M&M - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | M&M | Market Cap | 3,85,183 Cr. | Current Price | 3,098 ₹ | High / Low | 3,840 ₹ |
| Stock P/E | 25.1 | Book Value | 535 ₹ | Dividend Yield | 0.82 % | ROCE | 27.0 % |
| ROE | 20.8 % | Face Value | 5.00 ₹ | DMA 50 | 3,218 ₹ | DMA 200 | 3,324 ₹ |
| Chg in FII Hold | -1.26 % | Chg in DII Hold | 0.98 % | PAT Qtr | 4,288 Cr. | PAT Prev Qtr | 4,559 Cr. |
| RSI | 46.5 | MACD | -21.7 | Volume | 35,64,479 | Avg Vol 1Wk | 30,37,470 |
| Low price | 2,896 ₹ | High price | 3,840 ₹ | PEG Ratio | 0.73 | Debt to equity | 0.02 |
| 52w Index | 21.4 % | Qtr Profit Var | 41.6 % | EPS | 115 ₹ | Industry PE | 27.3 |
📊 Mahindra & Mahindra (M&M) demonstrates strong fundamentals with a market cap of ₹3,85,183 Cr. and current price of ₹3,098, trading below its 50 DMA (₹3,218) and 200 DMA (₹3,324), indicating near-term weakness. Efficiency metrics are robust — ROE at 20.8% and ROCE at 27.0% — supported by EPS of ₹115. Valuation remains fair with a P/E of 25.1 compared to the industry average of 27.3, while PEG ratio at 0.73 suggests reasonable growth-adjusted valuation. Debt-to-equity at 0.02 highlights a virtually debt-free balance sheet. Quarterly PAT declined slightly (₹4,559 Cr → ₹4,288 Cr.), but overall profit variation (+41.6%) remains strong. Institutional flows are mixed, with FIIs reducing (-1.26%) and DIIs increasing (+0.98%).
💡 Entry Zone: ₹3,000–₹3,080 (near support levels)
📈 Long-Term Holding: Attractive for long-term investors given strong fundamentals, low debt, and fair valuation. Accumulation on dips below ₹3,100 offers favorable risk-reward.
✅ Positive
- Strong ROE (20.8%) and ROCE (27.0%) highlight efficiency
- Fair valuation (P/E 25.1 vs industry 27.3)
- PEG ratio (0.73) indicates reasonable growth-adjusted valuation
- Debt-to-equity ratio (0.02) reflects strong financial stability
- DII holdings increased (+0.98%), showing domestic confidence
⚠️ Limitation
- Quarterly PAT decline (₹4,559 Cr → ₹4,288 Cr.)
- FIIs reduced holdings (-1.26%), showing weaker foreign interest
- Stock trading below DMA 50 and DMA 200, indicating technical weakness
- RSI at 46.5 suggests neutral momentum
📉 Company Negative News
- Sequential profit decline in recent quarter
- Reduced foreign institutional participation
📈 Company Positive News
- Strong EPS base (₹115) supports earnings visibility
- DII support increased (+0.98%)
- Overall profit variation (+41.6%) remains strong
🏭 Industry
- Automobile sector trades at P/E 27.3, making M&M fairly valued
- Sector outlook supported by strong demand in SUVs, tractors, and EV initiatives
🔎 Conclusion
M&M is fundamentally strong with robust profitability, low debt, and fair valuation. Entry near ₹3,000–₹3,080 offers a favorable accumulation zone. Long-term investors can hold confidently, as fundamentals and sector positioning support sustained growth, though near-term weakness may persist due to technical resistance and FII outflows.