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Mahindra & Mahindra Ltd. (IN:M&M)
:M&M
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Mahindra & Mahindra Ltd. (M&M) AI Stock Analysis

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IN:M&M

Mahindra & Mahindra Ltd.

(M&M)

Rating:82Outperform
Price Target:
₹3,666.00
▲(14.63% Upside)
Mahindra & Mahindra Ltd.'s overall stock score is driven by strong financial performance and highly positive earnings call sentiment. The company's robust revenue growth and profitability, combined with strategic market share gains, contribute significantly to the optimistic score. While technical analysis data was lacking, and valuation indicates potential overvaluation concerns, the high dividend yield offers support. Key risks include debt levels and cash flow challenges, but these are mitigated by operational strengths and strategic initiatives.

Mahindra & Mahindra Ltd. (M&M) vs. iShares MSCI India ETF (INDA)

Mahindra & Mahindra Ltd. Business Overview & Revenue Model

Company DescriptionMahindra & Mahindra Ltd. (M&M) is a leading Indian multinational conglomerate headquartered in Mumbai, India. It is a part of the Mahindra Group and operates across various sectors, including automotive, agribusiness, aerospace, financial services, information technology, and real estate. The company is renowned for its automotive division, which manufactures a wide range of vehicles, including SUVs, commercial vehicles, and electric vehicles. M&M also plays a significant role in the agricultural sector with its farm equipment division, producing tractors and other agricultural machinery. Through its diverse portfolio, Mahindra & Mahindra serves both domestic and international markets, establishing itself as a key player in various industries.
How the Company Makes MoneyMahindra & Mahindra Ltd. generates revenue through multiple streams, primarily from its automotive and farm equipment divisions. The automotive segment is the largest contributor, with income derived from the sale of passenger vehicles, commercial vehicles, and spare parts, both in India and abroad. The company's farm equipment division is another crucial revenue source, focusing on the sale of tractors and related machinery. Additionally, M&M's financial services arm provides loans, insurance, and leasing options, which add to its earnings. The company's strategic partnerships and joint ventures, both locally and internationally, help expand its market reach and enhance its product offerings. M&M also benefits from its investments in technology and innovation, which drive efficiency and open new revenue opportunities across its diverse business verticals.

Mahindra & Mahindra Ltd. Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in several key areas, including significant profit growth, market share gains, and improvements in asset quality and EBIT margins. However, challenges persist with international subsidiaries, real estate presales declines, and commodity price concerns. The overall sentiment is balanced with notable achievements and some areas of concern.
Q1-2026 Updates
Positive Updates
Strong Consolidated Profit Growth
Consolidated profit after tax is up 24%, indicating a strong financial performance across the group.
Record Market Share in Farm Equipment
Tractor volumes increased by 10%, achieving the highest-ever market share at 45.2%, a gain of 50 basis points.
Significant Growth in Auto Sector
Auto sector profit after tax increased by 32%, with SUV volumes up 22% and revenue market share at 27.3%, up 570 basis points.
Tech Mahindra's EBIT Margin Recovery
Tech Mahindra's EBIT margin recovery is on track, reaching 11.1% this quarter with a target of 15% for F'27.
Mahindra Finance's Asset Quality Focus
Mahindra Finance's assets under management grew by 15%, with asset quality well within thresholds at 3.8%.
Growth in Mahindra Logistics
Mahindra Logistics saw 14% growth, with multiple deal closures and a stronger momentum for the business.
Strong Cash Generation
Despite two rights issues and close to INR 2,500 crores infused into subsidiaries, cash balance grew quarter-over-quarter.
Negative Updates
International Subsidiaries Drag
International subsidiaries experienced a drag on performance due to specific write-downs, resulting in a lower profit after tax growth of 7% year-over-year for the same quarter.
Decline in Real Estate Presales
Real estate experienced a 56% decline in presales, although there was a 4x increase in PAT driven by one-offs.
Impact of Sampo Impairment
Farm sector's PBIT growth was impacted by impairment in the Sampo business, resulting in a 6% year-over-year growth.
Commodity Price Concerns
Rising steel prices by about 6% over the last quarter pose a potential headwind for future quarters.
Urban Sentiment Weakness
Urban sentiment remains weak, affecting the auto business despite stronger rural sentiment.
Company Guidance
During the call, Mahindra Group reported strong financial performance in the first quarter of fiscal year 2026, with consolidated profit after tax increasing by 24% and return on equity at 20.6%. The company achieved a 22% growth in revenue, driven by significant market share expansion in the Auto and Farm sectors. SUV volumes rose by 22%, raising the revenue market share to 27.3%, while tractor volumes increased by 10%, enhancing market share to 45.2%. The Auto business maintained a 10% margin, and the Farm sector achieved a PBIT margin of 19.8%. Tech Mahindra saw an EBIT margin recovery to 11.1%, targeting 15% by fiscal year 2027. Mahindra Finance reported a 15% increase in assets under management and maintained asset quality at 3.8%. Additionally, Mahindra Lifespaces acquired INR 3,500 crores in gross development value, and Susten commissioned 70 megawatts. Despite challenges in international subsidiaries and specific write-downs, the group's consolidated profit after tax reached INR 4,083 crores.

Mahindra & Mahindra Ltd. Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.61T1.37T1.20T892.57B732.65B
Gross Profit656.49B546.65B443.95B228.91B362.65B
EBITDA342.36B247.50B240.88B177.79B147.05B
Net Income129.29B112.69B102.81B65.77B18.12B
Balance Sheet
Total Assets2.78T2.36T2.06T1.74T1.66T
Cash, Cash Equivalents and Short-Term Investments268.71B262.23B264.58B226.93B234.32B
Total Debt1.25T1.07T922.47B776.05B806.25B
Total Liabilities1.88T1.59T1.39T1.17T1.16T
Stockholders Equity770.38B661.91B563.66B471.23B415.82B
Cash Flow
Free Cash Flow-72.16B-155.76B-133.79B32.08B119.19B
Operating Cash Flow31.75B-56.30B-70.74B92.48B179.09B
Investing Cash Flow-186.26B-55.98B-85.47B-32.26B-184.47B
Financing Cash Flow158.34B122.81B159.46B-58.83B4.06B

Mahindra & Mahindra Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
₹3.98T25.99
5.91%17.72%24.18%
75
Outperform
₹2.41T31.74
2.43%12.27%-4.25%
71
Outperform
₹2.00T36.20
0.85%-2.62%-11.26%
71
Outperform
₹2.46T11.62
0.90%-1.08%-34.23%
70
Outperform
₹4.65T32.00
0.91%7.53%-2.90%
69
Neutral
₹1.67T34.57
1.15%15.21%15.48%
61
Neutral
$17.64B14.17-5.23%3.04%1.43%-15.11%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:M&M
Mahindra & Mahindra Ltd.
3,198.15
443.33
16.09%
IN:BAJAJ.AUTO
Bajaj Auto Limited
8,630.60
-2,217.96
-20.44%
IN:EICHERMOT
Eicher Motors Limited
6,101.30
1,252.65
25.84%
IN:HYUNDAI
Hyundai Motor India Limited
2,459.00
580.50
30.90%
IN:MARUTI
Maruti Suzuki India Limited
14,789.95
2,491.63
20.26%
IN:TATAMOTORS
Tata Motors Limited
668.80
-414.38
-38.26%
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.Date of analysis: Aug 02, 2025