M&M - Investment Analysis

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

Investment Rating: 4.5

📊 Fundamental Analysis

Mahindra & Mahindra (M&M) stands out as a robust long-term candidate with a strong blend of growth, profitability, and market leadership.

Metric Value Implication

Market Cap ₹3,98,028 Cr. Large-cap; high institutional confidence and stability

Stock P/E 30.8 Fairly valued vs. Industry PE of 31.6

PEG Ratio 1.13 Reasonable valuation for growth; not overvalued

ROE / ROCE 18.0% / 13.9% Strong profitability and capital efficiency

Dividend Yield 0.79% Low yield — focus is clearly on growth over income

Debt-to-Equity 1.67 Manageable for a diversified conglomerate

EPS ₹104 Strong earnings; supports premium valuation

Profit Growth (QoQ) +19.6% Excellent momentum; consistent performance

📈 Technical & Trend Analysis

Current Price: ₹3,199

DMA 50 / DMA 200: ₹3,124 / ₹2,924 — trading above both; bullish trend

RSI: 53.6 — neutral zone; no overbought pressure

MACD: +32.2 — bullish momentum

Volume: Above average — strong investor interest

✅ Is It a Good Long-Term Investment?

Yes — very strong candidate. M&M combines solid fundamentals, consistent earnings growth, and sector leadership in autos, EVs, and agri-equipment. The PEG ratio near 1.0 suggests fair valuation for its growth trajectory. ROE of 18% is particularly impressive for a large-cap industrial.

🎯 Ideal Entry Price Zone

Buy Zone: ₹3,050–₹3,150

Slight pullback to 50 DMA offers better entry

RSI and MACD suggest continued strength, but not overheated

Accumulate on dips for long-term compounding

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 3–5 years to capture full cycle of growth in EV, farm equipment, and global expansion

Exit Strategy

Partial Exit near ₹3,500–₹3,600 if valuation stretches (P/E > 35 or PEG > 1.5)

Full Exit only if ROE drops below 14% or debt rises significantly

Rebalance if dividend yield remains low and growth slows

Would you like a breakdown of M&M’s EV strategy or a comparison with Tata Motors and Maruti Suzuki to see how it stacks up in the auto space?

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