“If the economic turnaround that we were seeing in Q1 continues in Q2, Q3 and Q4 then I see no reason why auto industry should not be at the forefront of that turnaround,” says Pawan Goenka, President, Auto & Farm Equipment, ED, Mahindra & Mahindra.
Excerpts from Closing Bell on CNBC-TV18 Watch the full show »
After an abysmal FY14, the auto industry is gearing up for a turnaround in FY15, says Pawan Goenka, President, Auto & Farm Equipment, ED, Mahindra & Mahindra .
In an interview to CNBC-TV18, he says,”FY14 clearly was a bad year for industry overall and also for M&M, FY15 we are beginning to see the turnaround in the industry. The last three-four months have been very good for the passenger vehicle segment of the industry where we are seeing a growth now of about 6-7 percent.”
He further adds that tough the commercial vehicle segment is still in a de-growth phase, he expects it to witness growth in the second half of this year. “If the economic turnaround that we were seeing in Q1 continues in Q2, Q3 and Q4 then I see no reason why auto industry should not be at the forefront of that turnaround,” he says.
Meanwhile, the auto major reported 7.18 percent decline in total sales at 35,175 units in August versus 37,897 units in the same month last year. Sales of passenger vehicles, including Scorpio, XUV 500, Xylo, Bolero and Verito, stood at 14,140 units compared with 15,821 units in August 2013, down 10.62 percent. Four-wheel commercial vehicle sales declined by 5.41 percent to 12,975 units in August 2014 as against 13,718 units in the year-ago month.
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M&M stock price
On September 11, 2014, Mahindra and Mahindra closed at Rs 1375.40, down Rs 9.05, or 0.65 percent. The 52-week high of the share was Rs 1421.00 and the 52-week low was Rs 767.10.
The company’s trailing 12-month (TTM) EPS was at Rs 59.61 per share as per the quarter ended June 2014. The stock’s price-to-earnings (P/E) ratio was 23.07. The latest book value of the company is Rs 270.60 per share. At current value, the price-to-book value of the company is 5.08.