Mahindra and Mahindra Q3FY08 Results

Mahindra & Mahindra Ltd has announced the following Unaudited results for the quarter ended December 31, 2007:

The Company has posted profit after tax of Rs 4051.533 million for the quarter ended December 31, 2007 as compared to Rs 2416.896 million for the quarter ended December 31, 2006. Total Income has increased from Rs 26173.007 million for the quarter ended December 31, 2006 to Rs 29802.558 million for the quarter ended December 31, 2007.

Mahindra Holidays does private placement before IPO

Mahindra & Mahindra Ltd has announced that Mahindra Holidays & Resorts India Ltd (MHRIL or the "Company"), a leisure hospitality provider offering quality family holidays and a subsidiary of Mahindra Holdings and Finance Ltd (a wholly-owned subsidiary of Mahindra & Mahindra Ltd), has finalised a 2% private placement deal with the State Bank of India for a consideration of around Rs 0.8 billion. The equity shares to be transferred to the State Bank of India shall be subject to lock-in after the IPO as per SEBI regulations.

MHRIL, which filed a draft red herring prospectus with Securities and Exchange Board of India ("SEBI") last month, is targeting an IPO in the first quarter of the year. The Company had filed its Draft Red Herring Prospectus ("DRHP") with the SEBI for an Initial Public Offering ("IPO") of 10,719,347 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process (the "Issue"). The Issue would constitute 13% of the fully diluted post-issue paid-up capital of the Company, which includes Pre IPO placement upto 3%. The Issue comprises a Fresh Issue of 4,122,826 equity shares and an Offer for Sale of upto 6,596,521 equity shares by Mahindra Holdings & Finance Ltd (the "Selling Shareholder").

Mr. Arun Nanda, Chairman of Mahindra Holidays & Resorts, said, "We are overwhelmed with the response to the intended pre-IPO placement and are pleased to have State Bank of India as an investor. He added, "The investment reaffirms our focus on customer centricity and continued effort in developing resorts and services tuned to delivering family holidays. It is also testimony to the evolution of the leisure and hospitality sector and confidence of consumers and investors in the Club Mahindra brand as a leading player in that space."

The Equity Shares are proposed to be listed on the National Stock Exchange of India Ltd ("NSE") and the Bombay Stock Exchange Ltd ("BSE").

The Company provides family holidays primarily through vacation ownership memberships. Its resorts offer the use of furnished accommodation, such as apartments and cottages and an experience through resort specific amenities and facilities, such as restaurants, ayurvedic spas, kid's clubs and a variety of holiday activities. It seeks to be the preferred partner to the urban family for family holidays and holiday services in India. Within a decade, the Company has successfully become a provider of quality family holidays having a pan-India coverage with a total of 21 resorts and 14 branch offices, 43 direct and 80 franchisee retail sales outlets as of October 31, 2007. As of October 31, 2007, it had 63,375 vacation ownership members. MHRIL's flagship service offering is Club Mahindra Holidays, which currently entitles members the choice of holidaying at any of its 19 resorts, for seven days each year, in a season and apartment type of their choice, for 25 years. In addition, its members can choose to access a range of resorts globally through its RCI affiliation.

The Global Coordinator and Book Running Lead Manager ("GCBRLM") to the Issue is Kotak Mahindra Capital Company Ltd and the BRLM is HSBC Securities and Capital Markets (India) Pvt Ltd.

Mahindra and Mahindra Navistar JV

Mahindra & Mahindra Ltd has announced that a wholly owned affiliate of Navistar International Corporation (Other OTC: NAVZ), on November 01, 2007, signed a joint venture agreement with Mahindra & Mahindra Ltd of India to produce diesel engines for medium and heavy commercial trucks and buses in India.

The joint venture, to be named Mahindra International Engines Ltd. (MIEL), will be 51 percent owned by the Mahindra & Mahindra (M&M) and 49 percent owned by Warrenville, III-based Navistar, North America's largest combined commercial truck, school bus and mid-range diesel engine producer. The combined investment of the two Companies will be $90 million over the next five years.

This marks the second such joint venture with M&M, India a leading automotive manufacturer, following a 2005 JV that today makes light, medium and heavy commercial vehicles for India and export markets. The new Company's advanced diesel engines will power the full line of trucks and buses produced by the preceding JV beginning in 2009. Engine components will be sourced locally, going up to 85 percent within two years, due to the strong availability of quality parts and materials from Indian suppliers.

Anand Mahindra VC & MD, Mahindra Group, said "This JV marks a significant milestone in M&M's quest to emerge as a leading customer-centric organization. Our state-of-the-art plant in India will produce world-class engine models for both the Indian and global export markets. The JV will not only extend our existing partnership with Navistar but the resulting synergies will also see MIEL emerge as a force to reckon with in the global OEM market."

Dr. Pawan Goenka, president, Automotive Sector, M&M, said "This JV marks the second significant partnership between M&M and the Navistar affiliate, following a 2005 JV. The new Company's technologically advanced diesel engines will power the full line of trucks and buses produced by the preceding JV by 2009. M&M's sourcing expertise will help the JV source up to 85 percent of engine components locally, due to availability of quality parts and materials from Indian suppliers. This will give us a strong competitive edge in the domestic market and help us leverage economies of scale."

Mahindra and Mahindra Guidance

Mahindra & Mahindra Ltd has announced the following Outlook:

Outlook:

The Indian Economy is performing reasonably well at present. Rainfall has been good, inflation is down to 3% and the GDP growth in Q1 F08 is estimated at around 9% by various agencies. However, worries due to moderation in bank finance to rural sector, sharply appreciating rupee, slowing world growth. and fluid, domestic and international financial conditions, are likely to persist, Interest rate cycle having peaked can be expected to move south in the near future and the industry is likely to gain momentum under its Influence. On balance our outlook for the rest of the year remains positive.

Note: Translation of rupee to dollar is a convenience translation at the respective period end exchange rate.

Mahindra and Mahindra Q2FY07 Results

Mahindra & Mahindra Ltd has announced the following Audited results for the quarter ended September 30, 2007:

The Company has posted a net profit of Rs 2859.470 million for the quarter ended September 30, 2007 as compared to Rs 3864.769 million for the quarter ended September 30, 2006. Total Income has increased from Rs 25634.177 million for the quarter ended September 30, 2006 to Rs 28715.490 million for the quarter ended September 30, 2007.

CLSA - Mahindra and Mahindra

CLSA recommends a BUY on Mahindra and Mahindra with a target price of Rs 840

Citigroup - Mahindra and Mahindra

Citigroup has a BUY on Mahindra and Mahindra, with a target price of Rs 945

This is about 33% up from the current market price.

They feel that sales are being driven by strong growth and there could be acquisitions