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

Fundamentals

Established dividend payer and fair value.

Risks

  • Mahindra & Mahindra has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-3.3%

BSE:500520

-1.5%

IN Auto

-0.7%

IN Market


1 Year Return

-45.1%

BSE:500520

-32.9%

IN Auto

-12.1%

IN Market

500520 underperformed the Auto industry which returned -33% over the past year.

500520 underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

500520IndustryMarket
7 Day-3.3%-1.5%-0.7%
30 Day-11.7%-3.5%-4.6%
90 Day-15.1%-13.4%-4.3%
1 Year-44.3%-45.1%-31.9%-32.9%-10.3%-12.1%
3 Year-25.1%-27.4%-19.9%-22.5%18.9%12.8%
5 Year-20.2%-24.0%6.1%1.0%37.6%24.7%

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 based on future cash flows and its price relative to the stock market?

12.75x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Mahindra & Mahindra's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Mahindra & Mahindra's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Mahindra & Mahindra is good value based on earnings compared to the IN Auto industry average.

Mahindra & Mahindra is good value based on earnings compared to the India market.


Price Based on Expected Growth

Mahindra & Mahindra earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Mahindra & Mahindra is good value based on assets compared to the IN Auto industry average.


Next Steps

Future Growth

How is Mahindra & Mahindra expected to perform in the next 1 to 3 years based on estimates from 28 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mahindra & Mahindra's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Mahindra & Mahindra's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Mahindra & Mahindra's revenue growth is positive but not above the India market average.

Mahindra & Mahindra's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Mahindra & Mahindra's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Mahindra & Mahindra is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

15.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mahindra & Mahindra's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Mahindra & Mahindra's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Mahindra & Mahindra's 1-year earnings growth is negative, it can't be compared to the IN Auto industry average.


Return on Equity

Mahindra & Mahindra has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Mahindra & Mahindra used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.


Return on Capital Employed

Mahindra & Mahindra's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Mahindra & Mahindra's financial position?


Financial Position Analysis

Mahindra & Mahindra is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Mahindra & Mahindra's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Mahindra & Mahindra's level of debt (146.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (121.6% vs 146.6% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

1.81%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Mahindra & Mahindra's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Mahindra & Mahindra's dividend is below the markets top 25% of dividend payers in India (2.52%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).


Next Steps

Management

What is the CEO of Mahindra & Mahindra's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Pawan Goenka (65yo)

2.8yrs

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 its Member of Group Executive Board and Whole-time Director. Dr. Goenka served as  ...


CEO Compensation Analysis

Pawan's remuneration is higher than average for companies of similar size in India.

Pawan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.8yrs

Average Tenure

60.5yo

Average Age

The average tenure for the Mahindra & Mahindra management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.1yrs

Average Tenure

67.5yo

Average Age

The tenure for the Mahindra & Mahindra board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹1,864,74904 Jan 19
Nadir Godrej
EntityIndividual
Role
Member of the Board of Directors
Shares2,500
Max Price₹745.90

Ownership Breakdown


Management Team

  • Partha Parthasarathy (57yo)

    Group CFO

    • Tenure: 5.8yrs
  • Ramesh Iyer (61yo)

    President of Financial Services Sector & Member of the Group Executive Board

  • Zhooben Bhiwandiwala (59yo)

    President of Mahindra Partners and Group Legal & Member of Group Executive Board

  • Rajesh Jejurikar (55yo)

    President of Farm Equipment Sector & Member of Group Executive Board

    • Tenure: 6.3yrs
  • Narayan Shankar

    Senior VP

  • Anand Mahindra (64yo)

    Executive Chairman & Member of Group Executive Board

    • Compensation: 86.70m
  • CP Gurnani (60yo)

    Member of the Group Executive Board

  • Rajan Wadhera (61yo)

    President of Automotive Sector & Member of the Group Executive Board

  • Pawan Goenka (65yo)

    MD, Member of Executive Board & Whole Time Director

    • Tenure: 2.8yrs
    • Compensation: 121.92m
  • Rajeev Dubey

    Group President of HR & Corp. Svcs


Board Members

  • Nadir Godrej (68yo)

    Independent Director

    • Tenure: 27.0yrs
    • Compensation: 4.40m
  • Vishakha Desai (70yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: 4.27m
  • Anand Mahindra (64yo)

    Executive Chairman & Member of Group Executive Board

    • Tenure: 7.0yrs
    • Compensation: 86.70m
  • Tino Puri (74yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: 3.75m
  • Keshub Mahindra (95yo)

    Chairman Emeritus

    • Tenure: 7.0yrs
    • Compensation: 52.00m
  • Vikram Mehta (67yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: 4.40m
  • Ravi Kulkarni (74yo)

    Independent Director

    • Tenure: 22.6yrs
    • Compensation: 5.12m
  • Thothala Manoharan (63yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: 4.70m
  • Murugappan Murugappan (64yo)

    • Tenure: 1.1yrs
    • Compensation: 4.65m
  • Pawan Goenka (65yo)

    MD, Member of Executive Board & Whole Time Director

    • Tenure: 5.9yrs
    • Compensation: 121.92m

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: ₹574.257b
  • Shares outstanding: 1.09b
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500520BSE (Mumbai Stock Exchange)YesOrdinary SharesININRNov 1994
M&MNSEI (National Stock Exchange of India)YesOrdinary SharesININRNov 1994
MAHM.FOTCPK (Pink Sheets LLC)GDR REG SUSUSDDec 1993
MHNDRBDL (Bourse de Luxembourg)GDR REG SLUUSDDec 1993
MHIDLSE (London Stock Exchange)GDR REG SGBUSDDec 1993
MOMDB (Deutsche Boerse AG)GDR REG SDEEURDec 1993
MHIDLBATS-CHIXE (BATS 'Chi-X Europe')GDR REG SGBUSDDec 1993

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, H ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:41
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.