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Mahindra & Mahindra Ltd logo

Mahindra & Mahindra Ltd

NSE: M&M BSE: 500520

3363.80

(-1.98)%

Sun, 01 Feb 2026, 06:32 pm

Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends paid are not well covered by earnings (0.5x coverage).
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Mahindra & Mahindra's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Mahindra & Mahindra's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Mahindra & Mahindra's earnings are expected to grow significantly at over 20% yearly.
  • Mahindra & Mahindra's earnings growth is expected to exceed the India market average.
  • Mahindra & Mahindra's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Mahindra & Mahindra's earnings are expected to exceed the low risk growth rate next year.
  • An improvement in Mahindra & Mahindra's performance (ROE) is expected over the next 3 years.
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Cons

  • Mahindra & Mahindra is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Auto industry average.
  • Mahindra & Mahindra's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Mahindra & Mahindra's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
  • Mahindra & Mahindra's revenue growth is positive but not above the India market average.

health

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Pros

  • Mahindra & Mahindra is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mahindra & Mahindra is profitable, therefore cash runway is not a concern.
  • Mahindra & Mahindra is profitable, therefore cash runway is not a concern.
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Cons

  • Operating cash flow is negative therefore debt is not well covered.
  • Debt is not covered by short term assets, assets are 0.7x debt.
  • Mahindra & Mahindra's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (120.6% vs 181.2% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
  • Mahindra & Mahindra's level of debt (181.2%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Mahindra & Mahindra board of directors is about average.
  • Pawan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Mahindra & Mahindra management team is about average.
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Cons

  • Pawan's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Mahindra & Mahindra is covered by less than 3 analysts.
    • Mahindra & Mahindra has significant price volatility in the past 3 months.

    past

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    Pros

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      Cons

      • Mahindra & Mahindra's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Mahindra & Mahindra's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Mahindra & Mahindra used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.
      • Mahindra & Mahindra's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • It is difficult to establish if Mahindra & Mahindra has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
      • Mahindra & Mahindra's 1-year earnings growth is negative, it can't be compared to the IN Auto industry average.

      value

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      Pros

      • Mahindra & Mahindra is good value based on assets compared to the IN Auto industry average.
      • BSE:500520 is up 32.8% outperforming the Auto industry which returned 10.7% over the past month.
      • BSE:500520 is up 32.8% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Mahindra & Mahindra's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Mahindra & Mahindra's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Mahindra & Mahindra is overvalued based on earnings compared to the IN Auto industry average.
      • Mahindra & Mahindra is overvalued based on earnings compared to the India market.
      • 500520 underperformed the Auto industry which returned -17.2% over the past year.
      • 500520 underperformed the Market in India which returned -14.5% over the past year.

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