Mahindra & Mahindra Financial Services Limited

Financial Services — Credit Services · NSE

₹312.10−₹4.05 (−1.28%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

Driven by negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Mahindra & Mahindra Financial Services 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 Financial Services Limited, a non-banking financial company, engages in vehicle financing business in India. The company operates through Financing Activities and Other Reconciling Items segments.

IndustryCredit Services

SectorFinancial Services

Employees22,637

Annual revenue₹10,756 Cr

How does it make money?

Turns over ₹10,756 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit. Each of its 22,637 employees supports ₹47.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹47.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

24 analysts covering the stock expect revenue to grow about 10.2% and earnings to grow about 10.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.2%

Est. earnings growth+10.9%

Analysts24

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 +45% while net margin moved -5% 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+45%

Margin effect-5%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.39 — historically steadier than the index
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

81/ 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

13.3x

3Y Median

17.7x

40 monthly readings · mean 17.8x · range 14.3x–22.7x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 3y median of 17.7x. 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 22% below the peer median of 17.0x.

vs. its own history

Cheap

17.7x median over 40 months · -25%

vs. sector peers

Cheap

17.0x median of 4 peers · -22%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

1.18

What's Good / What's Bad

🟢 What's Going Well1

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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 25% 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 22% 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?

No clear risk case emerges from the available numbers — which is not the same as there being none.

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

1Revenue growth stays above 10% a year✓ 13.3% CAGR
Latest reported year was 36.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 9%✓ 10.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 17.7x✓ 13.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 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

5 good · 4 neutral · 2 weak

Market Cap

₹43,370 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

13.3x

Cheap

Cheap against the generic band

P/B Ratio

1.63x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹23.4

Profitable

Profitable on a per-share basis

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

4.30x

High

High leverage

Revenue Growth (YoY)

36.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

64.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.40%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹13,188 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

10.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

43.8%

Good

Healthy core-business profitability

Net Margin

30.9%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

329.4 / 358.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,394 Cr	₹8,137 Cr	₹9,065 Cr	₹10,756 Cr	+13.3%
PAT (Net Profit)	₹2,072 Cr	₹1,933 Cr	₹2,262 Cr	₹2,855 Cr	+11.3%
EPS	₹16.34	₹15.23	₹17.77	₹20.86	+8.5%
ROE	11.2%	9.7%	10.5%	10.7%	—
Total Debt	₹76,451 Cr	₹93,177 Cr	₹1.08 L Cr	₹1.15 L Cr	+14.5%
Free Cash Flow	-₹17,809 Cr	-₹18,772 Cr	-₹16,044 Cr	-₹13,188 Cr	—

🟢 Revenue has grown at 13.3% a year over 3 years.

🟢 PAT (Net Profit) has grown at 11.3% a year over 3 years.

🟢 EPS has grown at 8.5% a year over 3 years.

🟡 ROE has held roughly flat at 10.7% over 3 years.

🔴 Total Debt has grown at 14.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.59 L Cr

Total Liabilities

₹1.32 L Cr

Cash & Equivalents

₹5,626 Cr

Operating Cash Flow

-₹12,772 Cr

Capex

-₹416 Cr

Shareholding (proxy)

Institutional Holding

37.6%

Insider Holding

53.6%

Corporate Actions

Next Earnings

21 Oct 2026

Dividend Rate

₹7.5

Ex-Dividend Date

13 Jul 2026

Analyst Consensus

Recommendations

26 Buy · 7 Hold · 1 Sell

Target Price (Mean)

₹395.21

+26.6% vs CMP

Target Range

₹283 – ₹450

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

3 mixed3 general

M&MFIN Stock Price and Chart — NSE:M&MFIN

TradingView, 19 Sept

Mahindra & Mahindra Financial Services board approves raising funds up to ₹2,000 crore via NCDs; shares fall 16% YTD

Upstox, 24 SeptFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Mahindra & Mahindra Financial Services (M&MFIN) Share Price Fall Streak: Second Straight Session Decline

Univest, 08 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.

Here's Why We Think Mahindra & Mahindra Financial Services (NSE:M&MFIN) Is Well Worth Watching

Simply Wall Street, 09 Aug

Mahindra And Mahindra Financial Services (NSEI:M&MFIN) Stock Sees Fair Value Lift On Margin Revisions

Yahoo Finance, 22 Aug

M&M Finance shares jump 17% in two days post-Q1 results; brokerages see up to 29% upside

Moneycontrol.com, 22 JulPrice 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.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

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.

All 3 tripwires holding · see Key things to watch ↑