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MAHINDRA & MAHINDRA – An Investment for the very long term

Indian Car Manufacturing Company

Mahindra & Mahindra Limited is an Indian multinational car manufacturing corporation headquartered in Mumbai, Maharashtra, India with Mahindra Group as a parent company.

As reported by Business Today of India:

Notably Mahindra is also the only Indian car manufacturer to make electric passenger cars. The company also recently joined hands with Uber to help the cab aggregator deploy a fleet of hundreds of electric cars in Delhi and Hyderabad by March next year.

According to Reuters

Mahindra & Mahindra Ltd (MAHM.NS), one of India’s oldest vehicle manufacturers, is testing autonomous tractors, trucks and cars, while moving closer to bringing electric vehicles to the United States

We believe that investing in Mahindra & Mahindra Limited is a low risk / high reward proposition as it makes perfect sense in order to capitalize on the growth potential of the Indian economy for the next two decades but also on the expected electric transportation and autonomous vehicles boom.

Mahindra & Mahindra on the Stock Market: How to Invest?

Mahindra & Mahindra Limited is traded as MAHM.NS on the National Stock Exchange of India, MHID on the London Stock Exchange, MAHMF on the OTC market in the US, and as MOM ( ISIN USY541641194 | WKN 899481) on the German stock markets.

Not every platform provides access to Mahindra & Mahindra stock trading, so depending on your broker the following strategies could apply. The following graphs as for the close of Friday 24th of November and the buying ideas still apply as the MHID and MOM stock prices were slightly lower on Monday 27th after the close of the European markets.

Our strategy will consist in Buy-And-Hold for the very long term (10 years at least) and every pullback could be used for adding to the position, so no Stop-Loss is provided for any of these trades.

Buying MAHMF on OTC market in the US

We are envisioning a buying limit order set at $23 for the MAHMF stock.

2017-11-27_MAHMFpng

MAHMF Monthly Price Chart

Buying MHID on the LSE

We are actually considering to buy MHID with a limit order set at $22.5 (yes it is traded in US Dollars despite being on the LSE). Should the limit order become executed MHID will enter in the C.A.T. long term virtual portfolio.

2017-11-27_MHID

MHID Monthly Price Chart

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