M & M Ltd :

Decision making becomes easier or comfortable when you know what you are about to do and what could be the result. Though this is very true when it comes to investing, majority of the investments are made without fully understanding the company at the time of investing or even after that! Spending, atleast a few minutes understanding the business of the company, if not the detailed financial analysis, can give clarity on the worthiness of the investments being made. And this becomes all the more handy to 'accumulate' these stocks when the stock price falls for various reasons.

For Instance, when you see the name M&M many of us know that it belongs to the Mahindra & Mahindra automobiles and the charismatic Chairman Anand Mahindra. Few of us dig deeper to understand the history of M&M and its complete business profile - leave along the balance sheets. Let us see if it inspires more confidence after reading a brief profile of M&M:

• M&M was listed in BSE in 1956. 
• M&M has an unbroken dividend track record since its listing in BSE.
• It is world's largest tractor manufacturer.by volume
• Also manufactures 
• Passenger cars
• Commercial vehicles
• Two wheelers
• Subsidary companies are into
• Information Technology
• Financial Services
• Time Shares
• Engineering services
• Real estates
• Organized retail
• Aero space
• Defence
• Agri inputs
• Micro irrigation etc
• M&M acts as holding company for all these group companies with market value of Rs.30,000 Cr. That's Rs.300 Billion! This is against the acquisition value of Rs.4300 Cr.
• Market cap of the core company M&M is Rs.97 Billion.
• Key Group companies include:
• Tech Mahindra (which acquired Satyam Computers)
• Swaraj Engines
• Ssangyong Motor Company
• M&M Financial services
• Mahindra Life Space developers
• Mahindra Punjab Tractors
• Mahindra Holiday and Resorts
• The 'Mahindra' name in 'Kotak Mahindra Bank' has a huge history by itself. Kotak became a brand after including Mahindra name in its banner. Today Kotak Mahindra Bank is valued at Rs.1.26 Trillion!

Had someone known some of these backgrounds and then invested, they would have the conviction to stay invested and add more to the investments as and when opportunity arises.

For instance, M&M hit a low of Rs.1110 on 4th Sept 2015 and currently trades at Rs.1365 (as on 30th Nov 2015). That's a gain of Rs.255 equivalent to Rs.23%. (See chart below). But the fact is many investors would not have invested in M&M. And even those who already own it, would not have bought more of M&M at cheap price. Only when you know a bit about the company's strength you will be able to benefit.