BSE:532720

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Mahindra & Mahindra Financial Services

Executive Summary

Mahindra & Mahindra Financial Services Limited, a non-banking financial company, provides asset finance in the rural and semi-urban areas in India.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532720's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

532720

2.7%

IN Consumer Finance

2.4%

IN Market


1 Year Return

-57.9%

532720

1.3%

IN Consumer Finance

5.1%

IN Market

Return vs Industry: 532720 underperformed the Indian Consumer Finance industry which returned 1.3% over the past year.

Return vs Market: 532720 underperformed the Indian Market which returned 5.1% over the past year.


Shareholder returns

532720IndustryMarket
7 Day4.1%2.7%2.4%
30 Day-35.2%2.9%5.2%
90 Day-21.5%40.3%21.1%
1 Year13.3%-57.9%4.1%1.3%7.0%5.1%
3 Year-13.9%-68.8%42.6%34.0%4.8%-0.2%
5 Year41.2%-49.7%180.7%156.3%30.4%20.7%

Price Volatility Vs. Market

How volatile is Mahindra & Mahindra Financial Services'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 Financial Services undervalued compared to its fair value and its price relative to the market?

5.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532720 (₹132.2) is trading above our estimate of fair value (₹40.8)

Significantly Below Fair Value: 532720 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532720 is good value based on its PE Ratio (5.8x) compared to the IN Consumer Finance industry average (11.1x).

PE vs Market: 532720 is good value based on its PE Ratio (5.8x) compared to the Indian market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: 532720 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 532720 is overvalued based on its PB Ratio (0.7x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Mahindra & Mahindra Financial Services forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532720's forecast earnings growth (27.4% per year) is above the savings rate (7.2%).

Earnings vs Market: 532720's earnings (27.4% per year) are forecast to grow faster than the Indian market (23.8% per year).

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

Revenue vs Market: 532720's revenue (9.3% per year) is forecast to grow slower than the Indian market (10.3% per year).

High Growth Revenue: 532720's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532720's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

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

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532720 has high quality earnings.

Growing Profit Margin: 532720's current net profit margins (21.2%) are lower than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: 532720's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: 532720's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532720 had negative earnings growth (-13.4%) over the past year, making it difficult to compare to the Consumer Finance industry average (-3.4%).


Return on Equity

High ROE: 532720's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Mahindra & Mahindra Financial Services's financial position?


Financial Position Analysis

Short Term Liabilities: 532720's short term assets (₹786.1B) exceed its short term liabilities (₹317.0B).

Long Term Liabilities: 532720's short term assets (₹786.1B) exceed its long term liabilities (₹380.4B).


Debt to Equity History and Analysis

Debt Level: 532720's debt to equity ratio (471.8%) is considered high.

Reducing Debt: 532720's debt to equity ratio has reduced from 493.5% to 471.8% over the past 5 years.

Debt Coverage: 532720's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 532720's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

2.64%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 532720's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 532720's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532720's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532720's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532720 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532720's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

8.7yrs

Average management tenure


CEO

Ramesh Iyer (62 yo)

21.25yrs

Tenure

₹67,064,000

Compensation

Mr. Ramesh Iyer has been Managing Director of Mahindra & Mahindra Financial Services Limited since April 2001 and its Member of Group Executive Board since March 2020. He serves as Vice Chairman & Managing ...


CEO Compensation Analysis

Compensation vs Market: Ramesh's total compensation ($USD898.80K) is above average for companies of similar size in the Indian market ($USD373.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dhananjay Mungale
Independent Chairman & Member of the Group Executive Board4.42yrs₹3.93m0.0081%
₹ 6.6m
Ramesh Iyer
Vice-Chairman21.25yrs₹67.06m0.13%
₹ 104.7m
Vankipuram Parthasarathy
President of Mobility Services Sector6.08yrsno data0.000040%
₹ 32.5k
Arnavaz Pardiwalla
Compliance Officer & Company Secretaryno data₹10.78m0.0026%
₹ 2.1m
Rajnish Agarwal
Executive Vice President of Operationsno datano data0.0029%
₹ 2.4m
Rajesh Vasudevan
Vice President of Accounts8.08yrsno datano data
Gururaj Rao
Chief Information Officer & VP9.25yrsno datano data
Janardhanan Kannan
Senior General Manager of Legal Operationsno datano datano data
Rangachari Balaji
Senior Vice President of Marketing & Strategy12.33yrsno datano data
R. Sunder
Head of Business Solutionsno datano datano data
Khalid Khan
Senior General Manager and Head of Direct Marketing Operationsno datano data0.00054%
₹ 439.1k
Debashish Kar
Business Head of Auto Sector Loanno datano data0.0040%
₹ 3.2m

8.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 532720's management team is seasoned and experienced (8.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dhananjay Mungale
Independent Chairman & Member of the Group Executive Board4.42yrs₹3.93m0.0081%
₹ 6.6m
Ramesh Iyer
Vice-Chairman21.25yrs₹67.06m0.13%
₹ 104.7m
Vankipuram Parthasarathy
President of Mobility Services Sector6.08yrsno data0.000040%
₹ 32.5k
Milind Sarwate
Independent Director1.33yrs₹970.00kno data
Rama Bijapurkar
Independent Director12.17yrs₹2.95m0.0049%
₹ 4.0m
Chandrashekhar Bhave
Independent Director5.5yrs₹3.09mno data
Anish Shah
Deputy MD4.42yrsno datano data
Arvind Sonde
Independent Director0.67yr₹140.00kno data

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: 532720's board of directors are considered experienced (4.4 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 Financial Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mahindra & Mahindra Financial Services Limited
  • Ticker: 532720
  • Exchange: BSE
  • Founded: 1991
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹81.318b
  • Shares outstanding: 615.35m
  • Website: https://www.mahindrafinance.com

Number of Employees


Location

  • Mahindra & Mahindra Financial Services Limited
  • Mahindra Towers
  • ‘A’ Wing, 4th Floor
  • Mumbai
  • Maharashtra
  • 400018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532720BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2006
M&MFINNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2006

Biography

Mahindra & Mahindra Financial Services Limited, a non-banking financial company, provides asset finance in the rural and semi-urban areas in India. The company offers financing for auto and utility vehicle ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 12:40
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.