Mahindra and Mahindra Financial Services Ltd’s fundamental analysis highlights key financial metrics: Market Cap of ₹36,588.20 crore, PE Ratio of 18.93, Debt to Equity of 492.21 and Return on Equity of 9.99%. These indicators reflect the company’s financial health and market valuation.
Mahindra & Mahindra Financial Services Ltd Overview
Mahindra and Mahindra Financial Services Ltd is an Indian non-banking financial company (NBFC). It operates in the financial services sector, providing asset finance, leasing and related services for automobiles, tractors and commercial vehicles.
The company is listed on both the NSE and BSE. With a market capitalization of ₹36,588.20 crore, it’s currently 6.73% away from its 52-week high and 24.88% away from its 52-week low.
Mahindra & Mahindra Financial Services Ltd Financial Results
Mahindra & Mahindra Financial Services displayed strong financial performance in FY 2024 with a focus on growth and profitability. The company’s total income increased compared to FY 2023, showcasing consistent improvements in operational efficiency and profitability, as indicated by key financial metrics.
1. Revenue Trend: Total income increased to ₹15,970 crores in FY 24 from ₹12,832 crores in FY 23, indicating significant growth.
2. Equity and Liabilities: Equity capital stood at ₹246.88 crores in FY 24, with total liabilities reaching ₹1,23,716 crores compared to ₹1,05,085 crores in FY 23.
3. Profitability: Net profit rose to ₹2,811 crores in FY 24 from ₹2,413 crores in FY 23, reflecting a solid improvement in profitability.
4. Earnings per Share (EPS): EPS for FY 24 was ₹15.66, down from ₹16.81 in FY 23, indicating a slight decrease in earnings per share.
5. Return on Net Worth (RoNW): Return on net worth improved with profitability, driven by better operational margins and net profit growth.
6. Financial Position: Non-current assets grew to ₹3,273 crores in FY 24, while current assets rose to ₹1,20,442 crores from ₹1,02,348 crores in FY 23, highlighting stronger liquidity and asset management.
Mahindra & Mahindra Financial Services Limited Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 15,970 | 12,832 | 11,401 |
| Total Expenses | 10,615 | 8,548 | 7,070 |
| Pre-Provisioning Operating Profit | 5,356 | 4,284 | 4,330 |
| PPOP Margin (%) | 33.54 | 33.39 | 37.98 |
| Provisions and Contingencies | 1,956 | 1,183 | 2,690 |
| Profit Before Tax | 3,400 | 3,102 | 1,640 |
| Tax % | 19 | 24 | 24 |
| Net Profit | 2,811 | 2,413 | 1,286 |
| EPS | 16 | 17 | 9 |
| Net Interest Income | 8,838 | 7,605 | 6,900 |
| NIM (%) | 8 | 9 | 9 |
| Dividend Payout % | 40.23 | 35.69 | 39 |
* Consolidated Figures in Rs. Crores
M&M Financial Services Company Metrics
Mahindra and Mahindra Financial Services Ltd’s company metrics include a market capitalization of ₹36,588.20 crore, a book value per share of ₹161 and a face value of ₹2. With a debt-to-equity ratio of 492.21, a return on equity of 9.99% and a 2.13% dividend yield, these figures underscore the company’s financial position and investment profile.
Market Capitalization: Market Capitalization represents the total market value of M&M Financial Services’ outstanding shares, amounting to ₹36,588.20 crore.
Book Value: The book value per share of M&M Financial Services is ₹161, indicating the value of the company’s net assets divided by its outstanding shares.
Face Value: The face value of M&M Financial Services’ shares is ₹2, which is the original cost of the shares as stated on the certificate.
Asset Turnover Ratio: The asset turnover ratio of 0.14 measures how efficiently M&M Financial Services uses its assets to generate revenue.
Total Debt: The total debt of ₹98,319.13 crore represents the sum of all short-term and long-term debt obligations of M&M Financial Services.
Return on Equity (ROE): The ROE of 9.99% measures M&M Financial Services’ profitability in generating income from its equity investments.
EBITDA (Q): The quarterly EBITDA of ₹737.29 crore represents M&M Financial Services’ earnings before interest, taxes, depreciation and amortization.
Dividend Yield: The dividend yield of 2.13% shows the annual dividend payment as a percentage of M&M Financial Services’ current share price, indicating the return on investment from dividends alone.
M&M Financial Services Stock Performance
Mahindra & Mahindra Financial Services has delivered solid returns for investors, showcasing consistent growth over different periods. Over one year, the return on investment was 8.64%, while the three-year return was 22.2% and the five-year return stood at 8.69%.
| Period | Return on Investment (%) |
| 1 Year | 8.64 |
| 3 Years | 22.2 |
| 5 Years | 8.69 |
Example: If an investor had invested ₹1,000 in M&M Financial Services stock:
1 year ago, their investment would be worth ₹1,086.40.
3 years ago, their investment would have grown to ₹1,222.
5 years ago, their investment would be worth ₹1,086.90.
Mahindra & Mahindra Financial Services Peer Comparison
Mahindra & Mahindra Financial Services Ltd, with a market cap of ₹39,631 crores, trades at a P/E of 19.14 and delivers a ROE of 10.02%. Its 1-year return is 6.02%. Compared to peers like Shriram Finance (86.79%) and Bajaj Holdings (52.25%), its returns are modest.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Bajaj Finance | 7582.45 | 469350.86 | 31.44 | 22.12 | 242.47 | 1.49 | 11.93 | 0.47 |
| Bajaj Finserv | 1916.8 | 306048.19 | 36.68 | 15.28 | 52.28 | 24.17 | 11.72 | 0.05 |
| Jio Financial | 353.9 | 224842.73 | 141.83 | 1.27 | 2.5 | 55.36 | 1.55 | 0 |
| Cholaman.Inv.&Fn | 1604.3 | 134829.26 | 36.87 | 20.16 | 43.74 | 35.02 | 10.41 | 0.12 |
| Shriram Finance | 3532.1 | 132803.17 | 17.56 | 15.93 | 204.54 | 86.79 | 11.27 | 1.27 |
| Bajaj Holdings | 11163.4 | 124237.48 | 16.65 | 14.77 | 670.49 | 52.25 | 13.07 | 1.17 |
| HDFC AMC | 4378.3 | 93527.63 | 45.13 | 29.51 | 97.06 | 64.79 | 37.72 | 1.6 |
| M & M Fin. Serv. | 320.75 | 39631.47 | 19.14 | 10.02 | 16.77 | 6.02 | 8.74 | 1.96 |
Mahindra & Mahindra Financial Services Shareholding Pattern
Mahindra & Mahindra Financial Services’ shareholding pattern for June 2024 shows that promoters hold 52.16%, unchanged from previous quarters. Foreign Institutional Investors (FIIs) reduced their stake to 10.08% from 11.95% in March. Domestic Institutional Investors (DIIs) increased their holdings to 30.66%, while retail investors held 7.09%.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 52.16 | 52.16 | 52.16 |
| FII | 10.08 | 11.95 | 12.72 |
| DII | 30.66 | 28.61 | 26.96 |
| Retail & others | 7.09 | 7.27 | 8.16 |
Mahindra & Mahindra Financial Services Ltd History
Mahindra & Mahindra Financial Services Limited is a prominent non-banking financial company (NBFC) in India. It specializes in providing asset finance through an extensive branch network, focusing on automobile, tractor and commercial vehicle financing for both new and pre-owned vehicles.
The company has diversified its offerings to include housing finance, personal loans, SME financing and insurance broking services. This expansion has allowed M&M Financial Services to cater to a broader customer base, including transport operators, farmers and self-employed individuals.
M&M Financial Services has also ventured into international markets, offering wholesale inventory financing to dealers and retail financing to customers in the United States. This global expansion, coupled with its diverse product portfolio, has positioned the company as a significant player in the NBFC sector.
How To Invest In Mahindra & Mahindra Financial Services Share?
To invest in Mahindra & Mahindra Financial Services shares, open a demat account with Alice Blue. Research the company’s fundamentals, financial performance and position in the NBFC sector. Analyze historical stock data and compare it with industry peers.
Determine your investment strategy based on your financial goals and risk tolerance. Consider factors such as the company’s loan book quality, rural market exposure and regulatory environment for NBFCs. Decide on the investment amount and timing.
Place your order through the broker’s platform. Regularly monitor your investment, staying updated on company news, quarterly results and financial sector trends. Consider seeking advice from a financial advisor for personalized guidance and to ensure your investment aligns with your overall portfolio strategy.
M&M Financial Services Fundamental Analysis – FAQs
Mahindra and Mahindra Financial Services Ltd’s fundamental analysis reveals a Market Cap of ₹36,588.20 crore, PE Ratio of 18.93, Debt to Equity of 492.21 and Return on Equity of 9.99%. These metrics provide insights into the company’s financial health, profitability and market valuation.
Mahindra & Mahindra Financial Services’ market capitalization is ₹36,588.20 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current stock price by the number of outstanding shares.
M&M Financial Services is a non-banking financial company (NBFC) in India. It provides various financial services, primarily focusing on vehicle and tractor financing, along with housing finance, personal loans, SME financing and insurance broking services.
Mahindra & Mahindra Financial Services is a subsidiary of Mahindra & Mahindra Ltd, which holds a significant stake in the company. As a publicly listed entity, ownership is distributed among various institutional and individual shareholders through stock market participation.
The main shareholders of Mahindra & Mahindra Financial Services Ltd include Mahindra & Mahindra Ltd as the promoter, along with institutional investors and public shareholders. For the most current and accurate information on major shareholders, refer to the company’s latest shareholding pattern disclosure.
M&M Financial Services operates in the non-banking financial services industry. The company specializes in providing asset finance and related financial solutions, primarily for the automobile and commercial vehicle sectors, along with other financial products and services.
To invest in M&M Financial Services shares, open a demat account with Alice Blue. Research the company’s performance and NBFC sector trends. Decide on your investment strategy. Place your order through the broker’s platform. Regularly monitor your investment, staying informed about market conditions. Consider seeking financial advice for personalized guidance.
Determining if M&M Financial Services is overvalued or undervalued requires analyzing its financials, growth prospects, industry position and peer comparison. Consider factors like PE ratio, future earnings potential and NBFC sector trends. Consult recent analyst reports for expert opinions on the company’s valuation.
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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.
