Mahindra & Mahindra Financial Services Ltd. (M&MFIN) AI Stock Analysis

• Market Cap: ₹521.86B
• Dividend Yield: 2.83%
• Average Volume (3M): 118.99K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 26,662
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 5.82
• Shares Outstanding: 1,389,971,200
• 10 Day Avg. Volume: 127,276
• 30 Day Avg. Volume: 118,992
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹445.00
• Price Target Upside: 18.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹364.00 ▼(-3.10% Downside)

The score is primarily constrained by weak recent cash generation and ongoing leverage, despite improving reported earnings and balance-sheet growth. Valuation is moderately supportive (P/E ~21 and ~2.65% dividend yield), while technical trend/momentum cannot be meaningfully assessed due to missing indicators.

Positive Factors

Rural-focused lending franchise

A durable business model anchored in rural and semi-urban finance targets structural demand in agriculture and allied sectors. That concentration supports predictable origination pipelines from vehicle and equipment sales and aligns the lending book with long-term rural income cycles and asset lifecycles.

Ecosystem and dealer channel advantage

Close ties to Mahindra vehicle and equipment channels lower customer acquisition costs and enhance remarketing and repossession effectiveness. This structural distribution advantage supports consistent loan flow, cross-sell opportunities, and competitive scale in rural equipment finance over multiple cycles.

Growing equity and scale

Material balance-sheet expansion and rising equity provide a stronger capital base to support disciplined loan growth and absorb credit shocks. Sustained scale enhances funding access and regulatory headroom, improving the company’s ability to maintain operations through adverse credit cycles.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flows reduce internal funding for growth, capex, and buffer against stress. Reliance on external funding can raise funding cost sensitivity and constrain the firm’s ability to de-lever or absorb losses without dilutive or costly financing.

Meaningful and rising leverage

High absolute debt and historically elevated debt-to-equity amplify interest-rate and refinancing risk for a lending business. In tighter credit conditions higher leverage limits strategic flexibility, increases funding costs, and raises sensitivity of earnings to credit and rate shocks.

Choppy revenue and volatile margins

Irregular top-line and inconsistent margins point to earnings quality issues and make forecasting profitability difficult. Revenue and margin volatility undermine sustainable return expectations and heighten execution risk when trying to scale while managing credit costs across rural portfolios.

Mahindra & Mahindra Financial Services Ltd. Business Overview & Revenue Model

Company Description

Mahindra & Mahindra Financial Services Limited, a non-banking financial company, provides asset finance in the rural and semi-urban areas in India. The company offers vehicle financing for auto and utility vehicles, tractors, cars, commercial vehicles and construction equipment, and preowned and other vehicles to transport operators, farmers, small businesses, and self-employed and salaried individuals; personal loans for wedding, children education, and medical emergency; and project finance, equipment finance, working capital finance, vehicle finance, and bill discounting services to small and medium-sized enterprises. It also provides housing finance for purchase, construction, extension, and renovation of property; mutual fund schemes; investments comprising fixed deposits and mutual fund distribution, as well as advisory services; and life and non-life insurance, as well as reinsurance products. Mahindra & Mahindra Financial Services Limited was incorporated in 1991 and is headquartered in Mumbai, India. Mahindra & Mahindra Financial Services Limited is a subsidiary of Mahindra & Mahindra Limited.

How the Company Makes Money

Mahindra & Mahindra Financial Services Ltd. Financial Statement Overview

Summary

Financials are mixed: reported earnings have improved and the balance sheet has grown, but revenue has been choppy with a sharp drop in 2025, leverage remains meaningful, and cash generation is a major weakness with operating/free cash flow deeply negative in 2023–2025.

Income Statement

Profitability improved versus earlier years (net income rising from 2020 to 2025), but the revenue trajectory is choppy, with multiple years of decline and a sharp drop in 2025. Margin data is inconsistent across periods (and 2020 shows deeply negative margins), suggesting earnings quality and underlying profitability have been volatile even as reported net income has recovered.

Balance Sheet

The balance sheet has expanded materially (assets up from 2020 to 2025), but leverage remains meaningful: debt is large and debt-to-equity has historically been elevated (notably very high in 2020, improving thereafter). Equity has grown over time, which is supportive, yet the rising absolute debt level into 2025 increases balance-sheet risk if credit conditions weaken.

Cash Flow

Cash generation is the key weak spot: operating cash flow and free cash flow are negative in most years and are deeply negative in 2023–2025, indicating cash outflows that are not being offset by internal cash earnings. While 2021 showed strong positive operating and free cash flow, the subsequent reversal and further deterioration into 2025 points to elevated funding/liquidity reliance and weaker cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	116.52B	90.70B	81.37B	124.99B	112.34B	118.65B
Gross Profit	93.72B	90.70B	81.43B	73.94B	68.24B	67.59B
EBITDA	4.71B	909.00M	0.00	30.30B	17.01B	10.85B
Net Income	22.92B	22.62B	19.33B	20.72B	11.37B	7.73B
Balance Sheet
Total Assets	15.55B	1.44T	1.24T	1.05T	838.09B	856.01B
Cash, Cash Equivalents and Short-Term Investments	829.00M	1.31B	39.32B	40.67B	44.52B	34.89B
Total Debt	5.48B	800.21B	643.30B	481.02B	361.12B	368.55B
Total Liabilities	10.23B	1.23T	1.04T	863.83B	667.71B	697.25B
Stockholders Equity	15.55B	215.29B	199.33B	185.60B	168.96B	157.76B
Cash Flow
Free Cash Flow	105.64B	-160.44B	-187.72B	-178.09B	-2.83B	57.80B
Operating Cash Flow	74.90B	-156.02B	-184.49B	-173.95B	180.60M	58.26B
Investing Cash Flow	39.66B	-10.77B	26.70B	-16.35B	31.11B	-83.48B
Financing Cash Flow	213.82B	176.05B	160.95B	188.52B	-31.73B	25.48B

Mahindra & Mahindra Financial Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAHABANK	71 Outperform	₹501.64B	7.80	―	2.60%	18.36%	14.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LTF	62 Neutral	₹716.10B	25.71	―	0.91%	15.90%	4.53%
POONAWALLA	56 Neutral	₹323.83B	90.13	―	―	34.63%	-48.50%
LICHSGFIN	55 Neutral	₹289.53B	5.21	―	1.87%	4.79%	13.08%
M&MFIN	52 Neutral	₹521.86B	21.22	―	2.83%	―	―
CHOLAHLDNG	45 Neutral	₹310.80B	13.76	―	0.07%	22.50%	8.48%