M&M - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Let’s dive into Mahindra & Mahindra (M&M) and unpack what makes it a compelling bet—or a cautious hold

📊 Core Financials

Profitability: ROE (18%) and ROCE (13.9%) showcase solid capital efficiency, with margins that reflect consistent operational strength.

Quarterly PAT Growth: ₹3,181 Cr. to ₹3,295 Cr. (+19.6%)—a meaningful and reliable uptick.

EPS at ₹104: Strong, supports valuation and underlines earnings capability.

Debt-to-Equity of 1.67: Leverage is notable—but manageable for a diversified conglomerate. Auto and farm equipment sectors often carry debt due to capital-intensive operations.

📈 Valuation Check

Metric Value Analysis

P/E Ratio 30.8 Fairly valued vs industry PE of 31.6

PEG Ratio 1.13 Slightly above 1—growth is priced reasonably

P/B Ratio ~5.16 Premium, but justified by strong fundamentals

Dividend Yield 0.79% Modest—focus remains on reinvestment for growth

🧠 Business Model & Strategic Edge

M&M is a key player in passenger vehicles, farm equipment (tractors), electric mobility, and IT services through subsidiaries.

Diversified revenue streams, strong rural distribution network, and EV innovation are significant strengths.

Competitive edge: Brand loyalty, rural market penetration, and product reliability.

Risks: Auto sector cyclicality, input cost inflation, and EV competition—but M&M is well-positioned to adapt.

📉 Technical Snapshot

RSI: 53.6 — Neutral zone, no overbought signals.

MACD: 32.2 — Bullish momentum building.

Price vs DMA: Current price above both 50-DMA and 200-DMA—confirming uptrend and support strength.

🛒 Entry Zone & Long-Term View

Suggested Entry: ₹3,050–₹3,120 range—close to 50-DMA and safe accumulation territory.

Holding Outlook: Highly suitable for long-term portfolios. M&M blends growth, stability, innovation, and sectoral leadership. Recommended for investors seeking exposure to auto, agritech, and emerging EV segments.

Want to take a peek at its EV roadmap or compare with Tata Motors and Ashok Leyland to see how it stacks up? I can pull up a breakdown.

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