is not advisable as it will block potential investment in other sectors.

From the chart (Inventory turnover Ratio) in Appendix-I, in the financial year 2009-2010, Maruti

Suzuki India has the highest Inventory turnover ratio (30.47), followed by Mahindra & Mahindra

(17.91) and Tata Motors (13.50). In the financial year 2010-2011, again Maruti Suzuki India has the

highest Inventory turnover ratio (33.33), followed by Mahindra & Mahindra (15.64) and Tata Motors

(13.86). In the financial year 2011-2012, Maruti Suzuki India has the highest Inventory turnover ratio

(22.80), followed by Mahindra & Mahindra (14.99) and Tata Motors (13.37). From this we can see

that Maruti Suzuki India has maintained a high inventory ratio throughout 3 financial years and sold

many products. Maruti Suzuki India also has the highest market share in Indian Automobile sector.

4.

Debtors Turnover Ratio




Tata Motors 17.92 19.20 20.42

Debtor turnover ratio shows the number of times the sundry debtors are converted into a form of

cash. It shows the how many times the debts are cleared in a year. It measures of receivables from

credit sale. Higher the debtor turnover ratio, the more efficient is the management. Lower the debtor

turnover ratio, the lesser efficient is the management.From the chart (Debtors Turnover Ratio) in Appendix-I, in the financial year 2009-2010,

Maruti Suzuki India has the highest Debtors turnover ratio (33.92), followed by Tata Motors

(17.92) and Mahindra & Mahindra (16.09). In the financial year 2010-2011, Maruti Suzuki

India has the highest Debtors turnover ratio (42.93), followed by Tata Motors (19.20) and

Mahindra & Mahindra (17.97). In the financial year 2011-2012, Maruti Suzuki India has the

highest Debtors turnover ratio (33.92), followed by Tata Motors (17.92) and Mahindra &

Mahindra (16.09). From this we can say that Maruti Suzuki India has the most efficient

management, compared to Mahindra & Mahindra and Tata Motors.


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5. Net Profit Margin Ratio


Maruti Suzuki India 8.34 6.13 4.53Mahindra & Mahindra 11.08 11.14 8.92

Tata Motors 6.26 3.74 2.26

The Net Profit Margin Ratio shows the relationship between net profits (after tax) and net

sales. If the net profit margin ratio higher, then better is the profitability of the company.

Lower the net profit margin, lower is profitability of the company.

From the chart (Net Profit Margin Ratio) in Appendix-I, in the financial year 2009-2010,

Mahindra & Mahindra has the highest Net profit margin ratio (11.08), followed by Maruti

Suzuki India (8.34) and Tata Motors (6.26). In the financial year 2010-2011, Mahindra &Mahindra has the highest Net profit margin ratio (11.14), followed by Maruti Suzuki India

(6.13) and Tata Motors (3.74). In the financial year 2011-2012, Mahindra & Mahindra has

the highest Net profit margin ratio (8.92), followed by Maruti Suzuki India (4.53) and Tata

Motors (2.26). We can see that Mahindra & Mahindra have the highest net profit margin

ratio, compared to Maruti Suzuki India and Tata Motors.

Study ofCompanys Dividend Policy

The Dividend Payout Ratio is dividend, which is paid to stockholders, comparative to the netincome of the company. The left amount (after giving dividend) isretained by the company,

for growth.

Formula:

Maruti Suzuki India

In the Financial year 2009-2010, the Dividend per Share was 6 and the Dividend Payout

Ratio was 0.007. In the Financial year 2010-2011, the Dividend per Share was 7.5 and the

Dividend Payout Ratio was 0.095.In the Financial year 2011-2012, the Dividend per Share

was 7.5 and the Dividend Payout Ratio was 0.133. Maruti Suzuki Indias Dividend Per Sharehad a rise of 1.5 before it became constant at 7.5 for two financial years and the Earnings Per

Mar-12 Mar-11 Mar-10

Dividend Per Share (Rs) 7.5 7.5 6

Earnings Per Share (Rs) 56.6 79.21 86.45

Dividend Payout Ratio 0.133 0.095 0.07


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Share had declined from 86.45 to 56.6. Hence, Dividend Payout Ratio had increased from

0.07 to 0.133.Charts are shown in Appendix-II.

Mahindra & Mahindra

In the Financial year 2009-2010, the Dividend per Share was 9.5 and the Dividend Payout

Ratio was 0.2575. In the Financial year 2010-2011, the Dividend per Share was 11.5 and the

Dividend Payout Ratio was 0.2537. In the Financial year 2011-2012, the Dividend per Share

was 12.5 and the Dividend Payout Ratio was 0.2557. Mahindra & Mahindras dividend pershare and earnings per share has increased but the Dividend Payout Ratio was affected with

minimum change. Charts are shown in Appendix-II.

Tata Motors

In the Financial year 2009-2010, the Dividend per Share was 15 and the Dividend Payout

Ratio was 0.382. In the Financial year 2010-2011, the Dividend per Share was 20 and the

Dividend Payout Ratio was 0.701. In the Financial year 2011-2012, the Dividend Per Share

was 4 and the Dividend Payout Ratio was 1.023. Tata Motors Dividend Per Share had a rise

from 15 to 20 and then declined to 4, but the Earnings Per Share had declined with by a large

difference. The Dividend Payout Ratio has increased from 0.382 to 1.023.Charts are shown in

Appendix-II.


Dividend Per Share (Rs) 12.5 11.5 9.5




Dividend Per Share (Rs) 4 20 15




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Study of Companys Cash Flow

The cash flow statement finds the cash that is flowing to and from the company. If a company

is steadily making more cash than being used, the company can increase their dividends, buy

stock, clear debts or acquire other companies.

Maruti Suzuki India (In Crores)

Items Mar-12 Mar-11 Mar-10

Net Profit Before Tax 2146.2 3108.8 3592.5

Net Cash From Operating Activities 2229.4 3050.3 2887.4

Net Cash Used In/From Investing Activities -2918.3 73.4 -4783.3

Net Cash Used In/From Financing Activities 616.5 -713.4 55.1

Net Decrease/Increase In Cash and Cash Equivalents -72.4 2410.3 -1840.8

Opening Cash & Cash Equivalents 2508.5 98.2 1939

Closing Cash & Cash Equivalents 2436.1 2508.5 98.2

In the financial year of 2009-2010, Opening Cash was 1939Crores and the Net Decrease in

Cash was 1840.8Crores. In the financial year of 2010-2011, Opening Cash was 98.2Crores

and the Net Increase in Cash was 2410.3Crores. In the financial year of 2011-2012, Opening

Cash was 2508.5Crores and the Net Decrease in Cash was 72.4Crores. Maruti Suzuki India

also did not experience Negative Opening Balance, but have seen a major decrease in Net

Cash Flow of 1840.8Crores which was recovered in the next year by a major increase in the

Net Cash Flow of 2410.3Crores.Charts are shown in Appendix-III.

Mahindra & Mahindra (In Crores)


Net Profit Before Tax 3497.62 3402.13 2756


Net Cash Used In/From Investing Activities -1936.54 -3734.99 -1345.44

Net Cash Used In/From Financing Activities -306.15 -383.72 -783.87

Net Decrease/Increase In Cash and Cash Equivalents 492.26 -1138.96 207.18Opening Cash & Cash Equivalents 695.97 1753.13 1543.63


In the financial year of 2009-2010, Opening Cash was 1543.63Crores and the Net Increase in

Cash was 207.18Crores. In the financial year of 2010-2011, Opening Cash was

1753.13Crores and the Net Decrease in Cash was 1138.96Crores.In the financial year of

2011-2012, Opening Cash was 695.97Crores and the Net Increase in Cash was 492.26Crores.

Mahindra & Mahindra have not experienced Negative Opening Balance and have managed

their investments during last three financial years. Charts are shown in Appendix-III.


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Tata Motors (In Crores)


Net Profit Before Tax 1242.23 1811.82 2240.08


Net Cash Used In/From Investing Activities 144.72 -2521.88 -11848.3

Net Cash Used In/From Financing Activities -4235.59 1648.42 5348.49

Net Decrease/Increase In Cash and Cash Equivalents -437.28 632.1 86.23

Opening Cash & Cash Equivalents 1352.14 720.04 630.04


In the financial year of 2009-2010, Opening Cash was 630.04 Crores and the Net Increase in

Cash was 86.23Crores. In the financial year of 2010-2011, Opening Cash was 720.04Crores

and the Net Increase in Cash was 632.1Crores. In the financial year of 2011-2012, Opening

Cash was 1352.14Crores and the Net Decrease in Cash was 437.28Crores. We can see thatTata Motors did not have a decline in their Net Cash until the financial year of 2011-2012.

Tata Motors used 4235.59Crores in Financing Activities, which is the reason for Net

Decrease in Cash of 437.28Crores.Charts are shown in Appendix-III.

Study of Capital Structure of the companies

Maruti Suzuki India (In Crores)

Particular Mar-12 Mar-11 Mar-10

Share Capital 144.5 144.5 144.5

Reserves & Surplus 15,042.90 13,723.00 11,690.60

Net Worth 15,187.40 13,867.50 11,835.10

Secured Loans 0 31.2 26.5

Unsecured Loans 1,078.30 278.1 794.9

Total Liabilities 16,265.70 14,176.80 12,656.50

In the financial year 2009-2010, Total Equity (Net Worth) was 11835.1 Crores and the Total

Liabilities were 12656.5Crores. In the financial year 2010-2011, Total Equity (Net Worth)

was 13867.5 Crores and the Total Liabilities were 14176.8Crores. In the financial year 2011-

2012, Total Equity (Net Worth) was 15187.4 Crores and the Total Liabilities were

16265.7Crores. From this we can see that both the Total Equity (Net Worth) and the Total

Liabilities has increased at almost the same pace. Charts are shown in Appendix-IV.


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Mahindra & Mahindra (In Crores)


Share Capital 294.52 327.59 290.96


Net Worth 12,104.69 10,313.39 7,830.23

Secured Loans 400.18 407.23 602.45

Unsecured Loans 2,774.04 1,998.06 2,277.70




was 10313.39 Crores and the Total Liabilities were 12718.68 Crores. In the financial year

2011-2012, Total Equity (Net Worth) was 12104.69 Crores and the Total Liabilities were

15278.91Crores. From this we can see that both the Total Equity (Net Worth) and the TotalLiabilities has increased, but the Total Liabilities increased at a slightly faster rate than Total

Equity (Net Worth). Charts are shown in Appendix-IV.

Tata Motors (In Crores)


Share Capital 634.75 637.71 570.6


Net Worth 19,367.66 20,013.30 14,803.78

Secured Loans 6,915.77 7,766.05 7,742.60Unsecured Loans 4,095.86 8,132.70 8,883.31




was 20013.3 Crores and the Total Liabilities were 35912.05 Crores. In the financial year

2011-2012, Total Equity (Net Worth) was 19367.66 Crores and the Total Liabilities were

30379.29Crores. From this we can see that both the Total Equity (Net Worth) and the Total

Liabilities have increased, but the gap between Total Liabilities and Total Equity (Net Worth)

is too large. Charts are shown in Appendix-IV.


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Non-Financial Indicators

1. Nov 09, 2011October car sales suffer biggest fall in a decade - Car sales in India fell23.8% in October, the biggest monthly percentage decline since December 2000, anindustry body said on Wednesday.

Mahindra & Mahindra had a drop in their share price (Closing price) from Rs.813 (9th

November, 2011) to Rs.709.06 (22nd November, 2011).Maruti Suzuki India had a drop in

their share price (Closing price) from Rs.1080.15 (9th November, 2011) to Rs.959.85 (22nd

November, 2011).Tata Motors had a drop in their share price (Closing price) from Rs.184.7

(9th November, 2011) to Rs.161.45 (21st November, 2011). We can see that Maruti Suzuki

India and Mahindra & Mahindra were affected the most by this news of major drop in sales

in October and Tata Motors was least affected amongst the three companies. The fall in salestook place due to increase in the interest rate. The customers who purchase cars by taking a

loan from the financial institutes, found the landing cost of the car to be increased and

decided to wait for the interest rates to cool down.

2. Jul 22, 2011Political rivalry makes Nano project at Singur suffer: TML - TataMotors today claimed before the Calcutta High Court that its Nano project suffered due to

rivalry between two political parties in West Bengal and denied that it had abandoned

Singur.

Tata Motors had a drop in their share price (Closing price) from Rs.199.37 (22nd July, 2011)

to Rs.139.84 (26th August, 2011). After Mamta Banerjee (Chief Minister, West Bengal) cased

a file against Tata Motors in Calcutta High Court, the share price of Tata Motors experienced

a slip.

3. Mar 15, 2011Mahindra & Mahindra completes acquisition of majority stake inSsangYong Motor Company - Mahindra & Mahindra completes acquisition of majoritystake in SsangYong Motor Company.

Mahindra & Mahindra had an incline in their share price (Closing price) from Rs.644.35 (15th

March, 2011) to Rs.710.05 (30th March, 2011). The news of SsangYong being acquired by

Mahindra & Mahindra was in the market since February, 2011. On 15th March, 2011

Mahindra & Mahindra had completed the acquisition of 70% stake in SsangYong which

boosted the value of Mahindra & Mahindra.


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Reflection

This assignment helped me in understanding the concepts of Corporate Finance with personal

experience. I have learned to realize the financial health of the company with Ratios. I have

understood the importance of non-financial news, which can bring a major affect on the

companys share price in different ways. I can study the capital structure and the cash flow ofthe company and find the current situation of the company. From this assignment I have

understood the value of dividend policy, which shows how the company treats their

shareholders.

There were minimum problems faced during the assignment. The main problem faced was to

trace the non-financial indicators, as there were lot of news in market which could bring a

change in the companys share price. Yet, I had overcome that problem by analyzing the

news which had brought a major change in the share price of the company.

I have a few ideas on how differently I would like to do this assignment. Such as, in the

questions where we had to study the ratios, cash flows, dividends and capital structure to find

the negatives and positive. I would prefer finding the reason for the change in the same.


15/22

Bibliography

History of Maruti Suzuki. (n.d.). Retrieved October 28, 2012, fromhttp://www.marutisuzuki.com/about-us.aspx

Key Financial Ratios - Mahindra and Mahindra . (n.d.). Retrieved November 1, 2012,from http://www.moneycontrol.com/financials/mahindramahindra/ratios/MM#MM

Key Financial Ratios - Maruti Suzuki India . (n.d.). Retrieved November 1, 2012, fromhttp://www.moneycontrol.com/financials/marutisuzukiindia/ratios/MS24#MS24

Key Financial Ratios - Tata Motors . (n.d.). Retrieved November 1, 2012, fromhttp://www.moneycontrol.com/financials/tatamotors/ratios/TM03#TM03

Mahindra & Mahindra completes acquisition of majority stake in SsangYong MotorCompany. (n.d.). Retrieved November 2, 2012, from

http://www.moneycontrol.com/news/business/mahindramahindra-completes-acquisitionmajority-stakessangyong-motor-company_529627.html

Mahindra Automotive. (n.d.). Retrieved October 28, 2012, fromhttp://www.mahindra.com/What-We-do/Automotive/Products

Mahindra Rise. (n.d.). Retrieved October 28, 2012, from http://www.mahindra.com/ October car sales suffer biggest fall in a decade. (n.d.). Retrieved November 2, 2012,

from http://www.moneycontrol.com/news/business/october-car-sales-suffer-biggest-falla-

decade_613960.html

Our Cars in India. (n.d.). Retrieved October 28, 2012, fromhttp://www.marutisuzuki.com/showroom.aspx

Our Leadership. (n.d.). Retrieved October 28, 2012, fromhttp://www.mahindra.com/Who-We-Are/Our-Leadership

Political rivalry makes Nano project at Singur suffer: TML. (n.d.). Retrieved November2, 2012, from http://www.moneycontrol.com/news/business/political-rivalry-makes-nano-

project-at-singur-suffer-tml_567780.html

Press releases Maruti Suzuki. (n.d.). Retrieved October 28, 2012, fromhttp://www.marutisuzuki.com/press-releases.aspx

Tata Motors: Know Us: Company Profile . (n.d.). Retrieved October 28, 2012, fromhttp://tatamotors.com/know-us/company-profile.php

Tata Motors: Media: Awards. (n.d.). Retrieved October 28, 2012, fromhttp://tatamotors.com/media/awards.php


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APPENDIX-I

00.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Mar 10 Mar 11 Mar 12

Current Ratio

Maruti Suzuki India

Mahindra and Mahindra

Tata Motors

0

0.2

0.4

0.6

0.8

1

1.2


Debt Equity Ratio

Maruti Suzuki India


Tata Motors

0

5

10

15

20

25

30

35


Inventory Turnover Ratio

Maruti Suzuki India


Tata Motors


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0

5

10

15

20

25

30

35

40

45

50


Debtors Turnover Ratio

Maruti Suzuki India


Tata Motors

0

2

4

6

8

10

12


Net Profit Margin Ratio

Maruti Suzuki India


Tata Motors


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APPENDIX-II

Mahindra & Mahindra Maruti Suzuki India

Tata Motors

0.251

0.252

0.253

0.254

0.255

0.256

0.257

0.258

Dividend Payout

Ratio

Mar-12

Mar-11

Mar-10

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

Dividend Payout

Ratio

Mar-12

Mar-11

Mar-10

0

0.2

0.4

0.6

0.8

1

1.2

Dividend Payout

Ratio

Mar-12

Mar-11

Mar-10


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APPENDIX-III

Mahindra & Mahindra Maruti Suzuki India

Tata Motors

-1400

-1200

-1000

-800

-600

-400

-200

0

200

400

600

Net Decrease/Increase

In Cash and Cash

Equivalents

Mar-12

Mar-11

Mar-10

-2000

-1500

-1000

-500

0

500

1000

1500

2000

2500


In Cash and Cash

Equivalents

Mar-12

Mar-11

Mar-10

-600

-400

-200

0

200

400

600

800


In Cash and Cash

Equivalents

Mar-12

Mar-11

Mar-10


20/22

APPENDIX-IV

Mahindra & Mahindra

Maruti Suzuki India

Tata Motors

0.002,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

18,000.00

Net Worth TOTAL LIABILITIES

Capital Structure

Mar-12

Mar-11

Mar-10

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

18,000.00


Capital Structure

Mar-12

Mar-11

Mar-10

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00


Capital Structure

Mar-12

Mar-11

Mar-10


21/22

APPENDIX-V

Maruti Suzuki India (9th November to 22nd November)

Mahindra & Mahindra (9th November to 22nd November)

Tata Motors (9th November to 22nd November)


22/22

Tata Motors (22nd July to 26thAugust)

Mahindra & Mahindra (15th March to 30th March)

Analysis on 3 Major Automobile Companies

Documents

Transcript of Analysis on 3 Major Automobile Companies