Jason, welcome to the forum.
The 1938 is the date, the S/42 is the manufacturer that was Mauser.
There is likely a letter under the serial number on the front of the frame.
It is almost impossible to find out what person or unit it belonged to. However, get any information you can from your grandfather; whether he "captured" it or got it in a poker game, it'll be cool to know.
Ed
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Edward Tinker
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Co-Author of Police Lugers - Co-Author of Simson Lugers
Author of Veteran Bring Backs Vol I, Vol II, Vol III and Vol IV
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