Mahindra & Mahindra Limited

BSE:500520 Stock Report

Market Cap: ₹3.4t

Mahindra & Mahindra Valuation

Is 500520 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500520 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500520 (₹3013) is trading above our estimate of fair value (₹341.06)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500520?

Key metric: As 500520 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500520. This is calculated by dividing 500520's market cap by their current earnings.
What is 500520's PE Ratio?
PE Ratio28.3x
Earnings₹118.66b
Market Cap₹3.36t

Price to Earnings Ratio vs Peers

How does 500520's PE Ratio compare to its peers?

The above table shows the PE ratio for 500520 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.6x
MARUTI Maruti Suzuki India
24.8x10.5%₹3.5t
500570 Tata Motors
8.7x1.0%₹2.9t
HYUNDAI Hyundai Motor India
24.9x9.7%₹1.5t
BAJAJ-AUTO Bajaj Auto
35.9x16.5%₹2.6t
500520 Mahindra & Mahindra
28.3x11.0%₹3.4t

Price-To-Earnings vs Peers: 500520 is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the peer average (23.6x).

Price to Earnings Ratio vs Industry

How does 500520's PE Ratio compare vs other companies in the Asian Auto Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
500520 28.3xIndustry Avg. 17.2xNo. of Companies9PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500520 is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the Asian Auto industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is 500520's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500520 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.3x
Fair PE Ratio33.3x

Price-To-Earnings vs Fair Ratio: 500520 is good value based on its Price-To-Earnings Ratio (28.3x) compared to the estimated Fair Price-To-Earnings Ratio (33.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500520 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹3,013.00
₹3,383.41
+12.3%
6.6%₹3,700.00₹2,700.00n/a37
Nov ’25₹2,817.00
₹3,316.56
+17.7%
6.9%₹3,800.00₹2,709.00n/a36
Oct ’25₹3,166.40
₹3,239.59
+2.3%
8.1%₹3,800.00₹2,482.00n/a37
Sep ’25₹2,806.10
₹3,190.05
+13.7%
10.0%₹3,800.00₹1,963.00n/a38
Aug ’25₹2,829.20
₹3,129.54
+10.6%
12.6%₹3,800.00₹1,790.00n/a39
Jul ’25₹2,873.60
₹2,994.58
+4.2%
14.4%₹3,510.00₹1,790.00n/a38
Jun ’25₹2,506.45
₹2,573.54
+2.7%
12.1%₹3,050.00₹1,615.00n/a37
May ’25₹2,156.30
₹2,027.09
-6.0%
10.0%₹2,550.00₹1,615.00n/a35
Apr ’25₹1,915.40
₹1,925.84
+0.5%
9.1%₹2,300.00₹1,557.00n/a38
Mar ’25₹1,972.65
₹1,897.03
-3.8%
7.6%₹2,225.00₹1,557.00n/a38
Feb ’25₹1,650.70
₹1,821.24
+10.3%
6.4%₹2,100.00₹1,557.00n/a37
Jan ’25₹1,703.60
₹1,777.00
+4.3%
6.6%₹2,100.00₹1,400.00n/a36
Dec ’24₹1,626.70
₹1,748.16
+7.5%
8.5%₹2,100.00₹1,203.00n/a38
Nov ’24₹1,454.45
₹1,716.34
+18.0%
8.6%₹1,978.00₹1,203.00₹2,817.0038
Oct ’24₹1,553.65
₹1,705.16
+9.8%
8.5%₹1,978.00₹1,203.00₹3,166.4038
Sep ’24₹1,591.50
₹1,693.22
+6.4%
8.4%₹1,978.00₹1,203.00₹2,806.1037
Aug ’24₹1,493.25
₹1,581.74
+5.9%
11.3%₹1,920.00₹1,190.00₹2,829.2038
Jul ’24₹1,453.75
₹1,543.54
+6.2%
9.7%₹1,835.00₹1,190.00₹2,873.6037
Jun ’24₹1,318.85
₹1,543.54
+17.0%
9.7%₹1,835.00₹1,190.00₹2,506.4537
May ’24₹1,226.60
₹1,527.03
+24.5%
9.7%₹1,780.00₹1,150.00₹2,156.3036
Apr ’24₹1,158.55
₹1,533.95
+32.4%
9.2%₹1,780.00₹1,165.00₹1,915.4037
Mar ’24₹1,273.65
₹1,543.59
+21.2%
8.6%₹1,780.00₹1,165.00₹1,972.6539
Feb ’24₹1,352.20
₹1,483.54
+9.7%
11.1%₹1,765.00₹900.00₹1,650.7039
Jan ’24₹1,249.30
₹1,468.24
+17.5%
12.5%₹1,790.00₹900.00₹1,703.6041
Dec ’23₹1,293.35
₹1,468.15
+13.5%
12.5%₹1,790.00₹900.00₹1,626.7041
Nov ’23₹1,353.80
₹1,409.00
+4.1%
12.3%₹1,765.00₹900.00₹1,454.4541

Analyst Forecast: Target price is less than 20% higher than the current share price.

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