M&M - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | M&M | Market Cap | 3,83,138 Cr. | Current Price | 3,082 ₹ | High / Low | 3,840 ₹ |
| Stock P/E | 23.6 | Book Value | 598 ₹ | Dividend Yield | 0.82 % | ROCE | 31.1 % |
| ROE | 23.9 % | Face Value | 5.00 ₹ | DMA 50 | 3,194 ₹ | DMA 200 | 3,303 ₹ |
| Chg in FII Hold | -1.26 % | Chg in DII Hold | 0.98 % | PAT Qtr | 3,811 Cr. | PAT Prev Qtr | 4,288 Cr. |
| RSI | 44.3 | MACD | -19.6 | Volume | 24,97,145 | Avg Vol 1Wk | 24,49,555 |
| Low price | 2,896 ₹ | High price | 3,840 ₹ | PEG Ratio | 0.83 | Debt to equity | 0.02 |
| 52w Index | 19.7 % | Qtr Profit Var | 29.0 % | EPS | 126 ₹ | Industry PE | 27.7 |
📊 Core Financials: Mahindra & Mahindra reported quarterly PAT of ₹3,811 Cr (down from ₹4,288 Cr), showing a slight decline but strong profitability overall. ROE at 23.9% and ROCE at 31.1% highlight excellent efficiency. Debt-to-equity ratio of 0.02 indicates a nearly debt-free balance sheet. EPS at ₹126 reflects robust earnings power, supported by consistent cash flows.
💹 Valuation Indicators: Stock P/E of 23.6 is slightly below the industry average (27.7), suggesting fair valuation. Book value at ₹598 vs CMP ₹3,082 shows a premium valuation. PEG ratio of 0.83 indicates healthy earnings growth relative to price. Intrinsic value appears supportive of long-term upside, making the stock attractive for investors.
🚗 Business Model & Advantage: M&M operates in automotive, farm equipment, and financial services, with strong diversification. Competitive advantage lies in leadership in SUVs and tractors, global presence, and innovation in EVs. Efficiency metrics and brand strength reinforce overall health.
📈 Entry Zone & Holding Guidance: The stock trades below DMA 50 (₹3,194) and DMA 200 (₹3,303), showing weakness. RSI at 44.3 indicates mildly oversold conditions. A better entry zone would be closer to ₹2,950–₹3,050. Long-term holding is recommended given strong fundamentals, diversified business, and industry demand.
Positive
- ✅ Strong ROE (23.9%) and ROCE (31.1%) efficiency
- ✅ EPS at ₹126, reflecting robust earnings base
- ✅ Debt-to-equity ratio at 0.02, nearly debt-free
- ✅ DII holding increased by 0.98%, showing domestic institutional confidence
Limitation
- ⚠️ Quarterly PAT decline (₹4,288 Cr → ₹3,811 Cr)
- ⚠️ CMP trades at a premium to book value (₹598 vs ₹3,082)
- ⚠️ Dividend yield at 0.82%, modest income support
Company Negative News
- 📉 FII holding decreased by 1.26%, showing reduced foreign investor confidence
Company Positive News
- 📈 Quarterly profit variation of 29% year-on-year indicates strong operational momentum
- 📈 Continued leadership in SUVs and tractors supports long-term growth
Industry
- 🌐 Auto industry PE at 27.7, reflecting moderate valuations
- 🌐 Long-term demand supported by EV adoption, rural growth, and infrastructure expansion
Conclusion
🔎 Mahindra & Mahindra is fundamentally strong with excellent efficiency, diversified operations, and fair valuation relative to peers. Entry near ₹2,950–₹3,050 offers better risk-reward. Long-term investors can hold confidently, supported by strong fundamentals, industry leadership, and growth in EV and farm equipment segments.
For deeper insights, you could explore a peer comparison or a valuation analysis to assess its position against competitors and intrinsic value.