company background image
M&M

Mahindra & Mahindra NSEI:M&M Stock Report

Last Price

₹1.11k

Market Cap

₹1.2t

7D

11.4%

1Y

42.3%

Updated

28 Jun, 2022

Data

Company Financials +
M&M fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends4/6

M&M Stock Overview

Mahindra & Mahindra Limited provides mobility products and farm solutions in India and internationally.

Mahindra & Mahindra Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mahindra & Mahindra
Historical stock prices
Current Share Price₹1,112.00
52 Week High₹1,095.00
52 Week Low₹671.15
Beta1.14
1 Month Change16.70%
3 Month Change40.17%
1 Year Change42.27%
3 Year Change66.90%
5 Year Change64.12%
Change since IPO2,272.27%

Recent News & Updates

Jun 16
Mahindra & Mahindra (NSE:M&M) Has Announced That It Will Be Increasing Its Dividend To ₹11.55

Mahindra & Mahindra (NSE:M&M) Has Announced That It Will Be Increasing Its Dividend To ₹11.55

Mahindra & Mahindra Limited ( NSE:M&M ) will increase its dividend on the 4th of September to ₹11.55. Despite this...

Shareholder Returns

M&MIN AutoIN Market
7D11.4%9.3%4.1%
1Y42.3%11.1%-0.02%

Return vs Industry: M&M exceeded the Indian Auto industry which returned 11.1% over the past year.

Return vs Market: M&M exceeded the Indian Market which returned -0% over the past year.

Price Volatility

Is M&M's price volatile compared to industry and market?
M&M volatility
M&M Average Weekly Movement4.3%
Auto Industry Average Movement4.8%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: M&M is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: M&M's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1945260,000Anish Shahhttps://www.mahindra.com

Mahindra & Mahindra Limited provides mobility products and farm solutions in India and internationally. The company operates through Automotive, Farm Equipment, Financial Services, Hospitality, Real Estate, 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, scooters, mopeds, and electric two wheelers; construction equipment, such as backhoe loaders under the Mahindra EarthMaster brand; and road construction equipment comprising motor graders under the Mahindra RoadMaster brand.

Mahindra & Mahindra Fundamentals Summary

How do Mahindra & Mahindra's earnings and revenue compare to its market cap?
M&M fundamental statistics
Market Cap₹1.20t
Earnings (TTM)₹65.77b
Revenue (TTM)₹911.05b

18.8x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
M&M income statement (TTM)
Revenue₹911.05b
Cost of Revenue₹516.48b
Gross Profit₹394.57b
Other Expenses₹328.80b
Earnings₹65.77b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)59.24
Gross Margin43.31%
Net Profit Margin7.22%
Debt/Equity Ratio131.4%

How did M&M perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

20%

Payout Ratio

Does M&M pay a reliable dividends?

See M&M dividend history and benchmarks
When do you need to buy M&M by to receive an upcoming dividend?
Mahindra & Mahindra dividend dates
Ex Dividend DateJul 14 2022
Dividend Pay DateSep 04 2022
Days until Ex dividend15 days
Days until Dividend pay date67 days

Does M&M pay a reliable dividends?

See M&M dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

M&M key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA11.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does M&M's PE Ratio compare to its peers?

M&M PE Ratio vs Peers
The above table shows the PE ratio for M&M vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.7x
MARUTI Maruti Suzuki India
66.1x39.4%₹2.6t
BAJAJ-AUTO Bajaj Auto
18.3x5.0%₹1.1t
505200 Eicher Motors
46.7x26.2%₹778.1b
500182 Hero MotoCorp
23.8xn/a₹550.9b
M&M Mahindra & Mahindra
18.8xn/a₹1.2t

Price-To-Earnings vs Peers: M&M is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (38.7x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: M&M is good value based on its Price-To-Earnings Ratio (18.8x) compared to the Indian Auto industry average (33.4x)


Price to Earnings Ratio vs Fair Ratio

What is M&M'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.

M&M PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate M&M's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: M&M (₹1112) is trading above our estimate of fair value (₹75.08)

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


Price to Earnings Growth Ratio

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


Discover undervalued companies

Future Growth

How is Mahindra & Mahindra forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


42.9%

Forecasted Automobiles industry annual growth in earnings

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if M&M's forecast earnings growth is above the savings rate (6.7%).

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

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

Revenue vs Market: Insufficient data to determine if M&M's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if M&M's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: M&M's Return on Equity is forecast to be low in 3 years time (16%).


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: M&M has high quality earnings.

Growing Profit Margin: M&M's current net profit margins (7.2%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: M&M's earnings have declined by 13% per year over the past 5 years.

Accelerating Growth: M&M's earnings growth over the past year (64.4%) exceeds its 5-year average (-13% per year).

Earnings vs Industry: M&M earnings growth over the past year (64.4%) exceeded the Auto industry 27.2%.


Return on Equity

High ROE: M&M's Return on Equity (12.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Mahindra & Mahindra's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: M&M's short term assets (₹751.5B) exceed its short term liabilities (₹562.9B).

Long Term Liabilities: M&M's short term assets (₹751.5B) exceed its long term liabilities (₹610.0B).


Debt to Equity History and Analysis

Debt Level: M&M's net debt to equity ratio (92.7%) is considered high.

Reducing Debt: M&M's debt to equity ratio has reduced from 135.1% to 131.4% over the past 5 years.

Debt Coverage: M&M's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: M&M's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.04%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 28 2022Ex Dividend DateJul 14 2022Dividend Pay DateSep 04 202252 days from Ex DividendBuy in the next 15 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: M&M's dividend (1.04%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: M&M's dividend (1.04%) is low compared to the top 25% of dividend payers in the Indian market (1.87%).


Stability and Growth of Payments

Stable Dividend: M&M's dividend payments have been volatile in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.5%), M&M's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (40.1%), M&M's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.6yrs

Average management tenure


CEO

Anish Shah (52 yo)

1.17yrs

Tenure

₹94,126,000

Compensation

Dr. Anish Shah serves as Managing Director and Chief Executive Officer of Mahindra and Mahindra Limited since April 2, 2021 and has been its Additional Director since April 1, 2020. He serves as Non-Execut...


CEO Compensation Analysis

Compensation vs Market: Anish's total compensation ($USD1.20M) is about average for companies of similar size in the Indian market ($USD1.20M).

Compensation vs Earnings: Insufficient data to compare Anish's compensation with company performance.


Leadership Team

Experienced Management: M&M's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: M&M's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: M&M insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Mahindra & Mahindra Limited
  • Ticker: M&M
  • Exchange: NSEI
  • Founded: 1945
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Implied Market Cap: ₹1.202t
  • Shares outstanding: 1.11b
  • Website: https://www.mahindra.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.