Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by robust demand and capacity expansion, despite manageable margin pressures.
Basis of our Recommendation
Mahindra & Mahindra Ltd is experiencing strong revenue growth driven by robust demand in the automotive and farm equipment segments, supported by capacity expansion and a solid product pipeline. While margins are facing pressure due to rising costs and supply chain challenges, the company maintains a favorable growth outlook for FY27, particularly in the SUV segment.
Why We Like This Stock
- Strong revenue growth driven by automotive and farm equipment segments
- Robust demand for SUVs and farm equipment supports growth
- Strategic focus on AI and capacity expansion enhances market position
Things To Watch Out For
- Margins pressured by rising commodity costs and supply chain challenges
- Geopolitical risks could impact future growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 139,078 | 159,211 | 198,639 | 223,129 | 250,046 |
| Profit Before Tax (Cr.) | 15,978 | 19,080 | 26,059 | 29,573 | 34,232 |
| PBT Margin | 11.5% | 12.0% | 13.1% | 13.3% | 13.7% |
| Net Profit (Cr.) | 12,381 | 14,228 | 19,269 | 20,155 | 23,329 |
| EPS | 101.8 | 117.1 | 158.8 | 180.3 | 208.7 |
Company Overview
Show Company Profile
Mahindra & Mahindra Limited provides mobility products and farm solutions in India and internationally. It operates through five segments: Automotive; Farm Equipment; Auto Investments; Farm Investments; and Investments in Industrial Businesses and Consumer Services. The company offers commercial vehicles, trucks, buses, vans, passenger cars, utility vehicles, and electric vehicles (EV), as well as motorcycles; aero and defense products; offers construction equipment, such as rotaries, tillers, loaders, and backhoes under the Mahindra EarthMaster brand; and road construction equipment comprising motor graders under the Mahindra RoadMaster brand. It is also involved in the provision of farm equipment, including tractors under the Mahindra, Swaraj, and Trakstar brands, as well as farm mechanization solutions, such as rotavators, cultivators, harvesters, rice transplanters, balers, sprayers, and implements and attachments; and renewable energy business comprising installation of EV chargers and provision of Li-ion batteries. In addition, the company offers financial services, such as fixed deposits, retail and other loans, leasing, SME finance, housing finance, mutual funds, and life and non-life insurance broking services, as well as vehicle and equipment financing; provides logistics services; power backup solutions, including diesel and gas generators; and technology services comprising business process, integrated engineering, infrastructure and cloud, network, application development and maintenance, supply chain digital transformation, and design services. Further, it engages in the sale of timeshare and vacation ownership through its resorts; develops and sells residential properties, and engages in the development, management, and operation of commercial complexes; and processing and trading of steel for automotive, non-automotive, and power industries. The company has a strategic partnership with Embraer S.A. for the development of C-390 Millennium multi-mission military transport aircraft in India. The company was incorporated in 1945 and is headquartered in Mumbai, India.