auto · M_AND_M
Mahindra & Mahindra
Mahindra & Mahindra: PE below historical average. NARROW LEADERSHIP regime.
Price
₹3,283.7
Price 2026-07-30
5 day
+3.87%
Short-term move
1 month
+8.13%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹383.8k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Mahindra & Mahindra (M_AND_M) in the auto sector?”
Price chart
₹3,271
+3.59% over period
About Mahindra & Mahindra
Mahindra & Mahindra Limited provides mobility products and farm solutions in India and internationally. It operates through Automotive; Farm Equipment; Auto Investments; Farm Investments; and Investments in Industrial Businesses and Consumer Services segments. The Automotive segment provides automobiles, two wheelers, spares, construction equipment and related services. The Farm Equipment segment sells tractors, implements, spares, powerol, and related services. The Auto Investments segment invests in automotive-related subsidiaries, associates and joint ventures. The Farm Investments segment is involved in the investment of farm equipment related subsidiaries, associates, and joint ventures. The Industrial Businesses and Consumer Services' segment invests in automotive & farm related subsidiaries, associates and joint ventures. The company was incorporated in 1945 and is headquartered in Mumbai, India.
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -8.9% over 14 days) — not a reliable pattern.
52-week position
Trading at 85.5% of 52-week high
Technicals
RSI 14
62.3
Trend
mixed
50 DMA
Above
200 DMA
Below
Key metrics
P/E ratio
21.0
29th pct · 7 quarterly points (limited history)
P/B
3.8
ROE
18.8%
Moderate profitability — 18.8% ROE
Market cap
₹383.8k Cr
Revenue growth
3020.0% YoY
Promoter
25.3%
52-week range
₹2,896 – ₹3,839.9
85.5% of high
RSI (14)
62.3
mixed
vs 50 DMA
Above
DMA ₹3,107.76
Fundamental
75/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Mahindra & Mahindra scores 75/100 on fundamentals (strong). Mahindra & Mahindra: PE below historical average. NARROW LEADERSHIP regime.
Fundamental Score: 75/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 20.3% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 20.27% is strong margin-driven and stable. Net margin 9.0%, asset turnover 0.66x, leverage 3.4x.
What This Means
Net margin of 9.0% means the company keeps ₹9.0 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.66x 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
37.4%
Operating
17.5%
Net
9.0%
Gross margin 37.4% → operating margin 17.5% → net margin 9.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.6x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
ADEQUATEInterest covered 3.7x — adequate buffer. Debt is manageable. Debt/EBITDA at 3.0x is moderate.
Free Cash Flow
STRONGFCF margin at 1.0% — barely positive. Limited cash after capex.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| BAJAJ_AUTO Bajaj Auto | ₹11,432 | +1.3% | 26.3 | 28.1% | 3700% | ₹2.8L Cr |
| EICHERMOT Eicher Motors | ₹7,830.5 | +2.5% | 37.5 | 23.8% | 1910% | ₹2.1L Cr |
| BOSCHLTD Bosch Limited | ₹41,550 | -1.6% | 44.6 | 19.4% | 1800% | ₹1.2L Cr |
| BHARATFORG Bharat Forge | ₹2,164.7 | -0.5% | 94 | 11.6% | 1750% | ₹1.0L Cr |
| ASHOKLEY Ashok Leyland | ₹158.09 | +4.9% | 27.8 | 21.6% | 1740% | ₹96.4k Cr |
| EXIDEIND Exide Industries | ₹452.7 | +2.9% | 41.2 | 6.2% | 920% | ₹35.2k Cr |
| ESCORTS Escorts Kubota | ₹3,013.6 | +3.7% | 24 | 12% | 2140% | ₹32.8k Cr |
| ARE_AND_M Amara Raja Energy & Mobility | ₹906.85 | +4.1% | 17.2 | 11.6% | 1550% | ₹15.4k Cr |
| M_AND_M Mahindra & Mahindra | ₹3,283.7 | +1.7% | 21 | 18.8% | 3020% | ₹3.8L Cr |
Tensions to watch
PE in bottom 29% historically — undervaluation or fundamental deterioration?
Low PE can signal value OR declining growth expectations. Check recent earnings and sector outlook.
Key Watchpoints
Breaks above ₹3448 (+5%)
Trend reversal confirmation
Breaks below ₹3120 (-5%)
Further downside risk
PE reverts to median of 21.7 (7 quarterly points (limited history))
Valuation normalization
Auto sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Working capital is consuming significant cash. Operational efficiency declining.
Profits are from core operations, not one-offs. High quality.
Collection cycle changing. Collection improving — positive for cash flow.
Mean recommendation: 1.2/5 (1=Strong Buy, 5=Strong Sell). Institutional confidence is high.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
