Académique Documents
Professionnel Documents
Culture Documents
Quantitative technique
Analysis of share price of M&M Ltd and Sensex
points (closing values)
12/25/2008
Mahindra and Mahindra Ltd
JITENDER SINGH
Acknowledgement
Jitender Singh
R346A13
3020070064
2 | Page
INDEX
S.NO. PARTICULARS Page. No.
1. History 4
2. Company’s profile 5
3. Company’s Business 6-7
4. Company’s Product 8
6. Company’s Group 9
7. Company’s Quantitative Analysis 10-17
Biblography
3 | Page
Introduction
HISTORY
Mahindra & Mahindra Limited is part of the US $6.7 billion Mahindra
Group, an automotive, farm equipment, financial services, trade and
logistics, automotive components, after-market, IT and infrastructure
conglomerate. The company was set up in 1945 as Mahindra &
Mohammed. Later, after the partition of India, Ghulam Mohammad
returned to Pakistan and became that nation's first finance minister.
Hence, the name was changed from Mahindra & Mohammed to
Mahindra & Mahindra in 1948.
Initially set up to manufacture general-purpose utility vehicles, Mahindra
& Mahindra (M&M) was first known for assembly of the iconic Jeep in
India. The company later branched out into manufacture of light
commercial vehicles (LCVs) and agricultural tractors, rapidly growing
from being a manufacturer of army vehicles and tractors to an
automobile major with a growing global market. At present, M&M is the
leader in the utility vehicle (UV) segment in India with its flagship UV, the
Scorpio (known as the Mahindra Goa in Italy).
M&M is India's largest SUV maker.
Type Conglomerate
Founded 1945
Industry Automotive
Website www.mahindra.com/
BUSINESS
Mahindra & Mahindra grew from being a maker of army vehicles to a
major automobile and tractor manufacturer. It has acquired plants in
5 | Page
China and the United Kingdom, and has three assembly plants in the
USA. M&M has partnerships with international companies like Renault
SA, France and International Truck and Engine Corporation, USA.
M&M has a global presence and its products are exported to several
countries. Its global subsidiaries include Mahindra Europe Srl. based in
Italy. Mahindra USA Inc., Mahindra South Africa and Mahindra (China)
Tractor Co. Ltd.
M&M is the third largest tractor company in the world. It is also the
largest manufacturer of tractors in India with sustained market
leadership of around 25 years. It designs, develops, manufactures and
markets tractors as well as farm implements. Mahindra (China) Tractor
Co. Ltd. manufactures tractors for the growing Chinese market and is a
hub for tractor exports to the USA and other western nations. M&M has
a 100% subsidiary, Mahindra USA, which assembles products for the
American market.
M&M made its entry into the passenger car segment with the Logan in
April 2007 under the Mahindra Renault joint venture. M&M will make its
maiden entry into the heavy trucks segment with Mahindra International,
the joint venture with International Truck, USA.
M&M's automotive division makes a wide range of vehicles including
MUVs, LCVs and three wheelers. It offers over 20 models including new
generation multi-utility vehicles like the Scorpio and the Bolero.
At the recent Delhi Auto Show, Mahindra executives said the company
is pursuing an aggressive product expansion program that will see the
launch of several new platforms and vehicles over the next three years,
including an entry-level SUV designed to seat five passengers and
powered by a small turbo diesel engine. Later in 2008, it will unveil the
all-new Ingenio SUV, which will be joined in 2009 by a pickup derivative.
In early 2008, Mahindra commenced its first overseas CKD operations
with the launch of the Mahindra Scorpio in Egypt, in partnership with the
Bavarian Auto Group. This was soon followed by assembly facilities in
Brazil. Vehicles assembled at the Plant in Bramont, Manaus, include
Scorpio Pik Ups in single and double cab pick-up body styles as well as
sports utility.
6 | Page
The US based Reputation Institute recently ranked Mahindra among the
top 10 Indian companies in its 'Global 200: The World's Best Corporate
Reputations' list.
Mahindra is also gearing up to sell the Scorpio SUV and pickup next
year in North America, through an independent distributor, Global
Vehicles USA, based in Alpharetta, Georgia.
AWARDS
1. Bombay Chamber Good Corporate Citizen Award for 2006-07
2. Deming Application Prize
3. Japan Quality Medal in 2007
4. Business world FICCI-SEDF Corporate Social responsibility Award
2007
Products
MODELS
• Mahindra Thar
• Mahindra Bolero
○ Mahindra Bolero Camper
7 | Page
○ Mahindra Bolero Inspira
○ Mahindra Bolero Stinger Concept
• Mahindra Scorpio
○ Mahindra Scorpio Getaway
○ Mahindra Scorpio First
• Mahindra Legend
• Mahindra-Renault Logan (in cooperation with Renault)
• Mahindra Axe
• Mahindra Major
○ Mahindra Souvenir Concept
• Mahindra Commander
• Mahindra Cab Chassis
8 | Page
MAHINDRA GROUP
Core Business Activities
• Automotive
• Farm Equipment
• Systech
• Trade & Financial Service
• Information Technology
• Infrastructure Development
Community Initiatives
• Mahindra United World College of India
• Mahindra United, a football club based in Mumbai, Maharashtra
• Mahindra Foundation
• K. C. Mahindra Education Trust: Nanhi Kale
9 | Page
Quantitative Technique Analysis
Interpretation:
Mean: It is used to find a value which can represent the whole set of
data.
Mean = (X1 + X2 + X3 + …………………………+ Xn)/n
Mean of share price of M&M Ltdis 593.16 which show that the average
price of shares of the company for last one year is RS 593.16 It helps us
to compare the average value of the whole data with next year data.
M&M Ltd Sensex
Median of M&M Ltd. shows that half of the share prices of company is
below 592.9 and half are above. Similarly Sensex value shows that in
last one year the middle price of Sensex is 15422.31.
Value 658.65 shows that for M&M Ltd the most number of repeated
share prices is Rs 658.65.
Quartile: Returns the quartile of a data set. Quartiles often are used
in sales and survey data to divide data into groups. For example, we
can use QUARTILE to find the top 25 percent of incomes in a
population.
12 | P a g e
Quartile deviation M&M Ltd Sensex
Lower quartile (Q1) 533.77 13742.03
Upper quartile (Q3) 667.77 17363.27
Standard Deviation:
The standard deviation is a measure of how widely values are dispersed
from the average value (the mean).
The high Standard deviation of the company and Sensex shows that
during last one year the fluctuation of share prices are very high and the
stocks volatility is also very high. This shows that in current situation the
shares of M&M Ltd are less trust worthy.
13 | P a g e
Variance: =
Where ‘x’ is the sample mean AVERAGE
(number1, number2…) and n is the sample
size.
Covariance:
The covariance is:
Where x and y are the sample means and n is the sample size.
Covariance 370732.7267
It measures how the share price of M&M Ltd and the points of Sensex
vary simultaneously. The value of covariance is very high which means
the share price of M&M Ltd and Sensex deviate simultaneously.
14 | P a g e
Skewnees: Skewnees characterizes the degree of asymmetry of a
distribution around its mean. Positive Skewnees indicates a distribution
with an asymmetric tail extending toward more positive values. Negative
Skewnees indicates a distribution with an asymmetric tail extending
toward more negative values.
Skewness =
Negative skewness of M&M Ltd shows that values distribution are more
towards the negative side of mean i.e. more values are less than the
mean of the share price.
15 | P a g e
Positive Kurtosis of M&M Ltd shows that the distribution curve of the
share prices of the company is having more peakedness than the
normal distribution curve. Whereas the negative value of the Sensex
shows that the peakedness in its distribution curve is less than normal
distribution curve.
As the correlation between the shares prices of the M&M Ltd and
Sensex is 0.9545, which is positive hence it shows the high positive
relation between the company and the Sensex. This means that both
M&M Ltd and Sensex are related enough that Sensex can explain the
movements of share prices of M&M Ltd. This means that if prices at
Sensex falls this can intimate that prices of M&M Ltd will also Fall.
Regression equation of
M&M Ltd share price on X=0.387Y- 5376.29
Sensex
Trend Line: Returns values along a linear trend. It fits a straight line
(using the method of least squares) to the arrays known _y's and
known_x's. It Returns the y-values along that line for the array of
new_x's that you specify.
Trend line for M&M Ltd share price (BSE closing)
Above trend line of the M&M Ltd. shows that from last one year the
share price of the company is falling and it is falling with the same
pattern i.e. both the side of the trend line have equal data.
17 | P a g e
Above trend line of the Sensex shows that from last one year the share
price of the company is falling and it is falling with the same pattern i.e.
both the side of the trend line have equal data.
Bibliography:
www.google.com
www.wikipedia.com
www.mahindraltd.com
www.yahoofinance.com
www.economictimes.com
18 | P a g e
19 | P a g e