MAHINDRA & MAHINDRA Limited

Yash Telang BSE Code: 500520 | NSE : M&M

FINANCIAL
MODELING
REPORT
(A Comprehensice DCF and Comparable Comps Valuation)
 TABLE OF
CONTENTS
01 Company Profile

02 Historical Statement

03 Common Size Statement

04 Ratio Analysis

05 Forecasting

06 WACC

07 Intronsic Growth

08 DCF Valuation

09 Comparable Comps Valuation

10 Var & Simulation

11 Dupont Analysis

12 Altman's Z score

Note:
The amount which is mentioned in model is in INR Crore
Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The
author of the report is not liable for any losses due to actions taken basis this report. It is advisable to consult SEBI
registered reasearch analyst before making any investments
MAHINDRA & MAHINDRA LTD - One Page Profile
Mahindra & Mahindra is an Indian automobile manufacturing company headquartered in Mumbai, Maharashtra. It
was established in 1945 as Mahindra & Mohammed and later renamed Mahindra & Mahindra. Part of the
Mahindra Group, M&M is one of the largest vehicle manufacturers by production in India. Its unit, Mahindra
Tractors, is the largest manufacturer of tractors in the world by volume. It was ranked 17th on a list of top
companies in India by Fortune India 500 in 2018. Its major competitors in the Indian market include Maruti Suzuki
India and Tata Motors. Anish Shah is the current CEO and Managing Director of Mahindra & Mahindra.

INR (Crs)
Key Financial Metrics Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Share Price - 5Y
Total Sales 75,382 74,278 90,171 1,21,269 1,39,078 3000
Sales Growth (y-o-y) -28.02% -1.46% 21.40% 34.49% 14.69%
2500
Gross Profit 24,936 25,105 26,315 32,934 44,839
Gross Profit Margin (%) 33.08% 33.80% 29.18% 27.16% 32.24% 2000

EBITDA Margin (%) 13.48% 15.46% 16.28% 16.73% 17.90% 1500

EBIT Margin (%) 9.01% 10.92% 12.39% 13.13% 14.50% 1000
EBT Margin (%) 1.02% 2.70% 6.83% 8.33% 9.12%
500
Net Profit Margin (%) -1.60% 0.49% 4.49% 6.11% 6.45%
Earnings Per Sahre (In Rs.) ( 9.70) 2.90 32.57 59.61 72.15 0
2020 2021 2022 2023 2024
EPS Growth (y-o-y) -136.09% -129.93% 1021.85% 83.06% 21.03%

Key Financial Ratio Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Volume - 5Y

Price to Earning 278.85x 54.55x 15.24x 14.01x 21.20x 10 m
EV/EBITDA 10.79x 14.51x 11.36x 11.09x 13.40x
EV/Sales 1.45x 2.24x 1.85x 1.86x 2.40x 5m
Price to Book Value 0.89x 2.38x 2.13x 2.56x 3.61x
Return on Equity (%) 0.21% 2.94% 9.68% 12.86% 11.94% 0m
2020 2021 2022 2023 2024
Return on Capital Employed (%) 5.56% 6.64% 8.96% 10.72% 11.67%

Shareholder's name N.Shares (in Crs) Holding (%) Market Value (in Crs) Shareholding Pattern
PRUDENTIAL MANAGEMENT & SERVICES PRIVATE LIMITED 132.22 10.89% 3,75,114
M&M BENEFIT TRUST (Bharat N Doshi A.K.Nanda Uday Kotak M.M.Murugappan
84.47 6.96%
and Padmini Khare2,39,643
-Trustees) Others 3.75%
LIFE INSURANCE CORPORATION OF INDIA WITH SUB ACCOUNTS 80.80 6.66% 2,29,225
Public &
SBI NIFTY 50 ETF WITH SUB ACCOUNTS 45.74 3.77% 1,29,756 9.77%
Government
MAHINDRA AND MAHINDRA EMPLOYEES STOCK OPTION TRUST 44.28 3.65% 1,25,630
DIIs 26.13%
FIRST SENTIER INVESTORS ICVC - STEWART INVESTORS ASIA PACIFIC
27.40
LEADERS2.26%
SUSTAINABILITY FUND 77,731
GOVERNMENT OF SINGAPORE 25.50 2.10% 72,354 FIIs 41.75%
NPS TRUST- A/C HDFC PENSION MANAGEMENT COMPANY LTD SCHEME 19.98 E - TIER
1.65%
I WITH SUB ACCOUNTS56,684
GOVERNMENT PENSION FUND GLOBAL 17.09 1.41% 48,491 Promoters 18.58%
UTI - NIFTY EXCHANGE TRADED FUND WITH SUB ACCOUNTS 16.01 1.32% 45,412

Managerial Remuneration Designation Change (%) X of Median Salary Capital Structure

Mr. Anand G. Mahindra Chairman -50.15 50:1 Share Price 2,929
Dr. Anish Shah MD &CEO 38.27 161:1 Number of Shares o/s 124
Mr. Manoj Bhat CFO 21.67 - Market Capitalization 3,64,180
Mr. Narayan Shankar Company Secretary -20.54 - Less : Cash & Equivalents ( 12,013)
The remuneration includes sitting fees and commission Add : Total Debt 1,06,626
In addition, Mr. Anand G. Mahindra is entitled to the Benefits uner the Special Post Retirement Benefit Scheme Add : Minority Interest 10,716
Enterprise Value 4,69,509

Future Vision
• M&M is making significant investments in electric vehicles (EVs), with plans to allocate Rs 12,000 crore to its electric vehicle unit, Mahindra Electric
Automobile Ltd, over the next three years.
• They aim to launch a comprehensive range of electric SUVs under the "Born Electric" platform, targeting both domestic and international markets.
• The company is committed to achieving carbon neutrality across its operations. M&M's sustainability goals include reducing greenhouse gas e missions,
enhancing energy efficiency, and increasing the use of renewable energy sources.
• M&M continues to innovate with new vehicle launches, such as the XUV 3XO and future models like the XUV900, which are designed to meet evolving
consumer preferences and market demands.
 Mahindra & Mahindra LTD
Historical Financial Statement - MAHINDRA & MAHINDRA LTD
Year Mar-15 A Mar-16 A Mar-17 A Mar-18 A Mar-19 A Mar-20 A Mar-21 A Mar-22 A Mar-23 A Mar-24 A LTM
# Income Statement
Sales ₹ 71,448.0 ₹ 75,841.4 ₹ 83,773.1 ₹ 92,094.0 ₹ 1,04,720.7 ₹ 75,381.9 ₹ 74,277.8 ₹ 90,170.6 ₹ 1,21,268.6 ₹ 1,39,078.3 ₹ 1,39,078.3
Sales Growth 6.15% 10.46% 9.93% 13.71% -28.02% -1.46% 21.40% 34.49% 14.69% -

COGS ₹ 53,392.5 ₹ 56,073.9 ₹ 63,464.4 ₹ 67,869.4 ₹ 76,462.9 ₹ 50,445.5 ₹ 49,173.0 ₹ 63,855.5 ₹ 88,334.4 ₹ 94,239.1 ₹ 1,14,271.6
COGS % Sales 74.73% 73.94% 75.76% 73.70% 73.02% 66.92% 66.20% 70.82% 72.84% 67.76% 82.16%

Gross Profit ₹ 18,055.5 ₹ 19,767.5 ₹ 20,308.7 ₹ 24,224.6 ₹ 28,257.8 ₹ 24,936.5 ₹ 25,104.8 ₹ 26,315.1 ₹ 32,934.1 ₹ 44,839.2 ₹ 24,806.7
Gross Margin 25.27% 26.06% 24.24% 26.30% 26.98% 33.08% 33.80% 29.18% 27.16% 32.24% 17.84%

Selling & General expense ₹ 9,262.2 ₹ 9,685.1 ₹ 9,573.9 ₹ 10,998.5 ₹ 13,051.3 ₹ 14,778.7 ₹ 13,617.8 ₹ 11,632.3 ₹ 12,648.9 ₹ 19,947.3 -
S&G Exp % Sales 12.96% 12.77% 11.43% 11.94% 12.46% 19.61% 18.33% 12.90% 10.43% 14.34%

EBITDA ₹ 8,793.3 ₹ 10,082.4 ₹ 10,734.8 ₹ 13,226.1 ₹ 15,206.5 ₹ 10,157.8 ₹ 11,487.0 ₹ 14,682.9 ₹ 20,285.3 ₹ 24,891.9 ₹ 24,806.7
EBITDA Margin 12.31% 13.29% 12.81% 14.36% 14.52% 13.48% 15.46% 16.28% 16.73% 17.90% 17.84%

Depreciation ₹ 2,123.8 ₹ 2,441.7 ₹ 2,812.7 ₹ 3,279.9 ₹ 3,990.8 ₹ 3,366.7 ₹ 3,378.1 ₹ 3,507.5 ₹ 4,356.8 ₹ 4,723.8 ₹ 4,723.8
Depreciation % Sales 2.97% 3.22% 3.36% 3.56% 3.81% 4.47% 4.55% 3.89% 3.59% 3.40% 3.40%

EBIT ₹ 6,669.5 ₹ 7,640.8 ₹ 7,922.1 ₹ 9,946.2 ₹ 11,215.7 ₹ 6,791.1 ₹ 8,108.9 ₹ 11,175.4 ₹ 15,928.5 ₹ 20,168.2 ₹ 20,082.9
EBIT Margin 9.33% 10.07% 9.46% 10.80% 10.71% 9.01% 10.92% 12.39% 13.13% 14.50% 14.44%

Interest ₹ 3,156.7 ₹ 3,367.6 ₹ 3,648.5 ₹ 3,987.1 ₹ 5,021.4 ₹ 6,021.2 ₹ 6,102.2 ₹ 5,018.1 ₹ 5,829.7 ₹ 7,488.2 ₹ 7,488.2
Interest % Sales 4.42% 4.44% 4.36% 4.33% 4.79% 7.99% 8.22% 5.57% 4.81% 5.38% 5.38%

EBT ₹ 3,512.8 ₹ 4,273.2 ₹ 4,273.7 ₹ 5,959.1 ₹ 6,194.4 ₹ 769.9 ₹ 2,006.7 ₹ 6,157.3 ₹ 10,098.8 ₹ 12,679.9 ₹ 12,594.7
EBT Margin 4.92% 5.63% 5.10% 6.47% 5.92% 1.02% 2.70% 6.83% 8.33% 9.12% 9.06%

Taxes ₹ 1,720.0 ₹ 2,117.5 ₹ 2,299.7 ₹ 2,367.7 ₹ 2,854.0 ₹ 1,975.6 ₹ 1,645.8 ₹ 2,108.8 ₹ 2,685.8 ₹ 3,708.0 ₹ 3,708.0
Effective Tax Rate 48.96% 49.55% 53.81% 39.73% 46.07% 256.60% 82.02% 34.25% 26.59% 29.24% 29.44%

Net Profit ₹ 1,792.8 ₹ 2,155.7 ₹ 1,973.9 ₹ 3,591.4 ₹ 3,340.4 (₹ 1,205.7) ₹ 360.9 ₹ 4,048.5 ₹ 7,413.0 ₹ 8,972.0 ₹ 8,886.7
Net Margin 2.51% 2.84% 2.36% 3.90% 3.19% -1.60% 0.49% 4.49% 6.11% 6.45% 6.39%

No of Equity Shares 124.22 124.22 124.22 124.32 124.32 124.32 124.32 124.32 124.35 124.35 -

Earning per Share ₹ 14.4 ₹ 17.4 ₹ 15.9 ₹ 28.9 ₹ 26.9 (₹ 9.7) ₹ 2.9 ₹ 32.6 ₹ 59.6 ₹ 72.2 -
EPS Growth 20.24% -8.43% 81.80% -6.99% -136.09% -129.93% 1021.85% 83.06% 21.03% -

Dividend per Share ₹ 5.7 ₹ 5.2 ₹ 6.5 ₹ 6.6 ₹ 7.4 ₹ 2.1 ₹ 7.8 ₹ 10.3 ₹ 14.6 ₹ 18.9 -
Dividend payout ratio 4.60% 4.21% 5.23% 5.27% 5.98% 1.69% 6.29% 8.31% 11.70% 15.21% -

Retained Earning 95.40% 95.79% 94.77% 94.73% 94.02% 0.00% 0.00% 91.69% 88.30% 84.79% -
 Grapical Representation of Income Statement
Sales EBIT
EBITDA
Sales (INR) Sales Growth % EBIT (INR) EBIT Growth %
EBITDA EBITDA Growth
₹ 1,60,000.0 40.00% ₹ 25,000.0 50.00%
₹ 1,40,000.0 30.00% ₹ 30,000.0 50.00% 40.00%
40.00% ₹ 20,000.0 30.00%
₹ 1,20,000.0 20.00% ₹ 25,000.0
30.00% 20.00%
₹ 1,00,000.0 10.00% ₹ 15,000.0 10.00%
₹ 20,000.0 20.00%
₹ 80,000.0 0.00% 0.00%
10.00%
₹ 60,000.0 -10.00% ₹ 15,000.0 ₹ 10,000.0 -10.00%
0.00%
-20.00%
₹ 40,000.0 -20.00% ₹ 10,000.0 -10.00%
₹ 5,000.0 -30.00%
₹ 20,000.0 -30.00% -20.00% -40.00%
₹ 5,000.0
- -40.00% -30.00% - -50.00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 - -40.00% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

EBT Net Profit EPS

EBT (INR) EBT Growth % Net Profit (INR) Net Profit Growth% EPS (INR)

₹ 14,000.0 250.00% ₹ 10,000.0 1200.00% ₹ 80.0

200.00% ₹ 70.0
₹ 12,000.0 ₹ 8,000.0 1000.00%
₹ 60.0
150.00%
₹ 10,000.0 800.00% ₹ 50.0
₹ 6,000.0
100.00% ₹ 40.0
₹ 8,000.0 600.00%
50.00% ₹ 4,000.0 ₹ 30.0
₹ 6,000.0 400.00% ₹ 20.0
0.00%
₹ 2,000.0
₹ 4,000.0 200.00% ₹ 10.0
-50.00%
- -
₹ 2,000.0 -100.00% 0.00%
(₹ 10.0)
- -150.00% (₹ 2,000.0) -200.00% (₹ 20.0)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
# Balance Sheet

Equity Share Capital ₹ 295.7 ₹ 270.4 ₹ 310.6 ₹ 543.1 ₹ 544.0 ₹ 554.3 ₹ 555.2 ₹ 556.1 ₹ 556.8 ₹ 557.4
Reserves ₹ 25,560.7 ₹ 26,222.3 ₹ 29,467.1 ₹ 36,232.1 ₹ 39,439.5 ₹ 39,415.0 ₹ 41,026.8 ₹ 46,566.6 ₹ 55,809.0 ₹ 65,633.2
Borrowings ₹ 37,911.5 ₹ 41,552.9 ₹ 48,761.9 ₹ 55,897.9 ₹ 70,848.3 ₹ 82,092.3 ₹ 80,624.8 ₹ 77,605.2 ₹ 92,246.9 ₹ 1,06,625.5
Other Liabilities ₹ 30,608.4 ₹ 31,806.2 ₹ 35,295.9 ₹ 43,696.2 ₹ 51,057.0 ₹ 43,654.5 ₹ 42,761.6 ₹ 47,660.6 ₹ 55,670.5 ₹ 63,484.7
Total Liabilities ₹ 94,376.2 ₹ 99,851.8 ₹ 1,13,835.5 ₹ 1,36,369.3 ₹ 1,61,888.7 ₹ 1,65,716.1 ₹ 1,64,968.3 ₹ 1,72,388.5 ₹ 2,04,283.1 ₹ 2,36,300.7

Fixed Asstes Net Block ₹ 19,046.7 ₹ 20,584.7 ₹ 20,989.0 ₹ 26,181.9 ₹ 28,982.7 ₹ 29,689.3 ₹ 21,379.7 ₹ 26,018.5 ₹ 27,140.0 ₹ 32,707.4
Capital Work in Progress ₹ 3,032.1 ₹ 2,371.4 ₹ 4,278.9 ₹ 4,269.5 ₹ 4,759.8 ₹ 6,856.5 ₹ 7,872.6 ₹ 6,702.8 ₹ 3,968.6 ₹ 3,461.3
Investments ₹ 10,027.1 ₹ 11,602.6 ₹ 14,662.4 ₹ 16,017.6 ₹ 18,268.1 ₹ 19,210.3 ₹ 28,777.7 ₹ 30,060.4 ₹ 35,272.4 ₹ 35,208.1
Other Assets ₹ 43,428.8 ₹ 45,831.9 ₹ 53,165.8 ₹ 65,527.3 ₹ 80,265.0 ₹ 84,009.0 ₹ 78,463.2 ₹ 80,519.4 ₹ 1,02,745.7 ₹ 1,26,861.3
Total Non Current Assets ₹ 75,534.8 ₹ 80,390.6 ₹ 93,096.2 ₹ 1,11,996.3 ₹ 1,32,275.7 ₹ 1,39,765.1 ₹ 1,36,493.2 ₹ 1,43,301.1 ₹ 1,69,126.7 ₹ 1,98,238.1

Receivables ₹ 5,476.2 ₹ 5,817.6 ₹ 7,199.3 ₹ 8,489.8 ₹ 8,677.9 ₹ 6,928.3 ₹ 6,007.8 ₹ 6,374.0 ₹ 7,028.0 ₹ 7,459.4
Inventory ₹ 8,453.4 ₹ 9,116.1 ₹ 8,886.0 ₹ 9,335.6 ₹ 12,200.2 ₹ 11,111.9 ₹ 9,615.4 ₹ 11,595.8 ₹ 16,855.0 ₹ 18,590.5
Cash & Bank ₹ 4,911.8 ₹ 4,527.6 ₹ 4,654.0 ₹ 6,547.6 ₹ 8,734.9 ₹ 7,910.9 ₹ 12,852.0 ₹ 11,117.6 ₹ 11,273.4 ₹ 12,012.8
Total Current Assets ₹ 18,841.4 ₹ 19,461.3 ₹ 20,739.3 ₹ 24,373.0 ₹ 29,613.0 ₹ 25,951.0 ₹ 28,475.2 ₹ 29,087.4 ₹ 35,156.4 ₹ 38,062.6

Total Assets ₹ 94,376.2 ₹ 99,851.8 ₹ 1,13,835.5 ₹ 1,36,369.3 ₹ 1,61,888.7 ₹ 1,65,716.1 ₹ 1,64,968.3 ₹ 1,72,388.5 ₹ 2,04,283.1 ₹ 2,36,300.7

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
# Cash Flow Statement

Operating Activity -
Profit from operations ₹ 6,454.0 ₹ 7,595.0 ₹ 7,911.0 ₹ 10,159.0 ₹ 11,112.0 ₹ 7,774.0 ₹ 7,588.0 ₹ 10,515.0 ₹ 15,642.0 ₹ 17,541.0
Receivables (₹ 575.0) ₹ 177.0 (₹ 8,609.0) (₹ 11,918.0) (₹ 13,712.0) (₹ 1,516.0) ₹ 4,896.0 (₹ 2,506.0) (₹ 21,702.0) (₹ 1,890.0)
Inventory (₹ 62.0) (₹ 1,113.0) ₹ 241.0 (₹ 256.0) (₹ 2,276.0) ₹ 1,316.0 ₹ 226.0 (₹ 2,173.0) (₹ 5,252.0) (₹ 1,753.0)
Payables ₹ 1,169.0 ₹ 1,939.0 ₹ 2,645.0 ₹ 5,361.0 ₹ 3,466.0 (₹ 6,775.0) ₹ 7,049.0 ₹ 4,972.0 ₹ 7,013.0 ₹ 4,354.0
Loans Advances (₹ 4,229.0) - - - - - - - - -
Other WC items - (₹ 4,241.0) - - - - - - - (₹ 19,887.0)
Direct taxes (₹ 1,701.0) (₹ 1,973.0) (₹ 2,005.0) (₹ 2,664.0) (₹ 2,937.0) (₹ 2,257.0) (₹ 1,850.0) (₹ 1,560.0) (₹ 2,775.0) (₹ 3,996.0)
Cash from Operating Activity ₹ 1,056.0 ₹ 2,384.0 ₹ 183.0 ₹ 682.0 (₹ 4,347.0) (₹ 1,458.0) ₹ 17,909.0 ₹ 9,248.0 (₹ 7,074.0) (₹ 5,631.0)

Investing Activity -
Fixed assets purchased (₹ 4,759.0) (₹ 4,172.0) (₹ 5,026.0) (₹ 5,906.0) (₹ 7,340.0) (₹ 6,896.0) (₹ 5,989.0) (₹ 6,040.0) (₹ 6,305.0) (₹ 9,946.0)
Fixed assets sold ₹ 43.0 ₹ 59.0 ₹ 63.0 ₹ 115.0 ₹ 142.0 ₹ 102.0 ₹ 1,364.0 ₹ 120.0 ₹ 138.0 ₹ 273.0
Investments purchased (₹ 80,047.0) (₹ 87,898.0) (₹ 1,32,173.0) (₹ 1,55,159.0) (₹ 1,96,474.0) (₹ 1,98,568.0) (₹ 1,20,055.0) (₹ 65,421.0) (₹ 50,165.0) (₹ 49,927.0)
Investments sold ₹ 79,778.0 ₹ 86,436.0 ₹ 1,30,940.0 ₹ 1,54,631.0 ₹ 1,95,898.0 ₹ 1,98,132.0 ₹ 1,11,749.0 ₹ 65,127.0 ₹ 46,269.0 ₹ 51,925.0
Interest received ₹ 356.0 ₹ 311.0 ₹ 346.0 ₹ 254.0 ₹ 314.0 ₹ 372.0 ₹ 431.0 ₹ 420.0 ₹ 464.0 ₹ 703.0
Dividends received ₹ 169.0 ₹ 208.0 ₹ 409.0 ₹ 316.0 ₹ 466.0 ₹ 722.0 ₹ 577.0 ₹ 1,247.0 ₹ 1,397.0 ₹ 1,213.0
Investment in group cos - (₹ 147.0) (₹ 647.0) (₹ 704.0) (₹ 319.0) (₹ 418.0) (₹ 359.0) (₹ 222.0) (₹ 62.0) (₹ 249.0)
Issue of shares on acq - - - - - - - - - -
Redemp n Canc of Shares ₹ 401.0 - ₹ 88.0 ₹ 1,677.0 ₹ 717.0 ₹ 175.0 ₹ 316.0 ₹ 617.0 ₹ 1,863.0 ₹ 20.0
Acquisition of companies - (₹ 208.0) (₹ 83.0) (₹ 401.0) - (₹ 59.0) - (₹ 42.0) (₹ 587.0) (₹ 53.0)
Inter corporate deposits (₹ 22.0) - - - - ₹ 6.0 (₹ 262.0) (₹ 552.0) (₹ 93.0) ₹ 502.0
Other investing items (₹ 275.0) (₹ 94.0) ₹ 209.0 (₹ 290.0) (₹ 577.0) (₹ 437.0) (₹ 7,457.0) ₹ 1,494.0 (₹ 1,786.0) (₹ 61.0)
Cash from Investing Activity (₹ 4,356.0) (₹ 5,505.0) (₹ 5,874.0) (₹ 5,467.0) (₹ 7,173.0) (₹ 6,869.0) (₹ 19,685.0) (₹ 3,252.0) (₹ 8,867.0) (₹ 5,600.0)

Financing Activity -
Proceeds from shares ₹ 3.0 ₹ 18.0 ₹ 12.0 ₹ 4.0 ₹ 1.0 ₹ 1,243.0 ₹ 1.0 ₹ 1.0 ₹ 1.0 ₹ 1.0
Proceeds from borrowings - - - - ₹ 71,389.0 ₹ 52,618.0 ₹ 38,100.0 ₹ 53,880.0 ₹ 55,622.0 ₹ 62,908.0
Repayment of borrowings - - - - (₹ 56,352.0) (₹ 44,044.0) (₹ 37,505.0) (₹ 57,223.0) (₹ 37,056.0) (₹ 46,443.0)
Interest paid fin (₹ 489.0) (₹ 443.0) (₹ 471.0) (₹ 521.0) (₹ 723.0) (₹ 624.0) (₹ 809.0) (₹ 680.0) (₹ 734.0) (₹ 597.0)
Dividends paid (₹ 1,200.0) (₹ 932.0) (₹ 936.0) (₹ 963.0) (₹ 1,134.0) (₹ 1,398.0) (₹ 271.0) (₹ 1,037.0) (₹ 1,522.0) (₹ 2,247.0)
Financial liabilities - - - - - (₹ 558.0) (₹ 553.0) (₹ 583.0) (₹ 751.0) (₹ 1,571.0)
Other financing items ₹ 3,355.0 ₹ 4,324.0 ₹ 7,503.0 ₹ 7,794.0 ₹ 12.0 (₹ 304.0) ₹ 1,444.0 (₹ 240.0) ₹ 386.0 ₹ 231.0
Cash from Financing Activity ₹ 1,669.0 ₹ 2,967.0 ₹ 6,108.0 ₹ 6,314.0 ₹ 13,193.0 ₹ 6,933.0 ₹ 407.0 (₹ 5,882.0) ₹ 15,946.0 ₹ 12,282.0

Net Cash Flow (₹ 1,631.0) (₹ 154.0) ₹ 417.0 ₹ 1,529.0 ₹ 1,673.0 (₹ 1,394.0) (₹ 1,369.0) ₹ 114.0 ₹ 5.0 ₹ 1,051.0
 Common Size Statement - MAHINDRA & MAHINDRA LTD
# Common Size Income Statement

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 59.59% 60.10% 60.47% 58.05% 59.09% 49.87% 51.52% 58.41% 62.69% 61.17%
Change in Inventory -0.38% 0.60% 0.02% -0.09% 1.65% -1.10% -0.18% 0.96% 1.68% 1.05%
Power and Fuel 1.10% 0.84% 0.78% 0.80% 0.78% 0.70% 0.58% 0.60% 0.68% 0.00%
Other Mfr. Exp 3.57% 3.45% 3.89% 3.90% 4.06% 4.35% 3.40% 3.46% 3.17% 0.00%
Employee Cost 10.08% 10.14% 10.64% 10.86% 10.74% 10.90% 10.52% 9.30% 7.98% 7.64%
Selling and admin 8.38% 7.59% 7.46% 8.24% 9.22% 8.38% 6.23% 6.63% 6.33% 0.00%
Other Expenses 4.58% 5.18% 3.96% 3.70% 3.24% 11.23% 12.10% 6.27% 4.10% 14.34%
Other Income 1.12% 1.84% 2.48% 4.74% 2.56% 1.17% 1.55% 3.55% 3.27% 2.37%
Depreciation 2.97% 3.22% 3.36% 3.56% 3.81% 4.47% 4.55% 3.89% 3.59% 3.40%
Interest 4.42% 4.44% 4.36% 4.33% 4.79% 7.99% 8.22% 5.57% 4.81% 5.38%
Profit before tax 6.04% 7.48% 7.58% 11.21% 8.47% 2.19% 4.25% 10.38% 11.59% 11.49%
Tax 2.41% 2.79% 2.75% 2.57% 2.73% 2.62% 2.22% 2.34% 2.21% 2.67%
Net profit 4.39% 4.15% 4.41% 8.16% 5.08% 0.17% 2.44% 7.29% 8.48% 8.10%
Dividend Amount 0.99% 0.86% 0.96% 0.88% 0.88% 0.35% 1.31% 1.42% 1.49% 1.69%
EBITDA 12.31% 13.29% 12.81% 14.36% 14.52% 13.48% 15.46% 16.28% 16.73% 17.90%

# Common Size Balance Sheet

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 0.31% 0.27% 0.27% 0.40% 0.34% 0.33% 0.34% 0.32% 0.27% 0.24%
Reserves 27.08% 26.26% 25.89% 26.57% 24.36% 23.78% 24.87% 27.01% 27.32% 27.78%
Borrowings 40.17% 41.61% 42.84% 40.99% 43.76% 49.54% 48.87% 45.02% 45.16% 45.12%
Other Liabilities 32.43% 31.85% 31.01% 32.04% 31.54% 26.34% 25.92% 27.65% 27.25% 26.87%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 20.18% 20.62% 18.44% 19.20% 17.90% 17.92% 12.96% 15.09% 13.29% 13.84%
Capital Work in Progress 3.21% 2.37% 3.76% 3.13% 2.94% 4.14% 4.77% 3.89% 1.94% 1.46%
Investments 10.62% 11.62% 12.88% 11.75% 11.28% 11.59% 17.44% 17.44% 17.27% 14.90%
Other Assets 65.98% 65.39% 64.92% 65.92% 67.87% 66.35% 64.82% 63.58% 67.51% 69.79%
Receivables 5.80% 5.83% 6.32% 6.23% 5.36% 4.18% 3.64% 3.70% 3.44% 3.16%
Inventory 8.96% 9.13% 7.81% 6.85% 7.54% 6.71% 5.83% 6.73% 8.25% 7.87%
Cash & Bank 5.20% 4.53% 4.09% 4.80% 5.40% 4.77% 7.79% 6.45% 5.52% 5.08%
 Ratio Analysis - MAHINDRA & MAHINDRA LTD
Year Mar-15 A Mar-16 A Mar-17 A Mar-18 A Mar-19 A Mar-20 A Mar-21 A Mar-22 A Mar-23 A Mar-24 A Trends Means Median

Sales Growth 6.15% 10.46% 9.93% 13.71% -28.02% -1.46% 21.40% 34.49% 14.69% 9.04% 12.08%
EBITDA Growth 14.66% 6.47% 23.21% 14.97% -33.20% 13.09% 27.82% 38.16% 22.71% 14.21% 18.84%
EBIT Growth 14.56% 3.68% 25.55% 12.76% -39.45% 19.41% 37.82% 42.53% 26.62% 15.94% 22.48%
Net Profit Growth 20.24% -8.43% 81.94% -6.99% -136.09% -129.93% 1021.85% 83.10% 21.03% 105.19% 7.02%
Dividend Growth -8.56% 24.42% 0.82% 13.51% -71.83% 272.93% 32.22% 40.85% 29.98% 37.15% 27.20%

Gross Margin 25.27% 26.06% 24.24% 26.30% 26.98% 33.08% 33.80% 29.18% 27.16% 32.24% 28.01% 27.16%
EBITDA Margin 12.31% 13.29% 12.81% 14.36% 14.52% 13.48% 15.46% 16.28% 16.73% 17.90% 14.36% 14.52%
EBIT Margin 9.33% 10.07% 9.46% 10.80% 10.71% 9.01% 10.92% 12.39% 13.13% 14.50% 10.65% 10.80%
EBT Margin 4.92% 5.63% 5.10% 6.47% 5.92% 1.02% 2.70% 6.83% 8.33% 9.12% 5.21% 5.92%
Net Profit Margin 2.51% 2.84% 2.36% 3.90% 3.19% -1.60% 0.49% 4.49% 6.11% 6.45% 2.70% 3.19%

Sales Expenses % Sales 12.96% 12.77% 11.43% 11.94% 12.46% 19.61% 18.33% 12.90% 10.43% 14.34% 13.65% 12.77%
Depreciation % Sales 2.97% 3.22% 3.36% 3.56% 3.81% 4.47% 4.55% 3.89% 3.59% 3.40% 3.71% 3.59%
Operting Income % Sales 9.33% 10.07% 9.46% 10.80% 10.71% 9.01% 10.92% 12.39% 13.13% 14.50% 10.65% 10.80%

Return on Capital Employes 10.46% 11.23% 10.09% 10.73% 10.12% 5.56% 6.64% 8.96% 10.72% 11.67% 9.39% 10.12%
Retained Earning % 95.40% 95.79% 94.77% 94.73% 94.02% 0.00% 0.00% 91.69% 88.30% 84.79% 72.74% 91.69%
Return on Equity % 6.93% 8.14% 6.63% 9.77% 8.35% -3.02% 0.87% 8.59% 13.15% 13.55% 6.60% 8.35%
Self Sustained Growth Rate 6.61% 7.79% 6.28% 9.25% 7.85% 0.00% 0.00% 7.88% 11.61% 11.49% 6.37% 7.85%
Interest Coverage Ratio 2.11x 2.27x 2.17x 2.49x 2.23x 1.13x 1.33x 2.23x 2.73x 2.69x 2.08x 2.23x

Debtor Turnover Ratio 13.05x 13.04x 11.64x 10.85x 12.07x 10.88x 12.36x 14.15x 17.26x 18.64x 12.81x 12.36x
Creditors Turnover Ratio 2.33x 2.38x 2.37x 2.11x 2.05x 1.73x 1.74x 1.89x 2.18x 2.19x 2.09x 2.11x
Inventory Turnover 8.45x 8.32x 9.43x 9.86x 8.58x 6.78x 7.72x 7.78x 7.19x 7.48x 8.24x 7.78x
Fixed Asset Turnover 3.75x 3.68x 3.99x 3.52x 3.61x 2.54x 3.47x 3.47x 4.47x 4.25x 3.61x 3.61x
Capital Turnover Ratio 2.76x 2.86x 2.81x 2.50x 2.62x 1.89x 1.79x 1.91x 2.15x 2.10x 2.37x 2.15x

Debtor Days 28 28 31 34 30 34 30 26 21 20 29 30
Payable Days 156 153 154 173 178 211 210 193 168 167 177 173
Inventory Days 43 44 39 37 43 54 47 47 51 49 45 47
Cash Conversion Cycle -85 -81 -84 -103 -105 -124 -133 -120 -96 -98 -103 -103

CFO/Sales 1.48% 3.14% 0.22% 0.74% -4.15% -1.93% 24.11% 10.26% -5.83% -4.05% 3.11% 0.22%
CFO/Total Assets 1.12% 2.39% 0.16% 0.50% -2.69% -0.88% 10.86% 5.36% -3.46% -2.38% 1.48% 0.16%
CFO/Total Debt 3.45% 7.50% 0.52% 1.56% -8.51% -3.34% 41.88% 19.40% -12.71% -8.87% 5.53% 0.52%
 Forecasting - MAHINDRA & MAHINDRA LTD
Sales EBITDA EBIT
Year Weight Year Sales (INR) Sales Growth % Year Weight Year EBITDA EBITDA Growth Year Weight Year EBIT (INR) EBIT Growth %
1 2015 A ₹ 71,448.0 - 1 2015 A ₹ 8,793.3 - 1 2015 A ₹ 6,669.5 -
2 2016 A ₹ 75,841.4 6.15% 2 2016 A ₹ 10,082.4 14.66% 2 2016 A ₹ 7,640.8 14.56%
3 2017 A ₹ 83,773.1 10.46% 3 2017 A ₹ 10,734.8 6.47% 3 2017 A ₹ 7,922.1 3.68%
4 2018 A ₹ 92,094.0 9.93% 4 2018 A ₹ 13,226.1 23.21% 4 2018 A ₹ 9,946.2 25.55%
5 2019 A ₹ 1,04,720.7 13.71% 5 2019 A ₹ 15,206.5 14.97% 5 2019 A ₹ 11,215.7 12.76%
6 2020 A ₹ 75,381.9 -28.02% 6 2020 A ₹ 10,157.8 -33.20% 6 2020 A ₹ 6,791.1 -39.45%
7 2021 A ₹ 74,277.8 -1.46% 7 2021 A ₹ 11,487.0 13.09% 7 2021 A ₹ 8,108.9 19.41%
8 2022 A ₹ 90,170.6 21.40% 8 2022 A ₹ 14,682.9 27.82% 8 2022 A ₹ 11,175.4 37.82%
9 2023 A ₹ 1,21,268.6 34.49% 9 2023 A ₹ 20,285.3 38.16% 9 2023 A ₹ 15,928.5 42.53%
10 2024 A ₹ 1,39,078.3 14.69% 10 2024 A ₹ 24,891.9 22.71% 10 2024 A ₹ 20,168.2 26.62%
11 2025 F ₹ 1,22,000.8 -12.28% 11 2025 F ₹ 21,480.9 -13.70% 11 2025 F ₹ 16,751.0 -16.94%
12 2026 F ₹ 1,27,309.1 4.35% 12 2026 F ₹ 22,849.2 6.37% 12 2026 F ₹ 17,877.3 6.72%
13 2027 F ₹ 1,32,617.4 4.17% 13 2027 F ₹ 24,217.6 5.99% 13 2027 F ₹ 19,003.5 6.30%
14 2028 F ₹ 1,37,925.6 4.00% 14 2028 F ₹ 25,586.0 5.65% 14 2028 F ₹ 20,129.8 5.93%
15 2029 F ₹ 1,43,233.9 3.85% 15 2029 F ₹ 26,954.4 5.35% 15 2029 F ₹ 21,256.0 5.59%

EBT Net Profit Earning Per Share

Year Weight Year EBT (INR) EBT Growth % Year Weight YearNet Profit (INR)
Net Profit Growth% Year Weight Year EPS (INR) EPS Growth %
1 2015 A ₹ 3,512.8 - 1 2015 A ₹ 1,792.8 - 1 2015 A ₹ 14.4 -
2 2016 A ₹ 4,273.2 21.65% 2 2016 A ₹ 2,155.7 20.24% 2 2016 A ₹ 17.4 20.24%
3 2017 A ₹ 4,273.7 0.01% 3 2017 A ₹ 1,973.9 -8.43% 3 2017 A ₹ 15.9 -8.43%
4 2018 A ₹ 5,959.1 39.44% 4 2018 A ₹ 3,591.4 81.94% 4 2018 A ₹ 28.9 81.80%
5 2019 A ₹ 6,194.4 3.95% 5 2019 A ₹ 3,340.4 -6.99% 5 2019 A ₹ 26.9 -6.99%
6 2020 A ₹ 769.9 -87.57% 6 2020 A (₹ 1,205.7) -136.09% 6 2020 A (₹ 9.7) -136.09%
7 2021 A ₹ 2,006.7 160.64% 7 2021 A ₹ 360.9 -129.93% 7 2021 A ₹ 2.9 -129.93%
8 2022 A ₹ 6,157.3 206.84% 8 2022 A ₹ 4,048.5 1021.85% 8 2022 A ₹ 32.6 1021.85%
9 2023 A ₹ 10,098.8 64.01% 9 2023 A ₹ 7,413.0 83.10% 9 2023 A ₹ 59.6 83.06%
10 2024 A ₹ 12,679.9 25.56% 10 2024 A ₹ 8,972.0 21.03% 10 2024 A ₹ 72.2 21.03%
11 2025 F ₹ 9,439.9 -25.55% 11 2025 F ₹ 6,496.0 -27.60% 11 2025 F ₹ 52.2 -27.60%
12 2026 F ₹ 10,139.4 7.41% 12 2026 F ₹ 7,087.2 9.10% 12 2026 F ₹ 57.0 9.10%
13 2027 F ₹ 10,838.9 6.90% 13 2027 F ₹ 7,678.4 8.34% 13 2027 F ₹ 61.7 8.34%
14 2028 F ₹ 11,538.5 6.45% 14 2028 F ₹ 8,269.6 7.70% 14 2028 F ₹ 66.5 7.70%
15 2029 F ₹ 12,238.0 6.06% 15 2029 F ₹ 8,860.8 7.15% 15 2029 F ₹ 71.2 7.15%
 Weighted Average Cost of Capital - MAHINDRA & MAHINDRA LTD

All figures are in INR unless stated otherwwise.

Peer Comps
Debt / Debt / Levered Unleverd
Name Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta
2
Beta
3

Mahindra & Mahindra Ltd India 1,06,625.5 3,68,472.4 30.00% 28.94% 22.44% 1.19 0.99
Maruti Suzuki India 118.6 3,95,361.2 30.00% 0.03% 0.03% 0.59 0.59
Tata Motors India 1,07,262.5 3,61,733.6 30.00% 29.65% 22.87% 1.18 0.98
Bajaj Auto India 1,911.7 2,76,862.5 30.00% 0.69% 0.69% 0.71 0.71
Eicher Motors India 419.4 1,35,269.4 30.00% 0.31% 0.31% 0.91 0.90

Average 30.00% 11.92% 9.27% 0.91 0.83

Median 30.00% 0.69% 0.69% 0.91 0.90

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 1.87% Risk Free Rate 6.98%

Tax Rate 30.00% Equity Risk Premium 8.63%
4
Post Tax Cost of Debt 1.31% Levered Beta 0.97
Cost of Equity 15.34%

Capital Strucutre Levered Beta

Current Target Comps Median Unlevered Beta 0.90

Total Debt 106625.5 22.44% 9.27% Target Debt / Equity 10.21%
Market Capitalization 368472.4 77.56% 90.73% Tax Rate 30.00%
Total Capitalization 475097.9 100.00% 100.00% Levered Beta 0.97

Debt / Equity 28.94% 10.21% Weighted Average Cost of Capital

Notes: Cost of Equity 15.34%

1. Tax Rte considered as Marginal Tax Rate for the country Equity Weight 90.73%
2. Levered Beta is based on 2 years weekly data
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate)*Debt/Equity) Cost of Debt 1.31%
4. Levered Beta = Unlevered Beta/(1+(1-Tax Rate)*Debt/Equity) Debt Weight 9.27%

WACC 14.04%
 Intrincisc Growth - MAHINDRA & MAHINDRA LTD

Calculation of ROIC Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Current Assets
Inventories 11,112.0 9,615.0 11,596.0 16,855.0 18,590.0
Trade receivables 6,928.0 6,008.0 6,374.0 7,028.0 7,459.0
Short term loans 29,505.0 31,407.0 31,556.0 36,127.0 39,060.0
Other asset items 54,504.0 47,056.0 48,963.0 66,619.0 87,801.0
Total Current Assets 1,02,049.0 94,086.0 98,489.0 1,26,629.0 1,52,910.0

Current Liabilities
Trade Payables 11,911.0 11,800.0 11,421.0 13,376.0 14,797.0
Advance from Customers 115.0 - - 801.0 515.0
Other liability items 10,137.0 11,882.0 13,295.0 11,709.0 13,627.0
Total Current Liabilites 22,163.0 23,682.0 24,716.0 25,886.0 28,939.0

Net Working Capital 79,886.0 70,404.0 73,773.0 1,00,743.0 1,23,971.0

Non - Current Assets

Land 4,511.0 1,712.0 1,931.0 1,977.0 -
Building 11,956.0 8,482.0 9,728.0 10,862.0 -
Plant Machinery 38,492.0 22,386.0 26,484.0 24,928.0 -
Equipments 417.0 418.0 445.0 452.0 -
Furniture n fittings 1,160.0 805.0 844.0 925.0 -
Vehicles 1,068.0 986.0 1,090.0 1,238.0 -
Intangible Assets 9,733.0 6,932.0 7,046.0 10,625.0 11,299.0
Other fixed assets 1,265.0 937.0 958.0 1,084.0 -
Gross Block 68,602.0 42,658.0 48,526.0 52,091.0 11,299.0
Accumulated Depreciation 38,913.0 21,278.0 22,508.0 24,950.0 -
Net Non Current Assets 1,07,515.0 63,936.0 71,034.0 77,041.0 11,299.0

Invested Capital 1,87,401.0 1,34,340.0 1,44,807.0 1,77,784.0 1,35,270.0

EBIT 6,791.1 8,108.9 11,175.4 15,928.5 20,168.2

ROIC 3.62% 6.04% 7.72% 8.96% 14.91%

Calculation Of Reinvestment Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Net Capex 436.0 8,306.0 294.0 3,896.0 1,998.0

Change in Working Capital 7,870.0 ( 8,012.0) 3,602.0 ( 1,898.0)

EBIT 6,791.1 8,108.9 11,175.4 15,928.5 20,168.2

Marginal Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-T) 5,093.3 6,081.7 8,381.5 11,946.4 15,126.1

Reinvestment 8,742.0 8,600.0 4,190.0 5,894.0

Reinvestment Rate 143.74% 102.61% 35.07% 38.97%

4 year Average 80.10%

4 Year Median 70.79%

Calculation of Growth Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Reivestment Rate 143.74% 102.61% 35.07% 38.97%

ROIC 6.04% 7.72% 8.96% 14.91%

Intrinsic Growth 8.68% 7.92% 3.14% 5.81%

4 year Average 6.39%

4 Year Median 6.86%
 DCF - MAHINDRA & MAHINDRA LTD

Calculation of PV of FCFF Mar-24 A Mar-25 E Mar-26 E Mar-27 E Mar-28 E Mar-29 E

EBIT 20,168.15 19,462.26 19,462.26 19,462.26 19,462.26 19,462.26

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-T) 14,117.71 13,623.59 13,623.59 13,623.59 13,623.59 13,623.59
Less: Reinvestment Rate 70.79% 74.46% 78.14% 81.82% 85.50% 85.50%
Free Cash Flow to Firm (FCFF) 4,124.31 3,478.82 2,977.69 2,476.55 1,975.42 1,975.42
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.936 0.821 0.720 0.631 0.554

PV of FCFF 3,257.61 2,444.99 1,783.11 1,247.16 1,093.59

Excepted Growth -3.50%

Terminal Growth 6.80%
WACC 14.04%

Calculation of Teminal Value Sensitivity Analysis - Enterprise Value

24,396.84 6.00% 8.00% 12% 14.04%
FCFF(n+1) 1,906.28 2.00% 36209.23 27414.97 20379.56 18591.49
WACC 14.04% 4.00% 62592.01 36209.23 23017.84 20337.52
Terminal Growth Rate 6.80% 6.80% -122087.44 97769.05 30120.90 24402.57
10.00% -16556.33 -42939.11 62592.01 35948.01
Terminal Value 26,319.49

Calculation of Equity Value per Share Sensitivity Analysis - Equity Value Per Share Value
-537.14 10% 14.04% 18% 24%
PV of FCFF 9,826.45 3% -533.07 -577.44 -597.73 -613.89
PV of Terminal Value 14,570.39 4% -512.87 -569.78 -593.69 -611.87
Value of Operating Assets 24,396.84 5.00% -484.58 -560.43 -589.03 -609.64
6.80% -389.10 -537.09 -578.53 -604.97
Add: Cash 12,012.75 7% -371.42 -533.76 -577.16 -604.39
Less: Debt 1,03,204.00
Value of Equity -66,794.41
No.of Shares 124.35

Equity Value per Share -537.14

Share Price 2,962

Discount/ Premium -5.51x
 Comparable Company Valuation
Amount in Crores
Market Data Financials Valuation
Share Share Equity Net Enterprise Net
Company Ticker Price Outstanding Value Debt Value Revenue EBITDA Income EV/Revenue EV/EBITDA P/E
M&M M&M 2,888.7 124.4 3,59,209.8 94,612.8 4,53,822.6 1,39,078.3 28,189.8 12,269.8 3.3x 16.1x 29.3x
Tata Motors TATAMOTORS 983.4 332.4 3,26,865.5 61,455.8 3,88,321.4 4,37,927.8 66,188.1 31,806.8 0.9x 5.9x 10.3x
Maruti Suzuki MARUTI 12,229.0 31.4 3,84,479.8 -2,708.8 3,81,771.0 1,41,858.2 22,873.9 13,488.2 2.7x 16.7x 28.5x
Bajaj Auto BAJAJ-AUTO 9,615.5 27.9 2,68,463.4 956.4 2,69,419.8 44,870.4 10,465.2 7,708.2 6.0x 25.7x 34.8x
Eicher Motors EICHERMOT 4,896.0 27.4 1,34,149.0 273.1 1,34,422.2 16,535.8 5,850.5 4,001.0 8.1x 23.0x 33.5x
High 8.1x 25.7x 34.8x
75th Percentile 6.0x 23.0x 33.5x
Average 4.2x 17.5x 27.3x
Median 3.3x 16.7x 29.3x
25th Percentile 2.7x 16.1x 28.5x
Low 0.9x 5.9x 10.3x

Mahindra & Mahindra LTD Comparable EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 453822.6 470494.3 4,53,822.6
Net Debt 94,612.8 94,612.8 94,612.8
Impiled Market Value 3,59,209.8 3,75,881.5 3,59,209.8
Share Outstanding 124.4 124.4 124.4
Implied Value per Share 2888.7 3022.8 2888.7
Overvalued Undervalued Overvalued
Source: The Valuation School, Screener,in
 Value at Risk (VAR) & Monte Carlo Simulation
Date Adj Close Return Shorted Return Replication Simulated Returns Calculation of Value at Risk - M&M
25-11-1998 27.66984 -0.54918 1.102548095 1 0.013184486
07-03-1997 61.37621 -0.19193 1.07400285 2 -0.099594945 Historical Approach
23-11-1999 75.95429 0.979378 1.068004879 3 -0.108189214 Mean 0.05%
29-03-1999 38.37281 -0.28574 1.036486855 4 0.008279812 Std Deviation 5.27%
12-11-1996 53.7235 -0.11009 1.028900161 5 0.002502376 Min -50.35%
08-11-1999 60.36969 0.169616 1.02649162 6 0.086811454 Max 110.25%
14-04-1997 51.61496 0.382711 0.983109266 7 0.018723631 CMP 2,920.7
27-04-1999 37.32882 -0.10245 0.980189257 8 -0.047594069
02-03-1999 41.58963 0.53125 0.944444502 9 0.067241589 Percentile Confidence VAR % Stock Price VAR (INR)
25-12-1998 27.16058 -0.80329 0.934703715 10 -0.052650487 10.00% 90.0% -2.79% 3002.1 -81.4
28-07-2005 138.0758 4.559738 0.93439017 11 -0.030030393 5.00% 95.0% -3.90% 3034.5 -113.8
04-11-1998 24.83496 -0.05115 0.922470982 12 -0.102645089 1.00% 99.0% -7.35% 3135.3 -214.6
02-01-1996 26.17383 -0.65402 0.567910142 13 -0.019296707 0.50% 99.5% -8.13% 3158.1 -237.4
23-10-2008 75.65186 3.236315 0.185230225 14 0.009516942
21-07-2000 17.85794 0.542302 0.182641912 15 0.003155958 Calucation of Monte Carlo Simulation
12-03-2001 11.57875 -0.8186 0.147856237 16 0.065865142 Mean 0.05%
24-10-2008 63.82883 0.416611 0.146871292 17 0.012321719 Std Deviation 5.29%
14-05-2004 45.0574 0.950152 0.141315645 18 -0.092735215 Min -19.97%
10-05-2000 23.10456 0.051828 0.136284819 19 0.071351277 Max 21.73%
31-05-2000 21.9661 0.080295 0.136270283 20 -0.030162342 CMP 2,920.7
11-05-2000 20.33342 -0.75925 0.12665042 21 0.014051637
22-10-2008 84.45812 14.85832 0.116405169 22 0.052104824 Percentile Confidence VAR % Stock Price VAR (INR)
14-09-2001 5.325794 -0.42509 0.108445134 23 0.132718821 10.00% 90.0% -6.72% 3117.0 -196.3
17-05-2002 9.263654 -0.97227 0.103845946 24 0.037490929 5.00% 95.0% -8.77% 3176.7 -256.0
18-03-2020 334.1252 18.32621 0.10248242 25 -0.022933155 1.00% 99.0% -12.45% 3284.4 -363.7
31-07-2000 17.28871 -0.94444 0.100561831 26 0.122579283 0.50% 99.5% -13.59% 3317.6 -396.9
20-03-2020 311.1686 0.656319 0.099523046 27 -0.03163786
07-08-2009 187.8676 5.709191 0.099131835 28 -0.042331189
28-03-1997 28.00152 0.503336 0.095382182 29 -0.025021701
01-06-1998 18.62626 -0.78469 0.095076246 30 -0.069287691
10-11-2008 86.50996 -0.79086 0.094737001 31 -0.003916369
13-03-2020 413.6536 1.864721 0.094563641 32 -0.080423618
21-01-2008 144.3957 -0.14046 0.093949713 33 -0.0877279
30-03-2007 167.9924 1.783298 0.093763369 34 0.134171555
01-12-2008 60.35733 -0.42915 0.093210173 35 -0.020576052
30-06-2008 105.7322 -0.62639 0.091610043 36 -0.06577903
23-03-2020 283.0032 0.79734 0.0907063 37 -0.018170213
18-01-2008 157.4567 9.874097 0.090452629 38 -0.035889416
24-07-1998 14.47998 -0.74463 0.086970279 39 0.020966318
 MAHINDRA & MAHINDRA LTD
(M&M | BSE Code: 500520
INR 2928.6
52 Week (High - INR 3013.50& Low-INR 1368.50)

About the Company

Mahindra & Mahindra Ltd is one of the most diversified automobile company in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors &
earthmovers. 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. It was
incorporated in 1945 by Ghulam Mohammad and two Mahindra Brothers (KC & JC Mahindra) and was later renamed as Mahindra & Mahindra in 1948

Financial Summary

Revenue (INR Crs) Net Profit (INR Crs) Total Assets (INR Crs)
1,39,078 10,282 11,269 2,20,292
1,21,269 1,88,336
1,65,342 1,68,678
90,171 6,577
74,278

1,812

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Return on Equity (%) Return on Assets (%) Financial Leverage

12.86% 5.46%
11.94% 5.12% 2.7x
9.68%
3.90%
2.5x

2.4x 2.3x
2.94% 1.10%

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Recent Updates
• For the quarter ending March 2024 (Q4 FY24), Mahindra & Mahindra reported a net profit increase of 32% year-over-year, reaching ₹2,038
crore. Revenue grew by 11%, totaling ₹24,200 crore. The company declared a dividend of ₹21.10 per share, with the record date set for July 5,
2024.
• The board approved an investment of ₹12,000 crore in its electric vehicle unit, Mahindra Electric Automobile Ltd, over the next three years,
aimed at expanding its EV por olio and capabili es .
• Mahindra XUV 3XO has launched on April 29, 2024, the XUV 3XO is a compact SUV designed to appeal to modern urban drivers. It features a bold
design, premium interiors, and advanced safety technologies. It aims to set new benchmarks in performance and efficiency with its range of
turbocharged engines and smart driving modes.
• In 2024, Mahindra's Farm Equipment sector sold 35,237 units in India. The Automotive sector sold 43,218 SUVs, reflecting a 31% growth
compared to the previous year
 Dupont Analysis - Return on Equity & Return on Assets

Return on Equity (ROE)

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 7510.4 5315.5 127.0 1812.5 6577.3 10281.5 11268.6
Average Shareholder Equity 51664.0 58371.0 59961.0 61566.6 67913.6 79927.1 94373.4
Return on Equity 14.54% 9.11% 0.21% 2.94% 9.68% 12.86% 11.94%

ROE - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 7510.4 5315.5 127.0 1812.5 6577.3 10281.5 11268.6
Revenue 92094.0 104720.7 75381.9 74277.8 90170.6 121268.6 139078.3
Net Profit Margin (A) 8.16% 5.08% 0.17% 2.44% 7.29% 8.48% 8.10%

Revenue 92094.0 104720.7 75381.9 74277.8 90170.6 121268.6 139078.3

Average Total Asstes 125102.4 149129.0 163802.4 165342.2 168678.4 188335.8 220291.9
Asset Turnover Ratio (B) 0.7x 0.7x 0.5x 0.4x 0.5x 0.6x 0.6x

Average Total Asstes 125102.4 149129 163802.4 165342.2 168678.4 188335.8 220291.9
Average Shareholder Equity 51664.02 58371.01 59961.02 61566.58 67913.6 79927.11 94373.45
Equity Multiplier (C) 2.4x 2.6x 2.7x 2.7x 2.5x 2.4x 2.3x

Return on Equity (A*B*C) 14.54% 9.11% 0.21% 2.94% 9.68% 12.86% 11.94%

Return on Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 7510.4 5315.5 127.0 1812.5 6577.3 10281.5 11268.6
Average Total Asstes 125102.4 149129.0 163802.4 165342.2 168678.4 188335.8 220291.9
Return on Assets 6.00% 3.56% 0.08% 1.10% 3.90% 5.46% 5.12%

ROA - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 7510.4 5315.5 127.0 1812.5 6577.3 10281.5 11268.6
Revenue 92094.0 104720.7 75381.9 74277.8 90170.6 121268.6 139078.3
Net Profit Margin (A) 8.16% 5.08% 0.17% 2.44% 7.29% 8.48% 8.10%

Revenue 92094.0 104720.7 75381.9 74277.8 90170.6 121268.6 139078.3

Average Total Asstes 125102.4 149129.0 163802.4 165342.2 168678.4 188335.8 220291.9
Asset Turnover Ratio (B) 0.7x 0.7x 0.5x 0.4x 0.5x 0.6x 0.6x

Return on Assets (A*B) 6.00% 3.56% 0.08% 1.10% 3.90% 5.46% 5.12%

Dupont Summary
• Return on Equity (ROE) of Mahindra & Mahindra Ltd as on FY 2019 is 9.11% which decrease by 8.89% in FY 2020
due to Covid 19 , which is very low (0.21%) but in FY 2021 it started increase and in F.Y 23 it reach on 12.86%
and now currently it is 11.94% as on March 2024.
• ROE has seen many fluctuation has past 7 years from 14.54% to 11.94%. While the company was able to
maintain the net margins from 8.16% in FY 2018 to 8.10% in FY 2024. Assets efficiency of the company is
constantly maintained throughout the period, the reason for fluctuation in ROE is reduction of financial
leverage in the company from 2.4x in FY 2018 to 2.3x in FY 2024.
• Revenue also fluctuates, reflecting changes in business activity and economic conditions.
• Return on Equity (ROE) of Mahindra & Mahindra Ltd as on FY 2018 is 6.00% which decrease by 3.56% in FY 2019
and from FY 2020 it decreased 0.08% due to Covid 19 , which is very low but in FY 2021 it started increase and
in F.Y 23 it reach on 5.46% and now currently it is 5.12% as on March 2024.
• ROA varies across the years, reflecting changes in profitability relative to the size of the asset base. After a low
in Mar-20, ROA improves consistently, indicating better asset utilization efficiency and profitability.

Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only.
The author of the report is not liable for any losses due to actions taken basis this report. It is advisable to
consult SEBI registered reasearch analyst before making any investments
 MAHINDRA & MAHINDRA LTD
(M&M | BSE Code: 500520
INR 2928.6
52 Week (High - INR 3013.50& Low-INR 1368.50)

Altman's Z Score Analysis

The Altman Z-Score is a financial model created by Edward Altman in 1968 to predict the probability of a company going bankrupt. It uses five financial ratios that combine
liquidity, profitability, leverage, solvency, and activity to give a single score. These ratios are: working capital to total assets, retained earnings to total assets, EBIT to total assets,
market value of equity to total liabilities, and sales to total assets. The Z-Score is calculated with the formula: Z= 1.2X1+1.4X2+3.3X3+0.6X4+1.0X5. A score above 2.99 indicates a
safe zone with a low risk of bankruptcy, a score between 1.81 and 2.99 places the company in the grey zone with a moderate risk, and a score below 1.81 signals a distress zone
with a high risk of bankruptcy. This model is particularly useful for investors and creditors to assess the financial health of manufacturing companies

Financial Summary

Working Capital (INR Crs) Total Assets (INR Crs) Total Assets (INR Crs)
1,01,439 2,36,301 2,36,301
2,04,283 2,04,283
82,232 1,72,388 1,72,388
1,64,968 1,64,968
64,177 61,946

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

EBIT (INR Crs) Market Cap (INR Crs) Long term Liabilities (INR Crs)
106625.5
20168.2 238919.9 92246.9
15928.5 80624.8 77605.2

11175.4 144084.3
8108.9 98865.5 100270.3

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Recent Updates
• For the quarter ending March 2024 (Q4 FY24), Mahindra & Mahindra reported a net profit increase of 32% year-over-year, reaching ₹2,038 crore. Revenue grew by 11%,
totaling ₹24,200 crore. The company declared a dividend of ₹21.10 per share, with the record date set for July 5, 2024.
• The board approved an investment of ₹12,000 crore in its electric vehicle unit, Mahindra Electric Automobile Ltd, over the next three years, aimed at expanding its EV
por olio and capabili es .
• Mahindra XUV 3XO has launched on April 29, 2024, the XUV 3XO is a compact SUV designed to appeal to modern urban drivers. It features a bold design, premium
interiors, and advanced safety technologies. It aims to set new benchmarks in performance and efficiency with its range of turbocharged engines and smart driving modes.
• In 2024, Mahindra's Farm Equipment sector sold 35,237 units in India. The Automotive sector sold 43,218 SUVs, reflecting a 31% growth compared to the previous year
 Altman's Z Score Analysis Calculation

Working Capital / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Working Capital 46204.1 58821.0 66305.5 64176.8 61946.1 82231.7 101439.3
Total Assets 136369.3 161888.7 165716.1 164968.3 172388.5 204283.1 236300.7
Working Capital / Total Assets (A) 33.88% 36.33% 40.01% 38.90% 35.93% 40.25% 42.93%

Retained Earnings / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Retained Earnings 3402.1 3140.5 0.0 0.0 3712.1 6545.5 7607.2
Total Assets 136369.3 161888.7 165716.1 164968.3 172388.5 204283.1 236300.7
Retained Earning / Total Assets (B) 2.49% 1.94% 0.00% 0.00% 2.15% 3.20% 3.22%

EBIT / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
EBIT 9946.2 11215.7 6791.1 8108.9 11175.4 15928.5 20168.2
Total Asstes 136369.3 161888.7 165716.1 164968.3 172388.5 204283.1 236300.7
EBIT / Total Assets (C) 7.29% 6.93% 4.10% 4.92% 6.48% 7.80% 8.53%

Market Cap / Long term Liabilites

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Market Cap 91860.0 83779.2 35425.0 98865.5 100270.3 144084.3 238919.9
Long term Liabilites 55897.9 70848.3 82092.3 80624.8 77605.2 92246.9 106625.5
Market Cap / Long Term Liabilites (D) 164.34% 118.25% 43.15% 122.62% 129.21% 156.19% 224.07%

Sales / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Total Sales 92094.0 104720.7 75381.9 74277.8 90170.6 121268.6 139078.3
Total Assets 136369.3 161888.7 165716.1 164968.3 172388.5 204283.1 236300.7
Sales /Total Assets (E) 67.53% 64.69% 45.49% 45.03% 52.31% 59.36% 58.86%

Altman's Z Score
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Final Score 2.34 2.05 1.33 1.82 1.97 2.32 2.77
Finacial Stability Grey Zone Grey Zone Distressed Grey Zone Grey Zone Grey Zone Grey Zone

Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not
liable for any losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any
investments