multibagger stock of mahindra group

Can mahindra epc share become multibagger stock

Company Business Profile:

Mahindra and Mahindra Ltd. (M&M) had acquired majority stake in Mahindra EPC Irrigation Limited by the way of preferential issuance of equity shares.  After this transactions of equity transfer Mahindra & Mahindra group entered into Micro Irrigation industry or segment. Mahindra EPC is developing and manufacturing its products as per the international standards with French bases technology which is making easier to Indian farmers to increase their income with less amount o investment. This advance technology is also helping the Indian farmers to stand up with modern techniques of agriculture sector. Company is also organising agriculture awareness camps into the rural areas or villages for the awareness of modern farming & agriculture techniques. Micro irrigation, latest technology of Pumps is giving boost to the Mahindra EPC company sale.

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Mahindra EPC Company Products List

Drip irrigation:

It is an application which helps to use of water in the irrigation segment in the intelligence and with targeted way. It also helps the Indian farmers to improve their income by increasing crop yield and its quality because this product helps to use fertilizer & chemicals straightway into the roots of the plants. It also reduces the labour cost.

Sprinkler irrigation systems:

It is also a modern farming technique & it provide quality, high yield & cost efficiency. Also helpful in the growth of the crops.

Pumps:

Mahindra EPC provides pumps which offers unique design protection of winding &  Best cooling system which make the pumps life longer.

HDPE pipes:

Mahindra EPC Offers wide range of Pipes with different specifications.

Landscape irrigation:

 Mahindra group has its own housing construction business with the name if Mahindra life space developer’s ltd. This company is also listed in the Indian stock exchanges like BSE & NSE.

Mahindra EPC is offering a watering system. This system   helps to create & maintain lawns, gardens as well as per requirement landscapes. Landscape irrigation offers many benefits as compared to traditional irrigation process.  It is helpful in saving water and time. Mahindra EPC company also offers different products like disc, fertilizer tank etc.

In this article you will get Answers of following Questions on Mahindra EPC:

• Can Mahindra EPC become multibagger stock?
• Should we invest in the Mahindra epc?
• Is Mahindra epc good for investment?
• Why investors should invest in Mahindra epc
• Can Mahindra epc become multibaggerstock of 2021
• Can Mahindra epc become multibaggerstock of 2022
• Experts view on Mahindra epc
• which mahindra group company become multibagger

 Personal view on Mahindra EPC Stock:

Fundamental analysis on Mahindra epc

Mahindra group of companies has been performing very well since many years. It is big  brand name of India. Mahindra group have diversified business portfolio out which EPC business is also performing very well. There are fewer companies in the irrigation sector those are performing well. This company stock has given handsome returns to its shareholders in the past 1 year.  When nifty was trading around 7511 levels then Mahindra epc stock was trading around 775rs or 77rs, from these price levels Mahindra EPC made 52 weeks high of 185rs.

Company Financials & results:

Bse Code: 523754

Nse: MAHEPC

If we will talk about the company book value then it is above 66 with the face value of 10rs each. Mahindra EPC market cap is above 375cr & Earning per share of this company is above 4rs. The stock is trading with P/E ratio above 30 against the Industry P/E ration of 20. P/E will increase once the profit of the company will increase. Mahindra EPC has dividend yield nearly  0.89. If we will talk about the Last quarter results which is of standalone June 2021 the year on year basis company sales was nearly above 38crore. It reported more than 17% dip but it was expected due to Covid lockdown in the country but still Company performed well.  If we will compare this result with June 2020 the company sale was above 48 crore. In June 2021 quarter Mahindra epc loss was at 3.8 crores. Loss had increased from June 2020 which was around 3.25cr. EBITA of the company also came down more than 165% which is nearly 3.5cr.  But this kind of loss was expected in last quarter. Company management is confident that company will recover this loss and will come back into profit. Which seems very positive statement by the company management & we can trust on Mahindra group management. An even employee cost of the company also increased from march 2021 quarter which was 7.01 & in June 2021 quarter it is nearly 7.69cr. In the march 2021, Quarter Company was in profit & company had net profit above 4cr. In the March quarter of June 2021 Company Eps was around 1.45 but in June 2021 it came into the negative i.e -1.39.

The question is the if the company is in loss then can Mahindra epc stock  become multibagger stock  in coming weeks, months or years ?  For getting the answer of this question you have to strust on company management. Because this company was not performing bad before June 2021 quarters. It is only the matter of time. No one was expecting covid Pandemic in this world due to which many companies faced losses. But I strongly believe that strong management companies having good presence of their products into the market, these companies will recover their short term losses.

Mahindra group management is a strong management. It is always safe to make a bet on those companies stocks having experienced & strong management. Indian stock market is in strong bull run. In bull markets sometimes we may see sharp up & down levels in the stock market. It is better to invest in strong companies. Since Mahindra group acquired EPC India , after that company started perform well . It is very difficult to survive in the irrigation segment because it requires more cash on the balance sheet of company. These kinds of the companies always require large work capital to run the business. If we will see its competitors in the market then most of the companies are under huge debt and struggling for working capital. It will not be good to disclose the name of those companies.  Mahindra EPC may do some small acquisitions in the coming months.

Mahindra EPC is more focusing on micro, drip irrigation & pumps business having more demand in the agriculture sector. Present government of India has more focus on agriculture sector. Even we may say that any government will come into any country of this world that government will have more focus on agriculture sector because this is the sector which increases the rural income. Government is also making announcements in the favour of the farmers. We can expect very good budget & very promising announcements in the favour of agriculture sector.

Mahindra EPC has also Agri Showroom in the Maharashtra where farmers can get all agri products in the one showroom. If we will talk about the Mahindra & Mahindra stake in EPC India then this business group hold 38% holding which made presence of Mahindra group in the micro irrigation sector.

In Nutshell, Mahindra EPC may give multibagger returns. Above all factors discussed is giving me confidence to use these words about Mahindra EPC LTD. Mahindra EPC is in the hands of strong management of Mahindra group, it is also giving me more confidence. Mahindra EPC is pruning its business in Agriculture sector and micro irrigation sect. It is another factor which is supporting this company. Indian government will surely make focus for increasing the income of the Indian farmers & we may see good announcements in the favour of Indian farmers in the near future. Mahindra EPC is going to be best investment stock for future as per my personal point of view.

Disclaimer: Above discussion on Mahindra EPC, it is my personal view on the stock. Please do your own research before making any buying or selling decision. My view may differ from others analysts view.

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