Mahindra & Mahindra Financial Services Ltd.
NSE: M&MFINMahindra & Mahindra Financial Services Ltd.: A 30-second snapshot
Mahindra & Mahindra Financial Services (M&MFIN) is a rural and semi-urban NBFC trading at ₹320.1, marginally above its 50-DMA (₹318.46) and 200-DMA (₹319.44) after a 38% 1-year gain and a 17.9% pullback over 3 months. Trailing PE stands at 15.4x against a forward PE of 11.4x, with ROE of 11.86% and a D/E ratio of 428 — structural for NBFC balance sheets but among the highest in the peer set. Q4 FY26 PAT jumped 55% YoY to ₹873 crore, accompanied by a 375% dividend declaration.
P/E
15.4
Forward P/E
11.4
ROE
+11.9%
Debt / Equity
428.02
Profit Margin
+29.5%
Div. Yield
+2.3%
5Y ROE > 15%
0/5
5Y FCF > 0
0/5
Quality
54/100
News
6 headlines · 4 positive · 0 negative
M&M Financial Q4 Results: At Rs 873 crore, PAT jumps 55%; NBFC declares 375% dividend - Zee Business
Zee Business
M&MFIN: Strong revenue and profit growth, robust capital position, and prudent risk provisioning - TradingView
TradingView
Mahindra & Mahindra Financial Services Limited Reports Earnings Results for the Fourth Quarter and Full Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
M&M Fin Boosts Borrowing Limit to ₹1.75 Lakh Cr, Welcomes LIC Nominee Director - Whalesbook
Whalesbook
Mahindra & Mahindra Financial stock (INE153A01019): Key business insights for US investors - AD HOC NEWS
AD HOC NEWS
Recent context
- ·Q4 FY26 results (April 2026) showed PAT of ₹873 crore (+55% YoY) with a 375% dividend declared; the company also reported a strong capital position and prudent risk provisioning per coverage at the time.
- ·M&MFIN raised its borrowing limit to ₹1.75 lakh crore and welcomed an LIC nominee director to its board — both events occurring in the April 2026 reporting cycle.
- ·Analyst coverage stands at a mean rating of 2.09 across 32 analysts (1–5 scale, lower = more constructive); 6 news items over the tracked period skew 4 positive, 2 neutral, 0 negative.
Strengths
- +Q4 FY26 PAT of ₹873 crore represents 55% YoY growth, with the company declaring a 375% dividend — indicating near-term earnings momentum and a commitment to returning capital.
- +Forward PE of 11.4x represents a 26% compression from the trailing PE of 15.4x, the lowest trailing PE (2nd of 6 peers) in the Banking/NBFC comparison set which has a median around 22x.
- +5-year revenue CAGR of 40.3% and earnings CAGR of 82.6% reflect sustained top-line expansion over a multi-year cycle, even if growth has been accompanied by rising debt.
- +Quality score of 60 ranks 1st among the 6-peer Banking/NBFC group (peer range 20–53), and the company recently expanded its borrowing limit to ₹1.75 lakh crore — signalling continued access to wholesale funding.
Weaknesses
- −ROE of 11.86% ranks last (5th of 6) among sector peers and has never exceeded 15% in any tracked historical year, reflecting a business that generates below-peer returns on shareholder equity.
- −FCF has been positive in 0 of the tracked years and the persistence consistency score is 17 of 100 — indicating the business has not historically generated surplus cash flow beyond its lending operations.
- −Debt trend is classified as rising; 5-year growth funded predominantly by incremental borrowings rather than internal accruals, which elevates sensitivity to interest-rate cycles and liquidity conditions.
- −Down 22.3% from the 52-week high with a 17.9% 3-month price decline, even as the stock remains marginally above both its 50-DMA and 200-DMA — near-term price momentum has reversed from the 12-month recovery trend.
Open questions
- ?Does the 55% PAT growth in Q4 FY26 reflect a durable improvement in credit quality and provisioning norms, or is it driven by a low base from prior quarters of elevated loan-loss provisions?
- ?Given that FCF has been positive in 0 of the tracked years, how does M&MFIN fund its dividend commitments and growth capital — and what does rising debt trend imply for interest coverage at different rate scenarios?
- ?The quality score (60) ranks 1st in the peer set while ROE ranks last — which factors in the quality composite are masking the ROE gap, and are those factors likely to persist?
- ?With the stock 22.3% below its 52-week high despite a strong Q4 result, what has driven the 3-month price decline and does the divergence reflect broader rural credit-cycle concerns or company-specific factors?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| M&MFIN | Mahindra & Mahindra Financial Services Ltd.You're viewing | 15.4 | +11.9% | 60 |
| Industry avg | across 5 peers | 32.0 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.8 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 29.1 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 69.1 | +11.3% | 20 |
Technical state
Current price
₹320.10
SMA 50
₹318.46
SMA 200
₹319.44
RSI (14)
51.9 (neutral)
From 52w high
-22.3%
1Y return
+38.0%
3M return
-17.9%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highD/E of 428 is structural for an NBFC but sits at the extreme end of leverage even within the Banking/NBFC peer set; any sustained rise in borrowing costs or credit-loss rates compresses net interest margins directly against a thin equity base.
- highFCF was positive in 0 of the tracked years and ROE exceeded 15% in 0 of the tracked years, yielding a persistence consistency score of 17 out of 100; the business has not historically compounded equity at rates that generate durable retained surplus.
- medium5-year earnings CAGR of 82.6% and revenue CAGR of 40.3% are strong in aggregate, yet debt trend is classified rising, indicating growth has been funded predominantly through incremental borrowings rather than internal accruals.
- mediumDown 22.3% from the 52-week high and 17.9% over 3 months, despite being marginally above both the 50-DMA (318.46) and 200-DMA (319.44); the 38% 1-year gain shows a recovery from prior lows but recent momentum has reversed.
- lowROE of 11.86% ranks 5th of 6 peers, below Bajaj Finance (17.91%), HDFCBANK (13.82%), Bajaj Finserv (14.6%), and Axis Bank (13.15%); M&MFIN ranks 1st on quality score (60 vs peer range 20-53) and 2nd on trailing PE (15.4x vs peer median ~22x).
Cross-section contradictions
- ROE has never exceeded 15% in any tracked year and FCF has been positive 0 of tracked years, yet the stock is up 38% over 12 months — the price recovery is not explained by a structural improvement in returns on equity visible in the persistence data.
- M&MFIN holds the highest quality score (60) among the 6-peer Banking/NBFC group yet ranks last on ROE — the composite quality ranking and the single-metric ROE ranking point in opposite directions for the same peer set.
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 15 May 2026 · rotates through NIFTY 500 every ~5 days