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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532720 | NSE: M&MFIN

Mahindra & Mahindra Financial Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:47 pm

Market Cap 32,101 Cr.
Current Price 260
High / Low343/246
Stock P/E14.7
Book Value 162
Dividend Yield2.42 %
ROCE8.74 %
ROE10.0 %
Face Value 2.00
PEG Ratio1.17

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Mahindra & Mahindra Financial Services Ltd

Competitors of Mahindra & Mahindra Financial Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nam Securities Ltd 85.7 Cr. 159198/59.3238 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 845 Cr. 1,4702,041/801862 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 13.5 Cr. 29.542.0/20.59.28 42.20.00 %10.6 %6.92 % 10.0
HCKK Ventures Ltd 39.4 Cr. 106154/77.4219 11.50.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 109 Cr. 101177/54.314.7 2790.99 %3.34 %2.90 % 10.0
Industry Average7,087.59 Cr2,428.3777.225,594.830.28%15.23%17.14%7.45

All Competitor Stocks of Mahindra & Mahindra Financial Services Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Revenue2,9583,0072,5502,9292,9742,8652,9023,0113,3243,4633,5833,8334,100
Interest1,3121,2261,1511,1431,0711,0531,0521,1921,3731,4771,5971,7031,798
Expenses1,9821,5343,5413185569321,5121,0711,0411,0721,5041,7241,456
Financing Profit-336247-2,1431,4681,348880338748910913482406846
Financing Margin %-11%8%-84%50%45%31%12%25%27%26%13%11%21%
Other Income59453454223824-263686674450
Depreciation37373334355043556365666769
Profit before tax-313256-2,1411,4881,334868318668884934483383826
Tax %29%14%27%26%26%28%25%26%25%28%25%25%25%
Net Profit-223219-1,5731,103992629240492664675362287623
EPS in Rs-1.831.75-12.748.907.995.051.943.975.355.512.902.275.04
Gross NPA %9.00%15.50%
Net NPA %

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue2,9064,1755,2946,0516,5867,1897,91010,42911,99512,38211,41912,82814,979
Interest1,1401,6712,2812,6432,8683,1863,4364,4325,3915,3084,4175,0946,576
Expenses7891,1631,5321,9722,4593,1232,5473,1294,9036,0465,3474,6965,757
Financing Profit9771,3421,4811,4351,2588801,9272,8681,7021,0281,6553,0382,646
Financing Margin %34%32%28%24%19%12%24%28%14%8%14%24%18%
Other Income53571012123349475747-8248
Depreciation2024264646545576147151152226268
Profit before tax9611,3531,4621,4001,2248381,9052,8411,6029341,5492,8042,626
Tax %33%31%34%34%36%37%36%34%32%16%26%26%
Net Profit6459299659257875301,2161,8671,0867801,1502,0711,947
EPS in Rs6.198.158.398.036.794.509.5914.798.706.269.2016.7715.72
Dividend Payout %22%22%22%25%29%27%21%22%0%13%39%36%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)44.03%3.88%-4.15%-14.92%-32.66%129.43%53.54%-41.83%-28.18%47.44%80.09%
Change in YoY Net Profit Growth (%)0.00%-40.16%-8.02%-10.77%-17.74%162.09%-75.90%-95.37%13.66%75.61%32.65%

Mahindra & Mahindra Financial Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:9%
3 Years:9%
TTM:21%
Compounded Profit Growth
10 Years:7%
5 Years:1%
3 Years:42%
TTM:10%
Stock Price CAGR
10 Years:3%
5 Years:5%
3 Years:15%
1 Year:-7%
Return on Equity
10 Years:10%
5 Years:9%
3 Years:10%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital113113113113113123123123246247247247247
Reserves4,4675,1815,8306,3566,8479,73211,14611,84615,53016,65018,31319,68619,824
Borrowings20,15225,89329,23234,04440,64444,98658,80265,63465,10162,12681,42998,319108,918
Other Liabilities2,3392,8713,4594,4945,6193,8894,5054,1894,7244,7875,0965,4634,672
Total Liabilities27,07134,05738,63345,00753,22358,73074,57681,79385,60183,809105,085123,716133,661
Fixed Assets1121281191291331472014553995158711,0081,158
CWIP100010111223105-0
Investments4587226541,1991,3742,3783,3275,34012,1268,65410,0639,5989,183
Other Assets26,50033,20737,86043,67951,71456,20571,04675,99673,06474,63794,148113,004123,320
Total Assets27,07134,05738,63345,00753,22358,73074,57681,79385,60183,809105,085123,716133,661

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-7,442-6,448-3,970-4,957-6,467-8,510-12,078-3,1155,82618-17,395-18,449
Cash from Investing Activity +-181-47034-440-97243-1,213-2,689-8,3483,112-1,6352,671
Cash from Financing Activity +7,6966,8983,9075,4316,7668,17413,4906,0502,548-3,17318,85216,095
Net Cash Flow74-20-2934202-9319924526-43-179317

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow789.00-19.00-24.00-28.00-32.00-37.00-42.00-55.00-61.00-59.00-57.00-77.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %24%19%16%12%8%14%17%9%5%7%12%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.16%52.16%52.16%52.16%52.16%52.16%52.16%52.16%52.16%52.16%52.16%52.16%
FIIs18.99%19.24%17.90%17.55%16.93%16.09%14.85%13.92%14.10%12.72%11.95%10.08%
DIIs15.80%15.38%16.16%17.95%22.12%23.76%25.18%26.95%25.84%26.96%28.61%30.66%
Public12.78%12.99%13.58%12.13%8.60%7.83%7.68%6.84%7.79%8.06%7.18%7.00%
Others0.27%0.24%0.21%0.21%0.20%0.18%0.16%0.15%0.14%0.10%0.09%0.09%
No. of Shareholders2,37,7012,49,8892,50,6782,17,6772,14,8971,93,5551,86,2651,85,7052,19,5102,39,3722,27,5122,24,273

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan32,429,7491.59937.875,772,3122024-11-20461.82%
Kotak Emerging Equity Fund - Regular Plan14,686,4661.09424.735,772,3122024-11-20154.43%
SBI Long Term Equity Fund11,249,1951.62325.335,772,3122024-11-2094.88%
Nippon India Growth Fund11,000,0001.31318.125,772,3122024-11-2090.56%
ICICI Prudential Multi Asset Fund8,320,0170.73240.615,772,3122024-11-2044.14%
SBI Contra Fund6,828,1500.84197.475,772,3122024-11-2018.29%
ICICI Prudential Large & Mid Cap Fund6,100,0001.63176.415,772,3122024-11-205.68%
Axis Midcap Fund5,772,3120.68166.945,772,3122024-11-200%
Franklin India Prima Fund5,375,0001.54155.455,772,3122024-11-20-6.88%
HDFC Large and Mid Cap Fund - Regular Plan4,938,2700.89142.815,772,3122024-11-20-14.45%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)15.6616.819.236.9917.48
Diluted EPS (Rs.)15.6516.799.216.9817.44
Cash EPS (Rs.)17.5118.2710.207.2319.29
Book Value[Excl.RevalReserv]/Share (Rs.)161.82151.60138.18128.86195.97
Book Value[Incl.RevalReserv]/Share (Rs.)161.82151.60138.18128.86195.97
Revenue From Operations / Share (Rs.)127.97102.9591.7998.30193.11
PBDIT / Share (Rs.)79.1265.9649.0949.71115.28
PBIT / Share (Rs.)76.8964.1347.8648.49112.89
PBT / Share (Rs.)20.5122.3812.207.2625.29
Net Profit / Share (Rs.)15.2916.448.966.0116.90
NP After MI And SOA / Share (Rs.)15.6616.809.226.2817.47
PBDIT Margin (%)61.8264.0753.4850.5659.69
PBIT Margin (%)60.0862.2952.1449.3258.45
PBT Margin (%)16.0221.7313.297.3813.09
Net Profit Margin (%)11.9415.969.766.118.75
NP After MI And SOA Margin (%)12.2316.3110.046.389.04
Return on Networth / Equity (%)9.6911.166.724.908.98
Return on Capital Employeed (%)15.2914.0011.5812.2115.53
Return On Assets (%)1.561.971.350.901.31
Long Term Debt / Equity (X)2.082.011.982.072.70
Total Debt / Equity (X)4.934.393.684.135.48
Asset Turnover Ratio (%)0.130.130.120.130.13
Current Ratio (X)1.952.112.482.282.17
Quick Ratio (X)1.952.112.482.282.17
Dividend Payout Ratio (NP) (%)38.3021.418.670.0045.04
Dividend Payout Ratio (CP) (%)33.5319.317.640.0039.62
Earning Retention Ratio (%)61.7078.5991.330.0054.96
Cash Earning Retention Ratio (%)66.4780.6992.360.0060.38
Interest Coverage Ratio (X)1.401.601.371.151.32
Interest Coverage Ratio (Post Tax) (X)1.271.411.251.101.19
Enterprise Value (Cr.)129314.63106110.1877062.6885722.0673262.55
EV / Net Operating Revenue (X)8.198.366.817.086.17
EV / EBITDA (X)13.2413.0412.7314.0010.33
MarketCap / Net Operating Revenue (X)2.182.251.732.020.76
Retention Ratios (%)61.6978.5891.320.0054.95
Price / BV (X)1.731.541.161.550.75
Price / Net Operating Revenue (X)2.182.251.732.020.76
EarningsYield0.050.070.050.030.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Mahindra & Mahindra Financial Services Ltd as of November 21, 2024 is: 243.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Mahindra & Mahindra Financial Services Ltd is Overvalued by 6.19% compared to the current share price 260.00

Intrinsic Value of Mahindra & Mahindra Financial Services Ltd as of November 21, 2024 is: 274.54

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Mahindra & Mahindra Financial Services Ltd is Undervalued by 5.59% compared to the current share price 260.00

Last 5 Year EPS CAGR: 12.56%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Mahindra & Mahindra Financial Services Ltd:
    1. Net Profit Margin: 11.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.29% (Industry Average ROCE: 15.23%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 9.69% (Industry Average ROE: 17.14%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.27
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.95
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 14.7 (Industry average Stock P/E: 77.22)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 4.93
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Mahindra & Mahindra Financial Services Ltd. is a Public Limited Listed company incorporated on 01/01/1991 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65921MH1991PLC059642 and registration number is 059642. Currently Company is involved in the business activities of Other financial service activities, except insurance and pension funding activities. Company’s Total Operating Revenue is Rs. 9657.97 Cr. and Equity Capital is Rs. 246.60 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)Gateway Building, Mumbai Maharashtra 400001investorhelpline_mmfsl@mahindra.com
http://www.mahindrafinance.com
Management
NamePosition Held
Dr. Anish ShahChairman
Mr. Raul RebelloManaging Director & CEO
Mr. Ashwani GhaiNon Executive Director
Mr. Amarjyoti BaruaNon Executive Director
Dr. Rebecca NugentIndependent Director
Mr. Dhananjay MungaleIndependent Director
Mr. C B BhaveIndependent Director
Mr. Milind SarwateIndependent Director
Ms. Rama BijapurkarIndependent Director
Mr. Diwakar GuptaIndependent Director
Mr. Vijay Kumar SharmaIndependent Director

FAQ

What is the latest intrinsic value of Mahindra & Mahindra Financial Services Ltd?

The latest intrinsic value of Mahindra & Mahindra Financial Services Ltd as on 21 November 2024 is ₹243.90, which is 6.19% lower than the current market price of ₹260.00.

What is the Market Cap of Mahindra & Mahindra Financial Services Ltd?

The Market Cap of Mahindra & Mahindra Financial Services Ltd is 32,101 Cr..

What is the current Stock Price of Mahindra & Mahindra Financial Services Ltd as on 21 November 2024?

The current stock price of Mahindra & Mahindra Financial Services Ltd as on 21 November 2024 is ₹260.

What is the High / Low of Mahindra & Mahindra Financial Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Mahindra & Mahindra Financial Services Ltd stocks is 343/246.

What is the Stock P/E of Mahindra & Mahindra Financial Services Ltd?

The Stock P/E of Mahindra & Mahindra Financial Services Ltd is 14.7.

What is the Book Value of Mahindra & Mahindra Financial Services Ltd?

The Book Value of Mahindra & Mahindra Financial Services Ltd is 162.

What is the Dividend Yield of Mahindra & Mahindra Financial Services Ltd?

The Dividend Yield of Mahindra & Mahindra Financial Services Ltd is 2.42 %.

What is the ROCE of Mahindra & Mahindra Financial Services Ltd?

The ROCE of Mahindra & Mahindra Financial Services Ltd is 8.74 %.

What is the ROE of Mahindra & Mahindra Financial Services Ltd?

The ROE of Mahindra & Mahindra Financial Services Ltd is 10.0 %.

What is the Face Value of Mahindra & Mahindra Financial Services Ltd?

The Face Value of Mahindra & Mahindra Financial Services Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Mahindra & Mahindra Financial Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE