Mahindra & Mahindra Financial Services Ltd. (IN:M&MFIN)
:M&MFIN
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Mahindra & Mahindra Financial Services Ltd.
(M&MFIN)
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Rating:61Neutral
Price Target:
₹357.00
▲(19.10% Upside)
Action:Reiterated
Date:05/05/26
The score is primarily weighed down by weak cash conversion (negative operating and free cash flow in recent years) and high leverage, despite improving revenue/earnings trends. Valuation is a major offset, with a very low P/E and strong dividend yield, while technical and earnings-call inputs are not supported by the provided data.
Positive Factors
Revenue and Earnings Recovery
Sustained top-line and earnings recovery over multiple years indicates improving core lending demand and pricing power in the vehicle/equipment finance segment. This trend supports credit appetite, provision coverage, and reinvestment capacity, improving long-term profitability prospects.
Negative Factors
Weak Cash Generation
Persistent negative operating and free cash flow indicate earnings are not converting to cash, raising dependency on external funding. Over time this elevates liquidity and refinancing risk, limits dividend/repayment flexibility, and constrains capacity to self-fund portfolio growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Earnings Recovery
Sustained top-line and earnings recovery over multiple years indicates improving core lending demand and pricing power in the vehicle/equipment finance segment. This trend supports credit appetite, provision coverage, and reinvestment capacity, improving long-term profitability prospects.
Read all positive factors
Mahindra & Mahindra Financial Services Ltd. (M&MFIN) vs. iShares MSCI India ETF (INDA)
Market Cap
₹429.06B
Dividend Yield2.83%
Average Volume (3M)118.99K
Price to Earnings (P/E)2.7
Beta (1Y)1.50
Revenue Growth13.79%
EPS Growth16.72%
CountryIN
Employees26,662
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)20.54
Shares Outstanding1,389,971,200
10 Day Avg. Volume127,276
30 Day Avg. Volume118,992
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.61
Price to Sales (P/S)2.17
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹369.50Price Target Upside23.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)24.51
Revenue Forecast (FY)₹114.95B
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 vehi...
How the Company Makes Money
M&MFIN primarily makes money through lending and related financial services. Its main revenue stream is interest income earned on loans it disburses (e.g., financing for tractors, utility vehicles, commercial vehicles, and other rural/micro-enterp...
Mahindra & Mahindra Financial Services Ltd. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
56
Neutral
Cash Flow
32
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 197.69B | 90.70B | 81.37B | 124.99B | 112.34B |
| Gross Profit | 108.36B | 90.70B | 81.43B | 73.94B | 68.24B |
| EBITDA | 42.12B | 909.00M | 0.00 | 30.30B | 17.01B |
| Net Income | 28.55B | 22.62B | 19.33B | 20.72B | 11.37B |
Balance Sheet | |||||
| Total Assets | 1.59T | 1.44T | 1.24T | 1.05T | 838.09B |
| Cash, Cash Equivalents and Short-Term Investments | 75.68B | 48.90B | 39.32B | 54.04B | 44.52B |
| Total Debt | 1.14T | 1.08T | 931.77B | 764.51B | 540.79B |
| Total Liabilities | 1.32T | 1.23T | 1.04T | 863.83B | 667.71B |
| Stockholders Equity | 266.39B | 215.29B | 199.33B | 185.60B | 168.96B |
Cash Flow | |||||
| Free Cash Flow | -131.88B | -160.44B | -187.72B | -178.09B | -2.83B |
| Operating Cash Flow | -127.72B | -156.02B | -184.49B | -173.95B | 180.60M |
| Investing Cash Flow | 7.70B | -10.77B | 26.70B | -16.35B | 31.11B |
| Financing Cash Flow | 106.37B | 176.05B | 160.95B | 188.52B | -31.73B |
Mahindra & Mahindra Financial Services Ltd. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | ₹497.36B | 26.89 | ― | 0.71% | 13.88% | 29.05% | |
61 Neutral | ₹429.06B | 2.68 | ― | 2.83% | 13.79% | 16.72% | |
61 Neutral | ₹690.50B | 18.65 | ― | 0.91% | 10.78% | 12.42% | |
61 Neutral | ₹2.17T | 13.58 | ― | 1.08% | 11.01% | 4.86% | |
60 Neutral | ₹1.29T | 17.52 | ― | 0.12% | 20.59% | 22.13% | |
57 Neutral | ₹352.13B | 29.24 | ― | ― | 62.58% | ― |
* Financial Sector Average
IN:M&MFIN
Mahindra & Mahindra Financial Services Ltd.
308.85
54.86
21.60%
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IN:SUNDARMFIN
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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.