BSE:500520

Stock Analysis Report

Mahindra & Mahindra

Executive Summary

Mahindra & Mahindra Limited engages in the automotive and farm equipment businesses in India and internationally.


Snowflake Analysis

Established dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

How has Mahindra & Mahindra's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500520's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.8%

500520

-3.5%

IN Auto

-1.1%

IN Market


1 Year Return

-51.8%

500520

-45.3%

IN Auto

-31.7%

IN Market

Return vs Industry: 500520 underperformed the Indian Auto industry which returned -45.3% over the past year.

Return vs Market: 500520 underperformed the Indian Market which returned -31.7% over the past year.


Shareholder returns

500520IndustryMarket
7 Day12.8%-3.5%-1.1%
30 Day-31.7%-34.3%-25.1%
90 Day-38.7%-43.1%-30.6%
1 Year-51.1%-51.8%-44.1%-45.3%-30.3%-31.7%
3 Year-48.2%-49.8%-50.6%-52.4%-20.1%-24.4%
5 Year-46.0%-48.6%-38.4%-41.3%-11.0%-15.7%

Price Volatility Vs. Market

How volatile is Mahindra & Mahindra's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mahindra & Mahindra undervalued compared to its fair value and its price relative to the market?

16.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500520 (₹321.45) is trading above our estimate of fair value (₹148.96)

Significantly Below Fair Value: 500520 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500520 is poor value based on its PE Ratio (16.4x) compared to the Auto industry average (12.8x).

PE vs Market: 500520 is poor value based on its PE Ratio (16.4x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500520's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500520 is good value based on its PB Ratio (0.9x) compared to the IN Auto industry average (1.6x).


Next Steps

Future Growth

How is Mahindra & Mahindra forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 500520's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if 500520's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500520's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: 500520's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500520's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Mahindra & Mahindra performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500520 has high quality earnings.

Growing Profit Margin: 500520's current net profit margins (2.1%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 500520's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: 500520's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500520 had negative earnings growth (-62.3%) over the past year, making it difficult to compare to the Auto industry average (0%).


Return on Equity

High ROE: 500520's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Mahindra & Mahindra's financial position?


Financial Position Analysis

Short Term Liabilities: 500520's short term assets (₹688.3B) exceed its short term liabilities (₹514.9B).

Long Term Liabilities: 500520's short term assets (₹688.3B) exceed its long term liabilities (₹660.7B).


Debt to Equity History and Analysis

Debt Level: 500520's debt to equity ratio (168.1%) is considered high.

Reducing Debt: 500520's debt to equity ratio has increased from 120.9% to 168.1% over the past 5 years.

Debt Coverage: 500520's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 500520's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Mahindra & Mahindra's current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500520's dividend (2.65%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: 500520's dividend (2.65%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: 500520's dividends per share have been stable in the past 10 years.

Growing Dividend: 500520's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.5%), 500520's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500520's dividends in 3 years are forecast to be well covered by earnings (26.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.5yrs

Average board tenure


CEO

Pawan Goenka (65yo)

3.42s

Tenure

₹121,922,000

Compensation

Dr. Pawan Kumar Goenka has been the Managing Director of Mahindra & Mahindra Limited since November 12, 2016 and serves as Chief Executive Officer since April 1, 2020. Dr. Goenka served as Member of Group  ...


CEO Compensation Analysis

Compensation vs Market: Pawan's total compensation ($USD1.60M) is above average for companies of similar size in the Indian market ($USD740.34K).

Compensation vs Earnings: Pawan's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Pawan Goenka
CEO & MD3.42yrs₹121.92m0.0073% 22.2m
Anish Shah
MD & CEOno datano datano data
Anupam Puri
Independent Director19.25yrs₹3.75mno data
Nadir Godrej
Independent Director27.67yrs₹4.40m0.11% 322.9m
Anand Mahindra
Non-Executive Chairman7.67yrs₹86.70m0.17% 529.7m
Murugappan Murugappan
Independent Director27.67yrs₹4.65m0.018% 56.1m
Keshub Mahindra
Chairman Emeritus7.67yrs₹682.00k0.21% 655.9m
Thothala Manoharan
Independent Director3.42yrs₹4.70mno data
Ravindra Kulkarni
Independent Director23.25yrs₹5.12m0.015% 47.2m
Rajesh Jejurikar
Additional Director & Executive Director of Automotive and Farm Sectorsno datano datano data

13.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 500520's board of directors are seasoned and experienced ( 13.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mahindra & Mahindra Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mahindra & Mahindra Limited
  • Ticker: 500520
  • Exchange: BSE
  • Founded: 1945
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹305.378b
  • Shares outstanding: 1.09b
  • Website: https://www.mahindra.com

Number of Employees


Location

  • Mahindra & Mahindra Limited
  • Mahindra Towers
  • 5th Floor
  • Mumbai
  • Maharashtra
  • 400018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAHM.FOTCPK (Pink Sheets LLC)GDR EACH REPR 1 ORD INR10 REG'S'USUSDDec 1993
MHNDRBDL (Bourse de Luxembourg)GDR EACH REPR 1 ORD INR10 REG'S'LUUSDDec 1993
MHIDLSE (London Stock Exchange)GDR EACH REPR 1 ORD INR10 REG'S'GBUSDDec 1993
MOMDB (Deutsche Boerse AG)GDR EACH REPR 1 ORD INR10 REG'S'DEEURDec 1993
MHIDLBATS-CHIXE (BATS 'Chi-X Europe')GDR EACH REPR 1 ORD INR10 REG'S'GBUSDDec 1993
MAHD.YOTCPK (Pink Sheets LLC)GLOBAL DP 144AUSUSDJan 1994
500520BSE (Mumbai Stock Exchange)YesOrdinary SharesININRNov 1994
M&MNSEI (National Stock Exchange of India)YesOrdinary SharesININRNov 1994

Biography

Mahindra & Mahindra Limited engages in the automotive and farm equipment businesses in India and internationally. The company operates through Automotive, Farm Equipment, Financial Services, Real Estate, Hospitality, and Others segments. It offers aircrafts, and airframe parts and assemblies; passenger and commercial vehicles, trucks, buses, vans, cars, utility vehicles, and electric vehicles; personal and commercial watercrafts; motorcycles and scooters; construction equipment, such as backhoe loaders under the Mahindra EarthMaster brand name; road construction equipment comprising motor graders under the Mahindra RoadMaster brand. The company also provides land systems, naval systems, defense electronics, and security consulting services for defense industry; pre-owned car and car services; and farm equipment, including tractors, farm machineries, spare parts, and related services. In addition, it operates M2All, an e-commerce platform for various portfolio of products; approximately 46 resorts; and solar PV projects. Further, the company offers financial products and services comprising retail and other loans, SME finance, housing finance, mutual funds, vehicle and equipment finance, and life and non-life insurance broking services; logistics services; consulting services; and information technology services, as well as power back up solutions, such as diesel generators and gas powered gensets. Additionally, it engages in the project development, management, operation, and leasing of commercial and residential complexes; sale of timeshare and vacation ownership; making, processing, and trading of steel for automotive, non-automotive, and power industries. The company has a strategic alliance with Ford Motor Company. The company was founded in 1945 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 12:59
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.