Mahindra & Mahindra Ltd.
Auto · NSE
52-week range
₹2,896 – ₹3,840
From 52w high
-13.3%
RSI (14)
59.8
vs SMA 50 / 200
↑ 50 · ↓ 200
Mahindra & Mahindra (M&M) is an Auto sector large-cap trading at ₹3,330, carrying a trailing PE of 21.9 — the lowest among its 6-peer group (peer range: 27.8–40.7). Q4 FY26 net profit grew 42% YoY to ₹4,668 crore and the 5-year earnings CAGR stands at 44.8%, yet the stock sits 3.2% below its 200-day moving average and 13.3% off its 52-week high.
- ✓Lowest PE in the peer group at 21.9 against a peer range of 27.8 to 40.7, with a forward PE of 20.7.
- ✓Q4 FY26 net profit growth of 42% YoY (₹4,668 crore) and a 5-year earnings CAGR of 44.8% reflect sustained bottom-line expansion.
- ✓ROE of 18.75% ranks 2nd of 6 peers in the Auto sector, above Maruti Suzuki (14.4%) and ahead of peers with null ROE disclosures.
- ✓5-year revenue CAGR of 30.9% alongside the earnings growth rate indicates operating leverage has been meaningful over the medium term.
- ✗Consolidated debt-to-equity of 125.07 is at a level more typical of financial services entities; the elevated figure reflects M&M Financial and other lending subsidiaries but inflates leverage optics for the Auto business assessment.
- ✗Free cash flow has been positive in only 1 of the available persistence years, with debt classified as trending upward — a pattern that limits capital return optionality and raises reinvestment-intensity questions.
- ✗Price has underperformed its own 200-DMA (₹3,330 vs ₹3,439) despite strong earnings; 12-month price change of +9.4% trails the earnings growth rate materially, suggesting multiple compression.
- ✗Quality score of 52 ranks 3rd of 6 in the peer group, below Eicher Motors (60) and Bajaj Auto (55), indicating M&M is mid-pack on composite quality despite its earnings momentum.
- ·M&M reported Q4 FY26 net profit of ₹4,668 crore (up 42% YoY) on May 5 2026, with the automotive business cited as the primary FY26 growth driver and a dividend of ₹30 per share declared.
- ·The stock has declined 6.8% over the past 3 months against a backdrop of strong quarterly results, with the price recovering above the 50-DMA (₹3,178) but remaining below the 200-DMA (₹3,439).
- ·News flow over the past week is dominated by earnings coverage with no negative regulatory or operational headlines; the 6-article sample is thin and neutral in aggregate sentiment.
- ?Does the 44.8% five-year earnings CAGR reflect a structural improvement in M&M's Auto business model, or is it partly driven by recovery from a low base and financial-services subsidiary contributions?
- ?How does the consolidated D/E of 125.07 decompose between the Auto standalone entity and financial services subsidiaries, and what is the standalone Auto segment's leverage profile?
- ?With FCF positive in only 1 of the available persistence years and debt rising, how is M&M funding its capital expenditure cycle — and what is the trajectory of free cash conversion as the SUV product cycle matures?
- ?Given that the stock trades 13.3% below its 52-week high despite 42% profit growth, what factors — margin outlook, competitive pressure from Tata Motors, EV transition costs — might explain the gap between earnings trajectory and price action?
PE
21.9
Forward PE
20.7
ROE
+18.8%
Profit margin
+8.5%
D/E
125.07
Dividend yield
+1.0%
Quality score
52/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
1/5 yrs
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.Analysis generated 10 May 2026.