Mahindra and Mahindra Ltd, with a market capitalization of Rs. 379,208 crores, debt-to-equity ratio of 1.66 and return on equity of 18.4%, is revolutionizing the automotive sector through electric mobility innovations, sustainable manufacturing practices and advanced technological integration globally.
Table of Contents
Overview of the Automotive Sector
The global automotive industry is experiencing an unprecedented transformation with electric vehicles emergence, stringent emission regulations and technological advancements driving manufacturers to adapt their strategies and product portfolios rapidly in response to evolving market demands.
Rising raw material costs, semiconductor shortages and changing consumer preferences create significant challenges while simultaneously presenting opportunities in connected mobility solutions, autonomous driving technologies and sustainable transportation developments.
Financial Analysis of Mahindra and Mahindra Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,38,279 | 1,21,269 | 90,171 |
| Expenses | 1,14,163 | 1,00,983 | 75,488 |
| Operating Profit | 24,116 | 20,285 | 14,683 |
| OPM % | 17 | 17 | 16 |
| Other Income | 2,952 | 2,456 | 1,349 |
| EBITDA | 27,068 | 21,492 | 15,617 |
| Interest | 7,488 | 5,830 | 5,018 |
| Depreciation | 4,724 | 4,357 | 3,508 |
| Profit Before Tax | 14,856 | 12,555 | 7,506 |
| Tax % | 24.96 | 21.39 | 28.09 |
| Net Profit | 12,270 | 11,374 | 7,253 |
| EPS | 101.08 | 92.32 | 59.14 |
| Dividend Payout % | 20.87 | 17.6 | 19.53 |
* Consolidated Figures in Rs. Crores
M&M Company Metrics
Mahindra and Mahindra Ltd showcases robust financial performance in FY 24 with sales of ₹1,38,279 crores, operating profit of ₹24,116 crores and net profit of ₹12,270 crores. Key metrics highlight growth in sales, profits and improved margins compared to FY 23.
Sales Growth: Sales grew from ₹1,21,269 crores in FY 23 to ₹1,38,279 crores in FY 24, reflecting a 14.03% increase. This indicates strong demand across segments, driven by innovative product offerings and a recovering market.
Expense Trends: Expenses rose to ₹1,14,163 crores in FY 24, compared to ₹1,00,983 crores in FY 23, marking a 13.08% increase. Controlled expense growth aligns with higher revenues, maintaining operational efficiency.
Operating Profit & Margins: Operating profit increased to ₹24,116 crores in FY 24 from ₹20,285 crores in FY 23, with OPM improving slightly to 17.08% from 16.56%. This highlights improved operational performance and cost management.
Profitability Indicators: Net profit rose 7.89%, from ₹11,374 crores in FY 23 to ₹12,270 crores in FY 24. EPS increased to ₹101.08, up from ₹92.32, reflecting enhanced shareholder value and profitability.
Taxation & Dividend: Tax increased to ₹3,715 crores in FY 24, up from ₹2,688 crores in FY 23, with a tax rate of 24.96%. The dividend payout improved to 20.87% compared to 17.60% in the previous year.
Key Financial Metrics: Total assets rose to ₹2,36,301 crores in FY 24 from ₹2,05,892 crores in FY 23. Reserves increased to ₹65,334 crores, showcasing robust financial stability, with current liabilities growing to ₹75,546 crores.
Mahindra & Mahindra Stock Performance
Mahindra and Mahindra Ltd delivered impressive returns, achieving a 1-year ROI of 76.3%, 3-year ROI of 54.4% and 5-year ROI of 41.8%. These figures highlight strong growth potential and robust performance over various investment horizons, benefiting long-term investors.
| Period | Return on Investment (%) |
| 1 Year | 76.3 |
| 3 Years | 54.4 |
| 5 Years | 41.8 |
M&M Shareholding Pattern
Mahindra and Mahindra Ltd witnessed slight changes in shareholding patterns in Sep-24. Promoter holdings decreased to 18.54%, FIIs dropped to 41.18%, DIIs rose to 27.04% and retail investors’ stakes reduced to 13.2%, reflecting dynamic investor activity over the quarters.
| All values in % | Sep-24 | Jun-24 | Mar-24 |
| Promoters | 18.54 | 18.56 | 18.59 |
| FIIinsight-icon | 41.18 | 41.9 | 41.75 |
| DII | 27.04 | 26.18 | 26.13 |
| Retail & others | 13.2 | 13.37 | 13.52 |
Partnerships and Innovations by Mahindra & Mahindra
Mahindra & Mahindra has established strategic collaborations with global technology leaders for developing electric vehicles and autonomous systems. Their partnerships span battery technology, connected car solutions and artificial intelligence integration for future mobility platforms. The company’s innovation initiatives drive industry transformation.
The Research and Development division continuously works on innovative solutions, focusing on sustainable technologies and smart manufacturing processes. Their state-of-the-art facilities employ thousands of engineers working on next-generation automotive technologies and sustainable mobility solutions.
The company actively engages with startups and research institutions through their innovation hub, fostering the development of cutting-edge technologies. These collaborations have resulted in breakthrough advancements in electric powertrains and connected vehicle platforms.
Peer Comparison: Mahindra & Mahindra vs Competitors
Mahindra and Mahindra Ltd, with a market cap of ₹3,79,207.9 crores and a P/E of 31.96, outshines peers like Maruti Suzuki (₹3,43,989.43 crores, P/E 24.53) and Hyundai (₹1,45,615 crores, P/E 24) in 1-year returns at 76.33%.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % | CP Rs. |
| M & M | 3049.45 | 379207.9 | 31.96 | 18.39 | 95.42 | 76.33 | 13.58 | 0.69 | 3049.45 |
| Maruti Suzuki | 10941.05 | 343989.43 | 24.53 | 16.84 | 445.97 | 6.2 | 21.82 | 1.14 | 10941.05 |
| Hyundai Motor I | 1,792 | 1,45,615 | 24 | 39.58 | 0 | 0 | 51.41 | 0 | 1792.1 |
| Mercury EV-Tech | 82 | 1,552 | 545 | 3.05 | 0.16 | -31.27 | 2.96 | 0 | 81.71 |
| Hindustan Motors | 29.14 | 608.03 | 15 | 16.74 | 1.93 | 72.43 | 2.32 | 0 | 29.14 |
Future of Mahindra & Mahindra in the Automotive Industry
Mahindra & Mahindra is strategically positioning itself in the electric vehicle segment with substantial investments in new platforms and technologies. Their focus encompasses autonomous driving capabilities, connected features and sustainable manufacturing practices. Their comprehensive ecosystem includes charging infrastructure development.
They are expanding globally through strategic partnerships while strengthening existing market positions with innovative products. Their international expansion includes entering new markets with specialized vehicles and establishing manufacturing facilities in strategic locations worldwide.
The company’s commitment to digital transformation and sustainability ensures long-term growth potential. Their roadmap includes achieving carbon neutrality, implementing circular economy practices and developing zero-emission vehicles across multiple automotive segments.
How to Invest in Mahindra & Mahindra Shares?
To invest in Mahindra & Mahindra shares, open a demat and trading account with a broker like Alice Blue. Complete KYC, research the company’s performance and place a buy order during market hours, specifying the quantity and price for seamless trading.
Ensure your demat account is active and adequately funded. Research Mahindra & Mahindra’s financials, historical performance and industry trends. Use technical or fundamental analysis to assess the ideal entry point, ensuring informed decisions for long-term investment benefits.
Track your portfolio regularly after purchasing the shares. Stay updated with Mahindra & Mahindra’s business developments, quarterly reports and market trends. This ensures you can make strategic adjustments to maximize returns or mitigate risks when necessary.
Mahindra & Mahindra – FAQs
Mahindra & Mahindra’s market capitalization of Rs. 379,208 crores demonstrates its significant market presence and strong financial foundation. This valuation reflects investor confidence in the company’s growth strategy, operational excellence and future business prospects.
Mahindra & Mahindra maintains leadership in SUVs and farm equipment sectors, with significant market share and brand recognition. Their innovative product portfolio and strong distribution network establish them as a prominent automotive industry leader.
Mahindra & Mahindra’s strategic acquisitions include Ssangyong Motor Company, Pininfarina, Peugeot Motorcycles and investments in electric vehicle technology startups. These acquisitions enhance their global presence and technological capabilities in automotive manufacturing.
Mahindra & Mahindra specializes in manufacturing automobiles, tractors, electric vehicles and commercial vehicles. They have diversified operations across aerospace, agribusiness, defence, real estate, IT services and financial services sectors globally.
Mahindra & Mahindra operates under chairman Anand Mahindra’s leadership, with the Mahindra family maintaining significant ownership through various holding entities. The company is publicly traded with professional management overseeing daily operations.
The major shareholders comprise the Mahindra family through promoter entities, domestic and foreign institutional investors, mutual funds and public shareholders. Their diverse ownership structure maintains strong market confidence and governance.
Mahindra & Mahindra primarily operates in the automotive and farm equipment sectors while maintaining diverse interests across aerospace, defence, IT services, real estate and financial services industries through various subsidiaries.
Mahindra & Mahindra demonstrates robust order book growth, particularly in SUV segments and electric vehicles. Strong demand for models like XUV700, Thar and upcoming electric vehicles drive significant expansion.
Investors can purchase M&M shares through licensed stockbrokers or online trading platforms after opening the Demat Account with Alice Blue. Additional investment options include systematic investment plans and mutual funds featuring M&M.
Current market metrics, growth potential and industry position indicate a balanced valuation. Strong fundamentals, strategic initiatives in emerging sectors and consistent financial performance support the company’s market value.
Mahindra & Mahindra’s future outlook remains strong, driven by electric vehicle development, digital transformation initiatives, sustainable practices and strategic global market expansion. Innovation and technology leadership fuel growth prospects.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
