About Mahindra & Mahindra

• Mahindra & Mahindra Ltd is one of the most diversified automobile company in India
• It has presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers.
• The group has a presence across 22 industries, 100+ countries and operates 150+ entities on a consolidated basis
• Mahindra Auto sells 39,981 SUVs, a 32% growth and total volumes of 70,576 with 21% growth in November 2023

• It also has presence across financial services, auto components, hospitality, infrastructure, retail, logistics, steel trading and processing, IT businesses, agri, aerospace, consulting services, defence, energy and industrial equipment through its subsidiaries and group companies.

Key Ratios

Market Share

• Commercial Vehicle: 22.73 %
• Passenger Vehicle: 10.97 %
• Electric Vehicle: 8.50 %
• Light commercial Vehicle: 45.50 %

Business Segment & Revenue Mix

Product Wise Breakup

1) Automotive Division: 53.30% of Total Revenue

• The company is the 4th largest Passenger Vehicle
• 2nd largest CV and Largest small commercial vehicle (LCV) player in the domestic market of India

2) Farm Equipment Division: 23.6% of Total Revenue

• It has a market share of ~42% in the domestic tractor industry. 
• It has maintained its leadership position for the last 40 consecutive years in the tractor industry in India

3) Industrial Business sand Consumer Services

• Mahindra Powerol- A leading power backup solution provider
• Construction Equipment- earthmoving, road construction and other equipment.
• 2-Wheeler Business- Jawa Motorcycle iconic brand
• Last Mile Mobility- The company is the market leader in E-3W with 59.5% market share in 9MFY24

Location Wise Breakup

Financial Trend

Revenue

• Old Value (March 2020): 75,382 Crore
• New Value (March 2024): 1,39,078 Crore
• Revenue Growth: 84%

Mahindra & Mahindra profit growth 8771%

Net Profit

• Old Value (March 2020): 127 Crore
• New Value (March 2024): 11,269 Crore
• Net Profit Growth: 8771%

Shareholding Pattern

Change In Shareholding Pattern

Promoters:

• Jun-21: 19.46%
• Mar-24: 18.58%
• Change: -0.88%
• Analysis: The promoters’ shareholding has decreased by 0.88%. This indicates a slight reduction in the promoters’ stake in the company over this period.

Foreign Institutional Investors (FIIs):

• Jun-21: 40.05%
• Mar-24: 41.75%
• Change: +1.70%
• Analysis: FIIs have increased their shareholding by 1.70%. This indicates growing interest or confidence by foreign investors in the company, suggesting positive perceptions about the company’s future prospects.

Domestic Institutional Investors (DIIs):

• Jun-21: 26.12%
• Mar-24: 26.13%
• Change: +0.01%
• Analysis: There is a negligible increase of 0.01% in DII shareholding, indicating stable confidence from domestic institutions in the company’s performance.

Government:

• Jun-21: 0.07%
• Mar-24: 0.07%
• Change: 0.00%
• Analysis: The government’s shareholding remains unchanged at 0.07%, indicating no change in its stake in the company.

Public:

• Jun-21: 10.20%
• Mar-24: 9.70%
• Change: -0.50%
• Analysis: The public shareholding has decreased by 0.50%. This suggests a slight reduction in the number of shares held by individual or non-institutional investors.

Others:

• Jun-21: 4.10%
• Mar-24: 3.75%
• Change: -0.35%
• Analysis: The shareholding of ‘Others’ has decreased by 0.35%. This category typically includes shares held by entities that don’t fall into the other categories, and their reduction suggests a minor reallocation or divestment.

Stock Price Returns

1 Year Returns: 91.64%

• With the strong increase in the sales, company has given 91.64% returns within 1 year to their investors

5 Years Returns: 275.23%

• After COVID, company has performed exceptionally well & hence it has given returns of 275.23% within 5 years to their investors.

Company Valuation

• Current PE- 28.1 (Blue line)
• Median PE (5 years) – 20.5 (Red Line)
• As the current PE is greater than the Median PE so we can say that company is overvalued.
• As the Industry PE is 30.1, from this we can say company is fairly valued.

What should Investors Do ?

• As the Mahindra is the leading auto brand in India & it will definitely grow in the future.
• 5 years Revenue & Net Profit Growth is exceptionally well & Net Profit is sitting at all time high with great numbers.
• Fundamental of the company are really good at this point.
• While talking about the company valuation, Mahindra & Mahindra is slightly overvalued
• At the current price level, if you want to invest for the long term (5-10 years) it will definitely good returns at
• Do not put all of your eggs in 1 basket & invest in those things that you know & that you can understand.

Check Out this – Why you should not invest in Zomato

Disclaimer

• Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
• This article is a complete guide about Mahindra & Mahindra Ltd.
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
• Hopefully, this information will help you in your further investment.
• If you have any further queries, please comment below. We will be happy to answer all your questions.
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