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Last Updated on: 31 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Mahindra & Mahindra Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 31, 2024, 8:18 am

Market Cap 3,73,419 Cr.
Current Price 3,003
High / Low 3,222/1,575
Stock P/E31.5
Book Value 567
Dividend Yield0.70 %
ROCE13.6 %
ROE18.4 %
Face Value 5.00
PEG Ratio0.22

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

View Share Price Target for Mahindra & Mahindra Ltd

Competitors of Mahindra & Mahindra Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Maruti Suzuki India Ltd 3,39,522 Cr. 10,799 13,680/9,73824.2 2,8351.16 %21.8 %16.8 % 5.00
Mahindra & Mahindra Ltd 3,73,419 Cr. 3,003 3,222/1,57531.5 5670.70 %13.6 %18.4 % 5.00
Hindustan Motors Ltd 605 Cr. 29.0 48.7/15.215.0 1.400.00 %2.32 %16.7 % 5.00
Industry Average237,848.67 Cr4,610.3323.571,134.470.62%12.57%17.30%5.00

All Competitor Stocks of Mahindra & Mahindra Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales19,22721,62621,45619,17221,47023,59425,93428,41429,87030,62032,45633,89234,436
Expenses15,72219,10318,05718,18416,57819,06821,65724,01624,80225,36826,79827,64228,706
Operating Profit3,5052,5233,3999874,8924,5264,2784,3995,0685,2535,6586,2495,730
OPM %18%12%16%5%23%19%16%15%17%17%17%18%17%
Other Income-2445283475656908151,1356751,3481,1856621,065812
Interest1,5891,5161,4031,3001,2851,2111,2221,2191,3821,5961,6341,7191,835
Depreciation8618478508028529199359601,0921,1101,1941,1281,139
Profit before tax8106871,493-5503,4453,2113,2562,8943,9433,7323,4924,4683,568
Tax %82%77%23%40%28%23%20%18%23%20%14%18%30%
Net Profit1481601,150-3322,4912,4852,6082,3613,0212,9942,9983,6842,484
EPS in Rs1.095.670.643.4115.5115.9918.0017.6622.3021.5321.2028.2118.88

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
Sales59,39968,69374,00171,44875,84183,77392,094104,72175,38274,27890,171121,269136,082
Expenses52,14059,57863,83062,65565,75973,03878,86889,51465,22462,79175,488100,983112,222
Operating Profit7,2599,11610,1708,79310,08210,73513,22615,20710,15811,48714,68320,28523,861
OPM %12%13%14%12%13%13%14%15%13%15%16%17%18%
Other Income5268417738001,3992,0774,3662,6768851,1523,2043,9613,294
Interest1,8002,2972,9543,1573,3683,6483,9875,0216,0216,1025,0185,8307,132
Depreciation1,8022,0802,1702,1242,4422,8133,2803,9913,3673,3783,5084,3574,583
Profit before tax4,1845,5805,8204,3135,6726,35010,3268,8711,6553,1589,36214,06015,439
Tax %34%35%26%40%37%36%23%32%119%52%23%19%
Net Profit3,0604,1295,1543,3813,5544,0517,9586,017-3211,5127,25311,37412,143
EPS in Rs25.4633.3837.8925.2625.3529.7760.4142.761.0214.5852.9182.6889.67
Dividend Payout %24%19%18%23%21%22%11%17%205%54%20%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)34.93%24.82%-34.40%5.12%13.98%96.45%-24.39%-105.33%571.03%379.70%56.82%
Change in YoY Net Profit Growth (%)0.00%-10.11%-59.22%39.52%8.87%82.46%-120.84%-80.94%676.36%-191.33%-322.88%

Mahindra & Mahindra 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:7%
5 Years:6%
3 Years:23%
TTM:11%
Compounded Profit Growth
10 Years:10%
5 Years:17%
3 Years:80%
TTM:10%
Stock Price CAGR
10 Years:17%
5 Years:41%
3 Years:53%
1 Year:76%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:17%
Last Year:18%

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 Capital295295296270311543544554555556557557558
Reserves19,66623,01225,56126,22229,46736,23239,43939,41541,02746,56755,80965,63369,944
Borrowings28,71135,16737,91141,55348,76255,89870,84882,09280,62577,60592,247108,647116,844
Other Liabilities27,46029,41530,60831,80635,29643,69651,05743,65542,76247,66155,67059,88467,934
Total Liabilities76,13187,88994,37699,852113,835136,369161,889165,716164,968172,388204,283234,722255,280
Fixed Assets18,30718,38119,04720,58520,98926,18228,98329,68921,38026,01827,14028,12935,328
CWIP1,6312,1913,0322,3714,2794,2694,7606,8567,8736,7033,9698,0394,544
Investments6,4408,08210,02711,60314,66216,01818,26819,21028,77830,06035,27235,20834,411
Other Assets49,75259,23462,27065,29373,90589,900109,878109,960106,938109,607137,902163,345180,997
Total Assets76,13187,88994,37699,852113,835136,369161,889165,716164,968172,388204,283234,722255,280

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-922-2441,0552,385183682-4,347-1,45717,9099,248-7,074-5,630
Cash from Investing Activity +-2,903-4,524-4,357-5,506-5,875-5,467-7,174-6,870-19,686-3,252-8,866-5,615
Cash from Financing Activity +4,5085,5771,6692,9676,1086,31413,1946,933406-5,88315,94612,281
Net Cash Flow684810-1,633-1544161,5291,672-1,394-1,37011361,037

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow7.00-19.00-25.00-29.00-31.00-38.00-42.00-55.00-72.00-69.00-63.00-72.00

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
Debtor Days282828283134303430262120
Inventory Days7368727464647410691828381
Days Payable1049697108107125127142147134118112
Cash Conversion Cycle-303-6-11-27-23-3-26-27-13-11
Working Capital Days253031314237232915958987
ROCE %15%14%11%13%12%13%12%7%8%11%13%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters19.46%19.47%19.47%19.45%19.38%19.39%19.37%19.37%19.33%19.33%18.58%18.55%
FIIs38.92%38.66%37.30%37.94%38.27%39.16%39.24%40.14%40.26%40.86%41.75%41.90%
DIIs27.08%27.81%28.78%28.93%28.50%27.72%27.66%26.89%26.79%26.26%26.13%26.18%
Government0.07%0.07%0.07%0.07%0.07%0.07%0.07%0.07%0.07%0.07%0.07%0.07%
Public10.40%9.95%10.40%9.66%9.83%9.77%9.81%9.71%9.73%9.71%9.70%9.57%
Others4.07%4.03%3.97%3.95%3.92%3.88%3.85%3.83%3.80%3.77%3.75%3.73%
No. of Shareholders5,81,7795,68,6036,32,8165,81,2886,49,3416,36,9566,47,1416,36,9846,75,6216,90,0067,21,6727,56,259

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF16,610,0101.672736.915,454,5212024-12-28204.52%
SBI S&P BSE Sensex ETF12,524,6842.062063.575,454,5212024-12-28129.62%
HDFC Flexi Cap Fund - Regular Plan9,078,6673.361324.215,454,5212024-12-2866.44%
SBI Blue Chip Fund5,500,0002.22906.265,454,5212024-12-280.83%
Axis Bluechip Fund5,454,5212.82898.775,454,5212024-12-280%
Axis ELSS Tax Saver Fund4,662,0032.32768.185,454,5212024-12-28-14.53%
Aditya Birla Sun Life Frontline Equity Fund3,735,5562.53615.535,454,5212024-12-28-31.51%
SBI Long Term Equity Fund3,415,0833.26562.725,454,5212024-12-28-37.39%
ICICI Prudential Balanced Advantage Fund3,433,5921500.825,454,5212024-12-28-37.05%
HDFC Balanced Advantage Fund - Regular Plan3,319,3290.76484.165,454,5212024-12-28-39.15%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)101.1492.4159.2016.33-1.15
Diluted EPS (Rs.)100.7091.9658.8316.15-1.04
Cash EPS (Rs.)142.38127.7480.0732.5518.21
Book Value[Excl.RevalReserv]/Share (Rs.)695.30602.37510.96456.20429.94
Book Value[Incl.RevalReserv]/Share (Rs.)695.30602.37510.96456.20429.94
Revenue From Operations / Share (Rs.)1240.441088.94810.80668.99680.00
PBDIT / Share (Rs.)242.82192.99140.43132.48128.28
PBIT / Share (Rs.)200.44153.86108.89102.0697.91
PBT / Share (Rs.)133.27112.7467.4936.6733.03
Net Profit / Share (Rs.)100.0188.6248.532.12-12.16
NP After MI And SOA / Share (Rs.)101.0992.3259.1416.321.15
PBDIT Margin (%)19.5717.7217.3119.8018.86
PBIT Margin (%)16.1514.1213.4215.2514.39
PBT Margin (%)10.7410.358.325.484.85
Net Profit Margin (%)8.068.135.980.31-1.78
NP After MI And SOA Margin (%)8.148.477.292.440.16
Return on Networth / Equity (%)17.0218.2413.954.350.31
Return on Capital Employeed (%)13.8912.6610.279.859.60
Return On Assets (%)4.764.993.771.080.07
Long Term Debt / Equity (X)1.020.971.031.321.31
Total Debt / Equity (X)1.561.571.581.431.56
Asset Turnover Ratio (%)0.620.670.490.390.42
Current Ratio (X)1.301.291.341.401.19
Quick Ratio (X)1.051.061.131.220.98
Inventory Turnover Ratio (X)4.396.085.233.322.93
Dividend Payout Ratio (NP) (%)16.0612.4914.8814.46893.49
Dividend Payout Ratio (CP) (%)11.318.779.705.0532.48
Earning Retention Ratio (%)83.9487.5185.1285.54-793.49
Cash Earning Retention Ratio (%)88.6991.2390.3094.9567.52
Interest Coverage Ratio (X)3.613.693.112.412.36
Interest Coverage Ratio (Post Tax) (X)2.492.481.991.591.47
Enterprise Value (Cr.)316693.68217230.66162866.82144051.4293890.38
EV / Net Operating Revenue (X)2.291.791.811.941.25
EV / EBITDA (X)11.7010.1110.439.796.60
MarketCap / Net Operating Revenue (X)1.551.060.991.190.41
Retention Ratios (%)83.9387.5085.1185.53-793.49
Price / BV (X)3.242.291.902.120.79
Price / Net Operating Revenue (X)1.551.060.991.190.41
EarningsYield0.050.070.070.020.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Mahindra & Mahindra Ltd as of December 31, 2024 is: 3,309.34

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 December 31, 2024, Mahindra & Mahindra Ltd is Undervalued by 10.20% compared to the current share price 3,003.00

Intrinsic Value of Mahindra & Mahindra Ltd as of December 31, 2024 is: 8,101.23

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 December 31, 2024, Mahindra & Mahindra Ltd is Undervalued by 169.77% compared to the current share price 3,003.00

Last 5 Year EPS CAGR: 144.80%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -12.25, which is a positive sign.
  2. The company has shown consistent growth in sales (86.31 cr) and profit (6.85 cr) over the years.
  1. The stock has a low average ROCE of 11.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 44.50, which may not be favorable.
  3. The company has higher borrowings (67,454.62) compared to reserves (39,845.69), which may suggest financial risk.

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 Ltd:
    1. Net Profit Margin: 8.06%
      • 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: 13.89% (Industry Average ROCE: 12.57%)
      • 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%: 17.02% (Industry Average ROE: 17.3%)
      • 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): 2.49
      • 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: 1.05
      • 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: 31.5 (Industry average Stock P/E: 23.57)
      • 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: 1.56
      • 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 Ltd. is a Public Limited Listed company incorporated on 02/10/1945 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65990MH1945PLC004558 and registration number is 004558. Currently Company is involved in the business activities of Manufacture of agricultural and forestry machinery. Company’s Total Operating Revenue is Rs. 57445.97 Cr. and Equity Capital is Rs. 598.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto - Cars & JeepsGateway Building, Apollo Bunder, Mumbai Maharashtra 400001investors@mahindra.com
http://www.mahindra.com
Management
NamePosition Held
Mr. Anand G MahindraChairman
Dr. Anish ShahManaging Director & CEO
Mr. Rajesh JejurikarExecutive Director & CEO
Mr. Vikram Singh MehtaLead Independent Director
Ms. Nisaba GodrejIndependent Director
Mr. Muthiah MurugappanIndependent Director
Mr. T N ManoharanIndependent Director
Ms. Shikha SharmaIndependent Director
Mr. Haigreve KhaitanIndependent Director
Ms. Padmasree WarriorIndependent Director
Mr. Ranjan PantNon Exe.Non Ind.Director
Mr. Sat Pal BhanooNominee Director

FAQ

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

The latest intrinsic value of Mahindra & Mahindra Ltd as on 31 December 2024 is ₹3309.34, which is 10.20% higher than the current market price of ₹3,003.00. The stock has a market capitalization of 3,73,419 Cr. and recorded a high/low of 3,222/1,575 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹69,944 Cr and total liabilities of ₹255,280 Cr.

What is the Market Cap of Mahindra & Mahindra Ltd?

The Market Cap of Mahindra & Mahindra Ltd is 3,73,419 Cr..

What is the current Stock Price of Mahindra & Mahindra Ltd as on 31 December 2024?

The current stock price of Mahindra & Mahindra Ltd as on 31 December 2024 is 3,003.

What is the High / Low of Mahindra & Mahindra Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Mahindra & Mahindra Ltd stocks is 3,222/1,575.

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

The Stock P/E of Mahindra & Mahindra Ltd is 31.5.

What is the Book Value of Mahindra & Mahindra Ltd?

The Book Value of Mahindra & Mahindra Ltd is 567.

What is the Dividend Yield of Mahindra & Mahindra Ltd?

The Dividend Yield of Mahindra & Mahindra Ltd is 0.70 %.

What is the ROCE of Mahindra & Mahindra Ltd?

The ROCE of Mahindra & Mahindra Ltd is 13.6 %.

What is the ROE of Mahindra & Mahindra Ltd?

The ROE of Mahindra & Mahindra Ltd is 18.4 %.

What is the Face Value of Mahindra & Mahindra Ltd?

The Face Value of Mahindra & Mahindra Ltd is 5.00.

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 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