BSE:532720

Stock Analysis Report

Mahindra & Mahindra Financial Services

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer and fair value.

Risks

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

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


Market Performance


7 Day Return

-2.5%

BSE:532720

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-32.8%

BSE:532720

-3.2%

IN Consumer Finance

-14.7%

IN Market

532720 underperformed the Consumer Finance industry which returned -3.1% over the past year.

532720 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

532720IndustryMarket
7 Day-2.5%-3.6%-2.1%
30 Day2.4%1.9%-3.9%
90 Day-23.9%-10.2%-10.1%
1 Year-31.7%-32.8%-2.5%-3.2%-12.9%-14.7%
3 Year-2.8%-5.9%59.3%56.0%17.7%11.5%
5 Year18.1%11.4%233.9%218.2%35.4%22.5%

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

11.85x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

Mahindra & Mahindra Financial Services'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 Financial Services is good value based on earnings compared to the IN Consumer Finance industry average.

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


Price Based on Expected Growth

Mahindra & Mahindra Financial Services is good value based on expected growth next year.


Price Based on Value of Assets

Mahindra & Mahindra Financial Services is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Mahindra & Mahindra Financial Services expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mahindra & Mahindra Financial Services's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).

Mahindra & Mahindra Financial Services's earnings are expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).

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

Mahindra & Mahindra Financial Services's earnings growth is positive but not above the India market average.

Mahindra & Mahindra Financial Services's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

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

13.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mahindra & Mahindra Financial Services's year on year earnings growth rate has been positive over the past 5 years.

Mahindra & Mahindra Financial Services's 1-year earnings growth is less than its 5-year average (12.2% vs 13.3%)

Mahindra & Mahindra Financial Services's earnings growth has not exceeded the IN Consumer Finance industry average in the past year (12.2% vs 15%).


Return on Equity

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


Return on Assets

Mahindra & Mahindra Financial Services used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Mahindra & Mahindra Financial Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

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


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Mahindra & Mahindra Financial Services's level of debt (469.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (489.4% vs 469.2% today).

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

Unable to confirm if the interest payments on Mahindra & Mahindra Financial Services's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

1.92%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Mahindra & Mahindra Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Mahindra & Mahindra Financial Services's dividend is below the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Ramesh Iyer (61yo)

20.3yrs

Tenure

₹72,880,000

Compensation

Mr. Ramesh Iyer has been Managing Director of Mahindra & Mahindra Financial Services Limited since April 2001. Mr. Iyer serves as a Member of Group Executive Board and President of Financial Services Secto ...


CEO Compensation Analysis

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

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


Management Age and Tenure

8.3yrs

Average Tenure

54.5yo

Average Age

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


Board Age and Tenure

3.8yrs

Average Tenure

60.5yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Sell₹2,435,15102 Jan 19
Rakesh Rathod
EntityIndividual
Shares5,135
Max Price₹477.06
Sell₹4,777,30029 Aug 18
Ramesh Iyer
EntityIndividual
Role
Chief Executive Officer
Vice-Chairman & MD
Shares10,000
Max Price₹477.73

Ownership Breakdown


Management Team

  • V. Ravi (60yo)

    CFO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: ₹29.24m
  • Ramesh Iyer (61yo)

    Vice-Chairman & MD

    • Tenure: 20.3yrs
    • Compensation: ₹72.88m
  • Rajesh Vasudevan (49yo)

    Vice President of Accounts

    • Tenure: 7.1yrs
  • Rajnish Agarwal (54yo)

    Vice President of Operations

    • Tenure: 0.0yrs
  • Arnavaz Pardiwalla

    Compliance Officer & Company Secretary

    • Tenure: 0.0yrs
    • Compensation: ₹8.39m
  • Vinay Deshpande

    Chief People Officer

    • Tenure: 0.0yrs
  • Rangachari Balaji

    Vice President of Marketing & Strategy

    • Tenure: 11.3yrs
  • Gururaj Rao

    Chief Information Officer & VP

    • Tenure: 8.3yrs
  • R. Sunder (51yo)

    Head of Business Solutions

    • Tenure: 0.0yrs
  • Janardhanan Kannan (55yo)

    Senior General Manager of Legal Operations

    • Tenure: 0.0yrs

Board Members

  • Milind Sarwate (60yo)

    Independent Director

    • Tenure: 0.3yrs
  • Rama Bijapurkar (62yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: ₹2.57m
  • Chandrashekhar Bhave (68yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: ₹2.81m
  • Dhananjay Mungale (66yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: ₹3.60m
  • V. Ravi (60yo)

    CFO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: ₹29.24m
  • Ramesh Iyer (61yo)

    Vice-Chairman & MD

    • Tenure: 20.3yrs
    • Compensation: ₹72.88m
  • Partha Parthasarathy (57yo)

    Non-Executive & Non-Independent Director

    • Tenure: 5.1yrs
  • Anish Shah (50yo)

    Director

    • Tenure: 3.4yrs

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: ₹191.811b
  • Shares outstanding: 614.88m
  • Website: https://www.mahindrafinance.com

Number of Employees


Location

  • Mahindra & Mahindra Financial Services Limited
  • Mahindra Towers
  • 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 and other financial products and services in the rural and semi-urban areas in India. The company off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:44
End of Day Share Price2019/08/23 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.