NSEI:M&MFIN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


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: M&MFIN is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: M&MFIN's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

M&MFIN

2.9%

IN Consumer Finance

-0.5%

IN Market


1 Year Return

-49.3%

M&MFIN

9.0%

IN Consumer Finance

14.8%

IN Market

Return vs Industry: M&MFIN underperformed the Indian Consumer Finance industry which returned 9% over the past year.

Return vs Market: M&MFIN underperformed the Indian Market which returned 14.8% over the past year.


Shareholder returns

M&MFINIndustryMarket
7 Day-2.3%2.9%-0.5%
30 Day3.8%1.6%3.3%
90 Day46.7%32.4%20.5%
1 Year-16.8%-49.3%13.9%9.0%16.9%14.8%
3 Year-36.7%-62.3%73.9%57.2%7.0%1.8%
5 Year46.5%-14.5%287.2%245.1%74.7%61.3%

Long-Term 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

Valuation

Is Mahindra & Mahindra Financial Services undervalued compared to its fair value and its price relative to the market?

8.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: M&MFIN (₹178.05) is trading above our estimate of fair value (₹41.44)

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


Price To Earnings Ratio

PE vs Industry: M&MFIN is good value based on its PE Ratio (8.3x) compared to the IN Consumer Finance industry average (13.4x).

PE vs Market: M&MFIN is good value based on its PE Ratio (8.3x) compared to the Indian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: M&MFIN is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: M&MFIN is overvalued based on its PB Ratio (0.9x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is Mahindra & Mahindra Financial Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

34.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: M&MFIN's forecast earnings growth (34.2% per year) is above the savings rate (7%).

Earnings vs Market: M&MFIN's earnings (34.2% per year) are forecast to grow faster than the Indian market (25.5% per year).

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

Revenue vs Market: M&MFIN's revenue (7.8% per year) is forecast to grow slower than the Indian market (12.1% per year).

High Growth Revenue: M&MFIN's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: M&MFIN's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

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

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M&MFIN has high quality earnings.

Growing Profit Margin: M&MFIN's current net profit margins (22.1%) are lower than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: M&MFIN's earnings have grown by 20% per year over the past 5 years.

Accelerating Growth: M&MFIN's earnings growth over the past year (2.4%) is below its 5-year average (20% per year).

Earnings vs Industry: M&MFIN earnings growth over the past year (2.4%) exceeded the Consumer Finance industry -5.2%.


Return on Equity

High ROE: M&MFIN's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: M&MFIN's short term assets (₹774.9B) exceed its short term liabilities (₹102.1B).

Long Term Liabilities: M&MFIN's short term assets (₹774.9B) exceed its long term liabilities (₹617.5B).


Debt to Equity History and Analysis

Debt Level: M&MFIN's debt to equity ratio (367.8%) is considered high.

Reducing Debt: M&MFIN's debt to equity ratio has reduced from 521.8% to 367.8% over the past 5 years.

Debt Coverage: M&MFIN's debt is not well covered by operating cash flow (1.5%).

Interest Coverage: Insufficient data to determine if M&MFIN'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?

1.85%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate M&MFIN'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 M&MFIN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: M&MFIN is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of M&MFIN'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?

1.0yrs

Average management tenure


CEO

Mahindra & Mahindra Financial Services has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Dhananjay Mungale
Independent Chairman & Member of the Group Executive Board4.83yrs₹3.93m0.0041%
₹ 8.9m
Arnavaz Pardiwalla
Compliance Officer & Company Secretaryno data₹10.78m0.0013%
₹ 2.9m
Vivek Karve
Chief Financial Officer0.33yrno datano data
Rajnish Agarwal
Executive Vice President of Operationsno datano datano data
Rajesh Vasudevan
Vice President of Accounts8.5yrsno datano data
Mohit Kapoor
Head of Technologyno datano datano data
Gururaj Rao
Chief Information Officer & VP9.67yrsno data0.00049%
₹ 1.1m
Vishal Agarwal
Deputy General Manager of Treasury & Investor Relationsno datano datano data
Janardhanan Kannan
Senior General Manager of Legal Operationsno datano data0.0048%
₹ 10.4m
Rangachari Balaji
Senior VP & Head of Mergers and Acquisitions (Financial Services Sector)0.17yrno datano data
R. Sunder
Head of Business Solutionsno datano datano data
Khalid Khan
Senior General Manager and Head of Direct Marketing Operationsno datano datano data

1.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: M&MFIN's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dhananjay Mungale
Independent Chairman & Member of the Group Executive Board4.83yrs₹3.93m0.0041%
₹ 8.9m
Milind Sarwate
Independent Director1.75yrs₹970.00kno data
Rama Bijapurkar
Independent Director12.58yrs₹2.95m0.0024%
₹ 5.3m
Chandrashekhar Bhave
Independent Director5.92yrs₹3.09mno data
Ramesh Iyer
Vice Chairman & MD4.83yrs₹67.06m0.064%
₹ 141.1m
Anish Shah
Non-Executive & Non-Independent Director4.83yrsno datano data
Arvind Sonde
Independent Director1.08yrs₹140.00kno data
Amit Raje
Additional Non-Executive & Non-Independent Director0.33yrno datano data

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: M&MFIN's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: M&MFIN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 100.3%.


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: M&MFIN
  • Exchange: NSEI
  • Founded: 1991
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹219.257b
  • Shares outstanding: 1.23b
  • 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 Analysis2021/01/26 12:17
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
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.