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Mahindra & Mahindra Ltd.
(M&M)
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Rating:58Neutral
Price Target:
₹3,532.00
▲(11.74% Upside)
Action:Reiterated
Date:08/03/26
The score is held back primarily by weaker financial quality—especially inconsistent and recently volatile cash generation alongside meaningful leverage—despite solid profit improvements. The latest earnings call is a notable positive with strong growth, high ROE, and clear execution/capacity plans, but near-term margin and commodity risks remain. Valuation is moderately supportive (P/E ~20.6, ~2.77% yield), while technical positioning cannot be assessed due to missing indicators.
Positive Factors
Improved profitability & ROE
Sustained double‑digit consolidated revenue and PAT growth with ROE at 23% indicates stronger capital efficiency and profit conversion across cycles. This supports reinvestment, capacity spend and shareholder returns, making the earnings base more durable over the next 2–6 months.
Negative Factors
High leverage
Meaningful leverage in a cyclical auto and farm equipment business reduces financial flexibility and raises refinancing and interest‑rate sensitivity. If industry demand softens or commodity shocks recur, elevated debt may constrain capex, dividends or strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability & ROE
Sustained double‑digit consolidated revenue and PAT growth with ROE at 23% indicates stronger capital efficiency and profit conversion across cycles. This supports reinvestment, capacity spend and shareholder returns, making the earnings base more durable over the next 2–6 months.
Read all positive factors
Mahindra & Mahindra Ltd. (M&M) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.35T
Dividend Yield2.68%
Average Volume (3M)107.78K
Price to Earnings (P/E)21.2
Beta (1Y)1.65
Revenue Growth25.93%
EPS Growth34.37%
CountryIN
Employees26,765
SectorGeneral
Sector StrengthN/A
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)182.62
Shares Outstanding1,243,528,800
10 Day Avg. Volume105,861
30 Day Avg. Volume107,779
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)8.78
Price to Sales (P/S)2.00
P/FCF Ratio-657.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹4,120.00Price Target Upside30.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)138.37
Revenue Forecast (FY)₹1.67T
Mahindra & Mahindra Ltd. Business Overview & Revenue Model
Company Description
Mahindra & Mahindra Limited, an Indian company founded in 1945 and headquartered in Mumbai, operates globally, delivering a diverse portfolio of mobility products and agricultural solutions. Its extensive operations are categorized into segments s...
How the Company Makes Money
M&M primarily makes money by selling manufactured products and related services across its operating segments. The largest revenue drivers are typically (1) Automotive: revenue from the sale of vehicles (including SUVs/utility vehicles, pickups an...
Mahindra & Mahindra Ltd. Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a broadly positive performance across the group with strong consolidated revenue (+28%) and PAT (+34%), a high ROE (23%), clear turnarounds at Mahindra Finance and Tech Mahindra, and material progress from growth gems and real estate. These positives were tempered by notable near-term challenges — commodity inflation, a hedging MTM loss, a farm impairment, supply/production disruptions and an ongoing drag from certain logistics businesses. Management outlined concrete mitigation actions (pricing, operating levers, capacity expansion, AI-driven efficiency) and emphasized execution strength, leaving the tone cautiously optimistic.Positive Updates
Consolidated Revenue and Profit Growth
Consolidated revenue grew ~28% YoY and consolidated PAT grew ~34% YoY; EPS up ~34% to INR 48.
Negative Updates
Commodity Inflation Pressure
Significant commodity headwinds: Auto faced ~400–500 bps margin pressure and Farm ~300+ bps; steel up ~24% and rubber up ~30% (large YoY increases affecting Farm margins and non-hedgeable cost exposure).
Read all updates
Q1-2027 Updates
Positive
Negative
Consolidated Revenue and Profit Growth
Consolidated revenue grew ~28% YoY and consolidated PAT grew ~34% YoY; EPS up ~34% to INR 48.
Read all positive updates
Company Guidance
Management framed a cautiously optimistic outlook, backing it with concrete targets and metrics: consolidated revenue rose 28% and PAT 34% (EPS INR 48, +34%) with ROE at 23% (vs. 18% target); Auto revenue +32% (SUV volumes +15%, EV penetration 12% vs industry 9%), core Auto PBIT ~8.9% and EV PBIT ~5.3% (EV PBIT INR 288 crore), Auto PAT +21%; capacity roadmap ramps monthly capacity from ~64.5k today to ~82k by year‑end, ~92k after Chakan Phase‑2 and to ~250k/month with Nagpur phases (first 20k/month H1 CY2029) to ~2x capacity over the coming years. Farm volumes +18% (exports +15%), core tractor margin ~19.2% and farm consolidated margin 14.2% (PBIT +9% after impairments, PAT +15%); Mahindra Finance profits +78% with NIMs recovering to ~7.3%, ROA ~2.4% and GS2+GS3 <10% (7 quarters), wheels growth ~20% and non‑wheels +79%; Tech Mahindra +28% with EBIT margin 14.4% (15% FY27 target) and free cash flow +94%. Growth‑gems: profits 3x; Real Estate added INR 5,600 crore GDV (+60%) and presales INR 925 crore (2x) with GDV pipeline INR 50,000 crore; Logistics returned to profit (INR 14 crore at group level, INR 25 crore at business level); Aerostructures wins $1.2bn (USD 600m last year). Management also cited AI/tech KPIs (65% loan files via Samur.AI, 91k AI‑driven test‑drive conversions, 2,600 AI workshop assistants, 5 lakh+ AI service requests, 19 proprietary models, 50 deployed AI experts) and warned commodity risk remains (steel +24%, rubber ~+30%), noting pricing actions (average ~1.5% earlier plus ~2.7% in July) and expecting Q1 margins to be the low point with improvement thereafter unless commodities worsen.Mahindra & Mahindra Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.95T | 1.56T | 1.36T | 1.19T | 884.40B |
| Gross Profit | 472.71B | 592.67B | 516.01B | 443.95B | 363.06B |
| EBITDA | 341.99B | 334.92B | 278.48B | 240.88B | 177.79B |
| Net Income | 170.99B | 129.29B | 112.69B | 102.81B | 65.77B |
Balance Sheet | |||||
| Total Assets | 1.49T | 2.78T | 2.36T | 2.06T | 1.74T |
| Cash, Cash Equivalents and Short-Term Investments | 114.27B | 418.72B | 262.23B | 264.58B | 226.93B |
| Total Debt | 477.25B | 1.30T | 1.07T | 922.47B | 776.05B |
| Total Liabilities | 1.04T | 1.88T | 1.59T | 1.39T | 1.17T |
| Stockholders Equity | 445.70B | 770.38B | 661.91B | 563.66B | 471.23B |
Cash Flow | |||||
| Free Cash Flow | 45.55B | -72.16B | -155.76B | -133.79B | 32.08B |
| Operating Cash Flow | 141.60B | 31.75B | -56.30B | -70.74B | 92.48B |
| Investing Cash Flow | -181.09B | -186.26B | -55.98B | -85.47B | -32.26B |
| Financing Cash Flow | 32.90B | 158.34B | 122.81B | 159.46B | -58.83B |
Mahindra & Mahindra Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹243.89B | 19.47 | ― | 0.23% | 8.44% | 45.33% | |
72 Outperform | ₹4.42T | 30.79 | ― | 1.00% | 26.61% | -1.37% | |
69 Neutral | ₹1.79T | 36.12 | ― | 1.07% | 3.55% | -10.31% | |
64 Neutral | ₹1.27T | -578.33 | ― | 1.00% | -20.40% | 258.67% | |
62 Neutral | ₹80.38B | 51.36 | ― | 0.47% | 18.04% | 9.96% | |
58 Neutral | ₹4.35T | 21.18 | ― | 2.97% | 25.93% | 34.37% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:M&M
Mahindra & Mahindra Ltd.
3,501.40
350.31
11.12%
IN:FORCEMOT
Force Motors Limited
18,510.00
16.81
0.09%
IN:HYUNDAI
Hyundai Motor India Limited
2,197.00
65.52
3.07%
IN:MARUTI
Maruti Suzuki India Limited
14,050.00
1,592.07
12.78%
IN:SMLMAH
Sml Isuzu Limited
5,554.25
1,719.32
44.83%
IN:TMPV
Tata Motors Passenger Vehicles
345.00
20.59
6.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.