Curious about Mahindra and Mahindra’s future stock performance? In this analysis, we’ll break down the expected Mahindra and Mahindra share price targets in 2024, 2025, and beyond to 2030.
As a major player in the automotive industry and a key entity within the Mahindra Group, M&M’s stock outlook is crucial for investors. Join us as we simplify the factors influencing M&M’s share prices, providing a clear roadmap for potential investors.
About Mahindra & Mahinda Ltd.
Mahindra & Mahindra Limited (M&M) is a Mumbai-based multinational automotive manufacturing corporation, established in 1945 as Mahindra & Mohammed before adopting its current name. As a key entity within the Mahindra Group, M&M stands as one of India’s foremost vehicle manufacturers by production volume.
Notably, its subsidiary, Mahindra Tractors, holds the distinction of being the largest tractor manufacturer globally in terms of volume. Recognized for its prominence, M&M secured the 17th position among India’s leading companies in the Fortune India 500 list for 2018. In the Indian market, it faces competition primarily from Maruti Suzuki India and Tata Motors.
Company Profile
| Company Name | Mahindra & Mahindra Limited |
| Company Type | Public |
| Traded As | BSE: 500520 NSE: M&M |
| ISIN | INE101A01026 |
| Industry | Automotive |
| Founded | 2 October 1945; 78 years ago |
| Founders | J. C. Mahindra K. C. Mahindra Malik Ghulam Muhammad |
| Headquarters | Mumbai, Maharashtra, India |
| Area Served | Worldwide |
| Key People | Anand Mahindra (Chairman) Dr. Anish Shah (MD & CEO) Rajesh Jejurikar (Executive Director AFS) |
| Products | Automobiles, Commercial vehicles, Tractors, Motorcycles |
| Production Output | 14,076,043 vehicles (2022) |
| Revenue | ₹122,475 crore (US$15 billion) (FY2023) |
| Operating Income | ₹12,554 crore (US$1.6 billion) (FY2023) |
| Net Income | ₹11,187 crore (US$1.4 billion) (FY2023) |
| Total Assets | ₹205,891 crore (US$26 billion) (FY2023) |
| Total Equity | ₹67,082 crore (US$8.4 billion) (FY2023) |
| Number of Employees | 140,619 (2022) |
| Parent | Mahindra Group |
| Subsidiaries | Mahindra Last Mile Mobility, Mahindra Tractors, Mahindra 2 Wheelers, Mahindra Truck and Bus Division, BSA Company, Yezdi, Classic Legends Motorcycles, Jawa Moto, Automobili Pininfarina, Pininfarina |
| Website | auto.mahindra.com |
Mahindra & Mahinda Ltd. Fundamental Analysis
| Market Cap | ₹ 2,28,255.93 Cr. |
| Enterprise Value | ₹ 2,28,417.91 Cr. |
| Number of Shares | 124.35 Cr. |
| P/E | 22.32 |
| P/B | 4.55 |
| Face Value | ₹ 5 |
| Dividend Yield | 0.89 % |
| Book Value (TTM) | ₹ 402.99 |
| Cash | ₹ 4,481.75 Cr. |
| Debt | ₹ 4,643.73 Cr. |
| Promoter Holding | 19.32 % |
| EPS (TTM) | ₹ 82.25 |
| Sales Growth | 47.02% |
| ROE | 16.16 % |
| ROCE | 18.53% |
| Profit Growth | 34.47 % |
Mahinda & Mahindra ltd. Profit & Loss – Last 5 Years
| Profit & Loss | MAR 2019 | MAR 2020 | MAR 2021 | MAR 2022 | MAR 2023 |
|---|---|---|---|---|---|
| Net Sales | 53,614 Cr. | 45,487.78 Cr. | 44,629.87 Cr. | 57,786.94 Cr. | 84,960.26 Cr. |
| Total Expenditure | 46,974.44 Cr. | 39,689.72 Cr. | 37,672.39 Cr. | 50,759.47 Cr. | 74,517.87 Cr. |
| Operating Profit | 6,639.56 Cr. | 5,798.06 Cr. | 6,957.48 Cr. | 7,027.47 Cr. | 10,442.39 Cr. |
| Other Income | 1,784.95 Cr. | 1,763.71 Cr. | 1,447.24 Cr. | 2,347.69 Cr. | 2,727.66 Cr. |
| Interest | 209.37 Cr. | 209.13 Cr. | 644.07 Cr. | 520.12 Cr. | 455.27 Cr. |
| Depreciation | 1,860.40 Cr. | 2,222.63 Cr. | 2,369.92 Cr. | 2,498.39 Cr. | 3,154.46 Cr. |
| Exceptional Items | -29.73 Cr. | -2,013.98 Cr. | -3,087.28 Cr. | -208.67 Cr. | -1,429.54 Cr. |
| Profit Before Tax | 6,325.01 Cr. | 3,116.03 Cr. | 2,303.45 Cr. | 6,147.98 Cr. | 8,130.78 Cr. |
| Tax | 1,528.97 Cr. | 1,785.48 Cr. | 1,319.29 Cr. | 1,278.10 Cr. | 1,582.14 Cr. |
| Net Profit | 4,796.04 Cr. | 1,330.55 Cr. | 984.16 Cr. | 4,869.88 Cr. | 6,548.64 Cr. |
| Adjusted EPS (Rs.) | 40.25 Rs. | 11.15 Rs. | 8.24 Rs. | 40.70 Rs. | 54.66 Rs. |
For 2024, 2025, and 2030, we consider factors like the company’s financial health, growth prospects, and industry trends. We also look at broader market conditions and economic forecasts to make their predictions.
| Month | Target (Rs.) |
|---|---|
| January 2024 | ₹1728.13 |
| February 2024 | ₹1753.02 |
| March 2024 | ₹1728.33 |
| April 2024 | ₹1715.97 |
| May 2024 | ₹1757.97 |
| June 2024 | ₹1758 |
| July 2024 | ₹1933.43 |
| August 2024 | ₹1933.55 |
| September 2024 | ₹1933.51 |
| October 2024 | ₹1933.75 |
| November 2024 | ₹1933.8 |
| December 2024 | ₹1933.62 |
Starting with 2024, M&M is poised for a bullish trajectory, with an initial target of ₹1728.13. As the year progresses, mid-year projections hint at potential fluctuations, with a peak target of ₹1933.43, reflecting market volatility and bullish sentiment.
Also Read: Hindalco Share Price Target 2024, 2025, 2030: A Strategic Analysis
| Month | Target (Rs.) |
|---|---|
| January 2025 | ₹2055.37 |
| February 2025 | ₹2080.34 |
| March 2025 | ₹2055.65 |
| April 2025 | ₹2043.25 |
| May 2025 | ₹2043.33 |
| June 2025 | ₹2043.34 |
| July 2025 | ₹2043.54 |
| August 2025 | ₹2043.61 |
| September 2025 | ₹2043.83 |
| October 2025 | ₹2043.86 |
| November 2025 | ₹2043.9 |
| December 2025 | ₹2044.15 |
In 2025, M&M’s stock is anticipated to maintain its upward momentum, aiming for an initial target of ₹2055.37. As the year unfolds, a mid-year target of ₹2043.54 is projected, paving the way for a year-end target of ₹2044.15, supported by favorable market conditions.
Also Read: Mahan Industries Share Price Target 2024, 2025 to 2030
| Month | Target Price (Rs.) |
|---|---|
| January | ₹2904.48 |
| February | ₹2929.13 |
| March | ₹2904.41 |
| April | ₹2891.85 |
| May | ₹2891.78 |
| June | ₹2891.78 |
| July | ₹2891.88 |
| August | ₹2891.97 |
| September | ₹2891.78 |
| October | ₹2891.88 |
| November | ₹2891.73 |
| December | ₹2891.57 |
Looking ahead to 2026, M&M may witness temporary declines early in the year, followed by a resurgence, targeting ₹2196.68 by mid-year and potentially reaching ₹2196.98 by year-end. In subsequent years, including 2027 to 2030, M&M is expected to navigate through mixed market trends, with steady growth trajectories and occasional fluctuations, ultimately culminating in substantial year-end targets.
Also Read: Praveg Share Price Target 2024, 2025, 2030, 2040, 2050: A Complete Stock Price Guide
Stock prices are influenced by a multitude of factors, including economic conditions, market sentiment, geopolitical events, technological advancements, and company performance, among others. Predicting how these factors will evolve over several decades is extremely challenging and prone to error.
However, if we consider historical growth rates, industry trends, and potential future developments, we can offer very rough, speculative estimates. Please remember that these targets should be taken with a substantial grain of salt and are for illustrative purposes only:
- Possible Target for M&M Share Price in 2040: ₹10,000 – ₹15,000 (assumed long-term growth and market conditions).
- Possible Target for M&M Share Price in 2050: ₹20,000 – ₹30,000 (assuming sustained growth and favorable market dynamics over the long term).
Also Read: Tata Motors Share Price Target 2024, 2025, 2030, 2040 & 2050
2024:
- Motilal Oswal: Bullish, with a target price of ₹2000 by December 2024. They cite strong SUV demand, improving tractor sales, and potential EV growth as key drivers.
- CLSA: Moderately bullish, with a target price of ₹1850 by December 2024. They acknowledge potential headwinds like rising input costs but believe M&M’s cost-cutting measures and new product launches will mitigate them.
- Edelweiss: Cautiously optimistic, with a target price of ₹1800 by December 2024. They highlight concerns about semiconductor shortages and rising interest rates but see M&M’s strong brand and rural market presence as positive factors.
2025 and Beyond:
- Kotak Mahindra Securities: Bullish, with a target price of ₹2400 by December 2025. They expect M&M to benefit from continued SUV demand, successful EV launches, and expansion into new segments like electric three-wheelers.
- ICICI Direct: Moderately bullish, with a target price of ₹2200 by December 2025. They see potential challenges in the form of competition and regulatory changes but believe M&M’s focus on innovation and cost management will help them navigate these obstacles.
- JPMorgan Chase: Neutral, with a target price of ₹1900 by December 2025. They acknowledge M&M’s strong fundamentals but express concerns about the overall Indian auto market and potential economic slowdown.
The Indian auto industry ranks among the world’s top 5, with strong export potential supported by government initiatives. But can this momentum be sustained? Let’s delve deeper into Mahindra & Mahindra’s stock performance for a comprehensive analysis.
Revenue, the lifeline of the auto sector, saw an impressive growth of 47.02% for Mahindra & Mahindra, with latest quarterly sales reaching Rs 25,288.51 Cr. However, a closer look at the inventory turnover ratio, standing at 11.86 times, suggests potential inefficiencies in inventory management.
Profit surged by 34.47% for Mahindra & Mahindra, reaching Rs 6,548.64 Cr, indicating promising prospects fueled by new government permits and rising demand.
The operating profit in the latest quarter stood at Rs 3,236.42 Cr, offering insights into the company’s operational efficiency and financial decision-making.
With an average ROE of 16.16%, Mahindra & Mahindra showcases solid financial performance, complemented by a low Debt to Equity ratio of 0.11, indicating prudent financial management.
Despite a dividend payout of Rs 16.25 per share, translating to a low dividend yield of 0.89%, Mahindra & Mahindra’s commitment to sharing profits with shareholders is evident.
Promoter holding stands at 19.32%, with negligible pledging at 0.06%, reflecting stability and confidence in the company’s performance.
Currently, Mahindra & Mahindra commands a PE multiple of 22.32, compared to a 5-year average of 35.95, suggesting potential undervaluation.
At Rs 1,835.55, Mahindra & Mahindra’s current share price prompts further evaluation using valuation calculators to determine its true value in the market.
Strengths
- Over the past three years, the company has demonstrated robust profit growth of 70.10%.
- The company has maintained strong revenue growth, averaging 23.15% over the past three years.
- With an interest coverage ratio of 18.86, the company exhibits healthy financial stability.
- The company’s PEG ratio stands at an impressive 0.65, indicating favorable valuation relative to its growth rate.
- Demonstrating efficiency, the company operates with a negative cash conversion cycle of -34.46 days.
- Effective cash flow management is evidenced by a CFO/PAT ratio of 1.85.
- The company displays significant operating leverage, with an average operating leverage of 3.64.
FAQs
Does M&M Pay Dividends?
Yes, Mahindra & Mahindra Ltd (M&M) does pay dividends. In the last financial year, the company paid a total dividend of ₹37.35 per share, including a ₹21.10 dividend declared in the quarter ending March 2024. The current dividend yield is 1.18%.
