M&M is seeking to replicate the success of yesteryears (2002) in terms of profitability and growth and bringing back the sharp focus on financial returns, Anand Mahindra said at the firm’s 74th annual general meeting on Friday.
“Life has led us full circle,” said Mahindra, alluding to 2002. M&M, which till then was a blue-chip stock, had hit a rough patch with its share price plunging to Rs 56 and it was removed from the Nifty companies. That is when it committed to a focus on financial returns. And, it paid off handsomely. It doubled its profits in a year’s time against the targeted three years.
“In 2020, tough times are back again and we are rededicating ourselves to those financial goals and growth aspirations, with a laser sharp focus on financial returns. We have started identifying and taking appropriate action on businesses that have not lived up to their business plans,” said Mahindra.
Analysts are of the view that M&M shares are undervalued just as it was in 2002, Mahindra said, adding, “I am optimistic that history will indeed repeat itself.”