Mahindra & Mahindra Limited

Consumer Cyclical — Auto Manufacturers · NSE

₹2,920.90+₹59.20 (+2.07%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by moderate debt load.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Mahindra & Mahindra Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mahindra & Mahindra Limited provides mobility products and farm solutions in India and internationally. It operates through Automotive; Farm Equipment; Auto Investments; Farm Investments; and Investments in Industrial Businesses and Consumer Services segments.

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees26,765

Annual revenue₹1.93 L Cr

How does it make money?

Turns over ₹1.93 L Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 26,765 employees supports ₹7.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, BAJAJ AUTO LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE30.3%

What is the outlook?

34 analysts covering the stock expect revenue to grow about 10.4% and earnings to grow about 14.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.4%

Est. earnings growth+14.9%

Analysts34

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +62% while net margin moved +3% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+62%

Margin effect+3%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.25x is on the heavy side
• Current ratio of 1.27 covers short-term liabilities, without much slack
✓ Free cash flow is positive — the business funds its own capex
• Interest cover of 3.7x is adequate

Quality vs. Valuation

Company Quality

74/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

17.8x

3Y Median

27.3x

40 monthly readings · mean 25.9x · range 15.9x–32.7x

Sector Median

25.2x

median of 3 sector peers

🟢Current valuation is approximately 35% below its 3y median of 27.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 29% below the peer median of 25.2x.

vs. its own history

Cheap

27.3x median over 40 months · -35%

vs. sector peers

Cheap

25.2x median of 3 peers · -29%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.6x

PEG

0.96

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 18.8% to 21.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 14.6% to 17.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 45% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 18.8% to 21.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 35% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 29% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.5% CAGR
Latest reported year was 27.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 21.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹2,052 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹3.51 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

17.8x

Fair

Fairly valued against the generic band

P/B Ratio

3.51x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹164.27

Profitable

Profitable on a per-share basis

ROE

18.4%

Strong

Strong capital efficiency

ROCE

17.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.25x

Moderate

Moderate leverage

Revenue Growth (YoY)

27.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

33.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹2,052 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.9x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

17.0%

Good

Healthy core-business profitability

Net Margin

8.6%

Average

Average bottom-line conversion

Current Ratio

1.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2913.5 / 3146.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1.19 L Cr	₹1.36 L Cr	₹1.56 L Cr	₹1.93 L Cr	+17.5%
EBITDA	₹22,350 Cr	₹26,270 Cr	₹33,673 Cr	₹41,349 Cr	+22.8%
EBITDA Margin	18.8%	19.3%	21.6%	21.4%	—
PAT (Net Profit)	₹10,282 Cr	₹11,269 Cr	₹12,929 Cr	₹17,099 Cr	+18.5%
EPS	₹91.96	₹100.7	₹115.06	₹152.18	+18.3%
ROE	18.2%	17.0%	16.8%	18.4%	—
ROCE	14.6%	14.5%	14.9%	17.1%	—
Total Debt	₹92,247 Cr	₹1.07 L Cr	₹1.25 L Cr	₹1.34 L Cr	+13.2%
Free Cash Flow	-₹13,379 Cr	-₹15,576 Cr	-₹7,216 Cr	₹2,052 Cr	—

🟢 Revenue has grown at 17.5% a year over 3 years.

🟢 EBITDA has grown at 22.8% a year over 3 years.

🟢 EBITDA Margin has risen from 18.8% to 21.4% over 3 years (+2.6 pts).

🟢 PAT (Net Profit) has grown at 18.5% a year over 3 years.

🟢 EPS has grown at 18.3% a year over 3 years.

🟡 ROE has held roughly flat at 18.4% over 3 years.

🟢 ROCE has risen from 14.6% to 17.1% over 3 years (+2.5 pts).

🔴 Total Debt has grown at 13.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹13,379 Cr to ₹2,052 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3.18 L Cr

Total Liabilities

₹2.08 L Cr

Cash & Equivalents

₹4,292 Cr

Operating Cash Flow

₹11,657 Cr

Capex

-₹9,605 Cr

Shareholding (proxy)

Institutional Holding

53.4%

Insider Holding

25.2%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹33

Ex-Dividend Date

03 Jul 2026

Analyst Consensus

Recommendations

34 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹4,115.54

+40.9% vs CMP

Target Range

₹3,508 – ₹4,875

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TATA MOTORS LIMITED	37.1x	32.8%
TATA MOTORS PASS VEH LTD	—	-3.0%
BAJAJ AUTO LIMITED	24.7x	30.3%

Recent News

6 mixed

Mahindra & Mahindra Ltd. Share Price Rise Streak, 4.08%

Univest, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Tech Mahindra shares see sharpest fall among IT peers: What is behind the slide?

Upstox, 12 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Tech Mahindra Shares Surge 7% After Strong Q2 Results; Buy, Sell

APAC Media, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

M&M Share Price Fall: Here's why Kotak sees a turnaround despite SUV, tractor concerns - CNBC TV18

LinkedIn, 14 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

M&M Shares In Focus As Kotak Neo Calls Correction A Buying Opportunity; Check Target Price

NDTV Profit, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Tech Mahindra shares fall up to 4% ahead of Q2 results this week: Here's why

Moneycontrol.com, 12 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation · Risk

MiddlingFinancial Health

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑