Mahindra & Mahindra Ltd.
NSE: M&MMahindra & Mahindra Ltd.: A 30-second snapshot
Mahindra and Mahindra (M&M) is an Indian auto and farm-equipment conglomerate trading at Rs 3,040.5, with a trailing PE of 19.96 — the lowest among its benchmarked auto peers — and a 5-year earnings CAGR of 44.8%. The stock is 11.3% below its 200-DMA and 20.82% off its 52-week high, with near-flat 1-year price change of 0.6% despite strong reported earnings growth. ROE of 18.75% has been above 15% in 4 of the tracked persistence years, while FCF was positive in only 1 year and the debt trend is rising.
P/E
20.0
Forward P/E
19.0
ROE
+18.8%
Debt / Equity
125.07
Profit Margin
+8.5%
Div. Yield
+1.1%
5Y ROE > 15%
4/5
5Y FCF > 0
1/5
Quality
68/100
News
8 headlines · 6 positive · 0 negative
M&M Sales Jump 20% in May; UV, CV Demand Stays Strong - HDFC Sky
HDFC Sky
Mahindra & Mahindra sales up 20% to 99,636 units in May on strong demand - Business Standard
Business Standard
May Auto Sales: Mahindra & Mahindra beats estimates across segments; Here's why the stock is down - CNBC TV18
CNBC TV18
M&M fully exits CIE Automotive, accelerates shift to core investments - Mint
Mint
Mahindra Auto Sales May 2026: SUV Volumes Rise 11%, Overall Sales Grow 20% - Autopunditz
Autopunditz
Recent context
- ·May 2026 total sales of 99,636 units grew 20% YoY with UV volumes up 11%; CNBC TV18 noted the stock declined on the day despite the beat, citing valuation concerns and market rotation.
- ·M&M fully exited its stake in CIE Automotive in May 2026, per Mint, describing the move as an acceleration of its shift toward core investments in electric vehicles and farm equipment.
- ·Analyst coverage stands at 34 analysts with a mean rating of 1.29 on a 1-5 scale (lower = more constructive), the second-most constructive reading among the data points tracked.
Strengths
- +Lowest trailing PE (19.96) among 6 benchmarked auto peers (Bajaj Auto 26.9, Eicher 35.2, Maruti 27.9, Bosch 39.6), with a forward PE of 18.99 representing a further modest compression.
- +5-year revenue CAGR of 30.9% and earnings CAGR of 44.8% reflect a multi-year expansion of both the UV/SUV portfolio and the farm-equipment segment.
- +May 2026 standalone sales of 99,636 units represented 20% YoY growth, with SUV volumes up 11%, indicating continued demand momentum across key segments.
- +Exit from CIE Automotive accelerates a stated portfolio streamlining toward core auto and agri businesses, reducing cross-holding complexity.
Weaknesses
- −FCF was positive in only 1 of the tracked persistence years while the debt trend is classified as rising; D/E of 125.07 (including NBFC subsidiary) constrains self-funded capex capacity during concurrent EV and tractor investment cycles.
- −Price is 11.3% below the 200-DMA (Rs 3,427) and 2.7% below the 50-DMA (Rs 3,124.1); the stock has spent an extended period below both moving averages with a 52-week drawdown of 20.82%.
- −ROE of 18.75% ranks 4th of 6 among benchmarked auto peers, trailing Bajaj Auto (28.05%), Eicher Motors (23.77%), and Bosch (19.35%).
- −Profit margin of 8.46% is modest relative to conglomerate scale; quality score of 52 ranks 3rd of 6 in the auto peer group, held back by FCF scarcity and debt trajectory.
Open questions
- ?Does the 44.8% five-year earnings CAGR reflect durable structural pricing power in the UV/SUV segment, or is it amplified by a cyclical recovery in tractor demand and a low earnings base in FY21-22?
- ?How does the NBFC subsidiary (M&M Financial Services) leverage interact with the standalone auto balance sheet in a credit-tightening environment, and what is the consolidated free cash flow picture excluding financial services?
- ?Is the gap between the lowest-PE positioning in the peer group and the below-average quality score (52 vs Eicher 66, Bajaj Auto 55) likely to narrow if FCF generation improves, or does the rising debt trend signal sustained capital intensity?
- ?What proportion of M&M revenue and operating profit is now attributable to the electric vehicle pipeline versus the established ICE UV and tractor segments, and how does the investment cycle timeline affect near-term margin trajectory?
Peer comparison: Auto
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| M&M | Mahindra & Mahindra Ltd.You're viewing | 20.0 | +18.8% | 52 |
| Industry avg | across 5 peers | 32.4 | +16.9% | 43 |
| EICHERMOT | Eicher Motors Ltd. | 35.2 | +23.8% | 66 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 26.9 | +28.1% | 55 |
| BOSCHLTD | Bosch Ltd. | 39.6 | +19.4% | 45 |
| MARUTI | Maruti Suzuki India Ltd. | 27.9 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹3,040.50
SMA 50
₹3,124.10
SMA 200
₹3,427.00
RSI (14)
44.3 (neutral)
From 52w high
-20.8%
1Y return
+0.6%
3M return
-9.2%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highFCF was positive in only 1 of the persistence years tracked and the debt trend is rising; combined with capital-intensive EV and farm-equipment capex cycles, this limits the auto and agri businesses ability to self-fund growth without continued external borrowing. The reported D/E of 125.07 is elevated even accounting for the NBFC subsidiary (M&M Financial Services) structural leverage.
- mediumPrice at Rs 3,040.5 is 2.7% below the 50-DMA (Rs 3,124.1) and 11.3% below the 200-DMA (Rs 3,427); the stock is down 9.18% over 3 months and 0.6% over 1 year, with a 52-week drawdown of 20.82%. Both moving averages remain above current price.
- lowNews sample covers only 8 articles, concentrated around May 2026 sales data; the 6-positive, 0-negative distribution reflects narrow temporal coverage rather than a comprehensive macro picture.
Cross-section contradictions
- 5-year earnings CAGR of 44.8% and May 2026 sales up 20% YoY, yet price is down 9.18% over 3 months and 20.82% from the 52-week high — reported operational momentum has not translated into price performance over the near term.
- M&M carries the lowest trailing PE (19.96) among its 6 benchmarked auto peers, yet its quality score of 52 ranks only 3rd of 6 — FCF scarcity (positive in 1 of tracked persistence years) and a rising debt trend appear to be the drag on the composite quality ranking despite strong reported profitability.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 6 Jun 2026 · rotates through NIFTY 500 every ~5 days