Mahindra & Mahindra Financial Services Limited

NSEI:M&MFIN Stock Report

Market Cap: ₹320.8b

Mahindra & Mahindra Financial Services Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: M&MFIN (₹256.25) is trading above our estimate of fair value (₹134.24)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for M&MFIN. This is calculated by dividing M&MFIN's market cap by their current earnings.
What is M&MFIN's PE Ratio?
PE Ratio14.5x
Earnings₹21.80b
Market Cap₹320.79b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for M&MFIN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17x
CHOLAHLDNG Cholamandalam Financial Holdings
13.8xn/a₹291.0b
SUNDARMFIN Sundaram Finance
29.1x13.3%₹454.1b
FIVESTAR Five-Star Business Finance
19.3x16.0%₹186.1b
531213 Manappuram Finance
5.6x11.8%₹131.1b
M&MFIN Mahindra & Mahindra Financial Services
14.5x17.0%₹320.8b

Price-To-Earnings vs Peers: M&MFIN is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (17x).

Price to Earnings Ratio vs Industry

How does M&MFIN's PE Ratio compare vs other companies in the IN Consumer Finance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
523384 Maha Rashtra Apex
0.7xn/aUS$26.50m
No more companies available in this PE range
M&MFIN 14.5xIndustry Avg. 21.1xNo. of Companies9PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: M&MFIN is good value based on its Price-To-Earnings Ratio (14.5x) compared to the Indian Consumer Finance industry average (21.1x).

Price to Earnings Ratio vs Fair Ratio

What is M&MFIN'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&MFIN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio21.7x

Price-To-Earnings vs Fair Ratio: M&MFIN is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.7x).

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&MFIN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹256.25
₹303.50
+18.4%
10.8%₹360.00₹235.00n/a34
Nov ’25₹273.40
₹304.09
+11.2%
11.0%₹360.00₹235.00n/a34
Oct ’25₹330.10
₹307.88
-6.7%
12.0%₹380.00₹229.00n/a34
Sep ’25₹314.35
₹302.94
-3.6%
11.7%₹350.00₹229.00n/a35
Aug ’25₹306.45
₹301.71
-1.5%
11.7%₹350.00₹229.00n/a35
Jul ’25₹306.60
₹294.32
-4.0%
12.5%₹355.00₹233.00n/a34
Jun ’25₹267.60
₹293.29
+9.6%
11.6%₹352.00₹233.00n/a34
May ’25₹261.15
₹303.84
+16.3%
12.2%₹360.00₹240.00n/a32
Apr ’25₹286.95
₹304.00
+5.9%
11.4%₹360.00₹235.00n/a33
Mar ’25₹287.75
₹302.79
+5.2%
11.7%₹360.00₹235.00n/a33
Feb ’25₹284.55
₹302.72
+6.4%
11.9%₹360.00₹235.00n/a32
Jan ’25₹275.20
₹298.88
+8.6%
12.7%₹360.00₹218.00n/a33
Dec ’24₹273.65
₹298.32
+9.0%
12.6%₹360.00₹218.00n/a34
Nov ’24₹246.90
₹298.26
+20.8%
12.4%₹360.00₹218.00₹273.4035
Oct ’24₹301.35
₹318.76
+5.8%
11.0%₹368.00₹220.00₹330.1034
Sep ’24₹299.15
₹316.61
+5.8%
10.9%₹368.00₹220.00₹314.3533
Aug ’24₹295.85
₹317.13
+7.2%
11.2%₹370.00₹220.00₹306.4532
Jul ’24₹336.45
₹294.83
-12.4%
13.1%₹360.00₹215.00₹306.6029
Jun ’24₹294.05
₹288.83
-1.8%
12.2%₹350.00₹215.00₹267.6030
May ’24₹259.00
₹279.31
+7.8%
13.0%₹350.00₹210.00₹261.1529
Apr ’24₹231.65
₹268.45
+15.9%
16.7%₹350.00₹166.00₹286.9529
Mar ’24₹255.10
₹263.21
+3.2%
16.4%₹350.00₹166.00₹287.7528
Feb ’24₹233.85
₹233.72
-0.05%
15.7%₹315.00₹160.00₹284.5529
Jan ’24₹234.60
₹229.34
-2.2%
15.0%₹315.00₹160.00₹275.2029
Dec ’23₹220.30
₹227.61
+3.3%
14.9%₹315.00₹160.00₹273.6528
Nov ’23₹198.15
₹210.50
+6.2%
14.1%₹260.00₹150.00₹246.9028

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

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