Mahindra & Mahindra Limited

NSEI:M&M Stock Report

Market Cap: ₹3.4t

Mahindra & Mahindra Valuation

Is M&M 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 M&M when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: M&M (₹3073) is trading above our estimate of fair value (₹340.24)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for M&M. This is calculated by dividing M&M's market cap by their current earnings.
What is M&M's PE Ratio?
PE Ratio28.9x
Earnings₹118.66b
Market Cap₹3.43t

Price to Earnings Ratio vs Peers

How does M&M's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.5x
MARUTI Maruti Suzuki India
25.4x10.5%₹3.6t
500570 Tata Motors
9x1.0%₹3.0t
HYUNDAI Hyundai Motor India
25.3x9.1%₹1.5t
BAJAJ-AUTO Bajaj Auto
34.5x16.5%₹2.5t
M&M Mahindra & Mahindra
28.9x11.2%₹3.4t

Price-To-Earnings vs Peers: M&M is expensive based on its Price-To-Earnings Ratio (28.9x) compared to the peer average (23.5x).


Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
M&M 28.9xIndustry Avg. 19.4xNo. of Companies8PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: M&M is expensive based on its Price-To-Earnings Ratio (28.9x) compared to the Asian Auto industry average (19.4x).


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 Ratio28.9x
Fair PE Ratio33.5x

Price-To-Earnings vs Fair Ratio: M&M is good value based on its Price-To-Earnings Ratio (28.9x) compared to the estimated Fair Price-To-Earnings Ratio (33.5x).


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 M&M forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹3,073.00
₹3,418.11
+11.2%
5.4%₹3,700.00₹2,709.00n/a36
Dec ’25₹2,966.10
₹3,415.06
+15.1%
5.4%₹3,700.00₹2,709.00n/a36
Nov ’25₹2,817.65
₹3,316.56
+17.7%
6.9%₹3,800.00₹2,709.00n/a36
Oct ’25₹3,165.50
₹3,239.59
+2.3%
8.1%₹3,800.00₹2,482.00n/a37
Sep ’25₹2,805.40
₹3,190.05
+13.7%
10.0%₹3,800.00₹1,963.00n/a38
Aug ’25₹2,828.40
₹3,129.54
+10.6%
12.6%₹3,800.00₹1,790.00n/a39
Jul ’25₹2,875.85
₹2,994.58
+4.1%
14.4%₹3,510.00₹1,790.00n/a38
Jun ’25₹2,506.25
₹2,573.54
+2.7%
12.1%₹3,050.00₹1,615.00n/a37
May ’25₹2,156.35
₹2,027.09
-6.0%
10.0%₹2,550.00₹1,615.00n/a35
Apr ’25₹1,915.95
₹1,925.84
+0.5%
9.1%₹2,300.00₹1,557.00n/a38
Mar ’25₹1,972.95
₹1,897.03
-3.8%
7.6%₹2,225.00₹1,557.00n/a38
Feb ’25₹1,651.15
₹1,821.24
+10.3%
6.4%₹2,100.00₹1,557.00n/a37
Jan ’25₹1,703.30
₹1,777.00
+4.3%
6.6%₹2,100.00₹1,400.00n/a36
Dec ’24₹1,625.50
₹1,748.16
+7.5%
8.5%₹2,100.00₹1,203.00₹2,966.1038
Nov ’24₹1,454.60
₹1,716.34
+18.0%
8.6%₹1,978.00₹1,203.00₹2,817.6538
Oct ’24₹1,554.25
₹1,705.16
+9.7%
8.5%₹1,978.00₹1,203.00₹3,165.5038
Sep ’24₹1,591.95
₹1,693.22
+6.4%
8.4%₹1,978.00₹1,203.00₹2,805.4037
Aug ’24₹1,493.35
₹1,581.74
+5.9%
11.3%₹1,920.00₹1,190.00₹2,828.4038
Jul ’24₹1,453.60
₹1,543.54
+6.2%
9.7%₹1,835.00₹1,190.00₹2,875.8537
Jun ’24₹1,318.90
₹1,543.54
+17.0%
9.7%₹1,835.00₹1,190.00₹2,506.2537
May ’24₹1,226.90
₹1,527.03
+24.5%
9.7%₹1,780.00₹1,150.00₹2,156.3536
Apr ’24₹1,158.70
₹1,533.95
+32.4%
9.2%₹1,780.00₹1,165.00₹1,915.9537
Mar ’24₹1,272.15
₹1,543.59
+21.3%
8.6%₹1,780.00₹1,165.00₹1,972.9539
Feb ’24₹1,352.05
₹1,483.54
+9.7%
11.1%₹1,765.00₹900.00₹1,651.1539
Jan ’24₹1,249.20
₹1,468.24
+17.5%
12.5%₹1,790.00₹900.00₹1,703.3041
Dec ’23₹1,293.45
₹1,468.15
+13.5%
12.5%₹1,790.00₹900.00₹1,625.5041

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


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