auto

Mahindra & Mahindra

M_AND_M · Nifty 50

₹3,132.9

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 20.0 (44%ile of 5Y range 18-26). Trading near median.

Sector Positionauto sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score70/100 (STRONG). 3 positive flags, 2 concerns.

Historical Context172 similar technical setups. Average outcome: -9.0% decline. 0% positive.

Revenue TrendRevenue growing at 30.9% YoY. Strong revenue growth — 30.9% YoY

Fundamental

70/100

STRONG

Trust

95/100

Verification

Coverage

89/100

HIGH

Quick Take

Mahindra & Mahindra scores 70/100 on fundamentals (strong). Mahindra & Mahindra: PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 70/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 18.0% broken into three drivers. Each shows how efficiently the company generates returns.

ROE18.0%=

8.6%Net Margin

0.6xTurnover

3.4xLeverage

ROE of 17.97% is moderate margin-driven and stable. Net margin of 8.6% × asset turnover of 0.61x × leverage of 3.4x.

What This Means

Net margin of 8.6% means the company keeps ₹8.6 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.61x means the company efficiently uses its assets to generate revenue. Leverage of 3.4x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

38.0%

Operating

17.2%

Net

8.6%

declining

Gross margin 38.0% → operating margin 17.2% → net margin 8.6%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

WEAK

Cash flow only covers 0.7x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

ADEQUATE

Interest covered 3.5x — adequate buffer. Debt is manageable. Debt/EBITDA at 3.3x is moderate.

Free Cash Flow

STRONG

FCF margin at 1.1% — barely positive. Limited cash after capex.

Peer Comparison

Mahindra & Mahindra is compared against 10 peers in the auto sector.

ARE_AND_M ASHOKLEY BAJAJ-AUTO BAJAJ_AUTO BHARATFORG BOSCHLTD EICHERMOT EXIDEIND HEROMOTOCO HYUNDAI

Key Watchpoints

🟢

Breaks above ₹3290 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹2976 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 20.0

Valuation normalization

🟢

Auto sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition

⚠️ Low Earnings Quality: Cash flow only 0.7x earnings — weak cash conversion

Risk Flags

🔴 1 Critical⚠️ 1 Warning✅ 3 Positive5 total flags

🔴Cash covers only 4% of current liabilities

Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Working capital changes are 94% of operating cash flow

Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

✅Minimal unusual items — clean earnings

Earnings Quality

Profits are from core operations, not one-offs. High quality.

✅Receivables decreasing — 9.9% of revenue

Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

✅Strong analyst consensus: strong_buy (35 analysts)

Valuation

Mean recommendation: 1.3/5 (1=Strong Buy, 5=Strong Sell). Institutional confidence is high.

⚠️ 1 critical + 1 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

✅ Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio

20.0HIGH

P/B Ratio

3.6HIGH

ROE

18.8%HIGH

Market Cap

₹36537992.5L CrHIGH

From 52W High

82% of high

Promoter Holding

25.3%MODERATE

Institutional

53.0%

Sector Peers

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