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Mahindra & Mahindra

BATS-CHIXE:MHIDL
Snowflake Description

Established dividend payer with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MHIDL
BATS-CHIXE
₹349B
Market Cap
  1. Home
  2. GB
  3. Automobiles
Company description

Mahindra & Mahindra Limited engages in the automotive and farm equipment businesses in India and internationally. The last earnings update was 59 days ago. More info.


Add to Portfolio Compare Print
  • Mahindra & Mahindra has significant price volatility in the past 3 months.
MHIDL Share Price and Events
7 Day Returns
-3.3%
BATS-CHIXE:MHIDL
3.4%
Europe Auto
0.1%
GB Market
1 Year Returns
-61.4%
BATS-CHIXE:MHIDL
-32.8%
Europe Auto
-23.6%
GB Market
MHIDL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mahindra & Mahindra (MHIDL) -3.3% -43.4% -50.9% -61.4% -62.9% -62.7%
Europe Auto 3.4% -20.1% -33.3% -32.8% -30.6% -52.1%
GB Market 0.1% -15.5% -27% -23.6% -24.3% -23.5%
1 Year Return vs Industry and Market
  • MHIDL underperformed the Auto industry which returned -32.8% over the past year.
  • MHIDL underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -23.6% over the past year.
Price Volatility
MHIDL
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Mahindra & Mahindra undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mahindra & Mahindra to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mahindra & Mahindra.

BATS-CHIXE:MHIDL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in INR ₹ 9.5
Payout Ratio Company Filings (2019-12-31) 1925.2%
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:MHIDL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 7.9%
Auto Unlevered Beta Simply Wall St/ S&P Global 0.52
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.521 (1 + (1- 35%) (236.95%))
0.814
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.814 * 7.85%)
6.92%

Discounted Cash Flow Calculation for BATS-CHIXE:MHIDL using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Mahindra & Mahindra is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

BATS-CHIXE:MHIDL Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= ₹9.5 / (6.92% - 0.53%)
₹0.02
BATS-CHIXE:MHIDL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:MHIDL represents 0.0115x of NSEI:M&M
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.0115x
Value per Share
(Listing Adjusted, USD)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 148.75 x 0.0115
$1.71
Value per share (USD) From above. $1.71
Current discount Discount to share price of $3.69
= -1 x ($3.69 - $1.71) / $1.71
-115.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Mahindra & Mahindra is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mahindra & Mahindra's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mahindra & Mahindra's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:MHIDL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹19.55
NSEI:M&M Share Price ** NSEI (2020-04-01) in INR ₹321
Europe Auto Industry PE Ratio Median Figure of 14 Publicly-Listed Auto Companies 8.68x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mahindra & Mahindra.

BATS-CHIXE:MHIDL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:M&M Share Price ÷ EPS (both in INR)

= 321 ÷ 19.55

16.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mahindra & Mahindra is overvalued based on earnings compared to the Europe Auto industry average.
  • Mahindra & Mahindra is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Mahindra & Mahindra's expected growth come at a high price?
Raw Data
BATS-CHIXE:MHIDL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
Europe Auto Industry PEG Ratio Median Figure of 9 Publicly-Listed Auto Companies 0.35x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 517 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Mahindra & Mahindra, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Mahindra & Mahindra's assets?
Raw Data
BATS-CHIXE:MHIDL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹371.27
NSEI:M&M Share Price * NSEI (2020-04-01) in INR ₹321
Europe Auto Industry PB Ratio Median Figure of 23 Publicly-Listed Auto Companies 0.63x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.11x
BATS-CHIXE:MHIDL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:M&M Share Price ÷ Book Value per Share (both in INR)

= 321 ÷ 371.27

0.86x

* Primary Listing of Mahindra & Mahindra.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mahindra & Mahindra is overvalued based on assets compared to the Europe Auto industry average.
X
Value checks
We assess Mahindra & Mahindra's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check)
  5. Mahindra & Mahindra has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Mahindra & Mahindra expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.2%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is Mahindra & Mahindra expected to grow at an attractive rate?
  • Mahindra & Mahindra's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Mahindra & Mahindra's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Mahindra & Mahindra's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:MHIDL Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:MHIDL Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 11.2%
BATS-CHIXE:MHIDL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts -1.1%
Europe Auto Industry Earnings Growth Rate Market Cap Weighted Average 11.6%
Europe Auto Industry Revenue Growth Rate Market Cap Weighted Average 0.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:MHIDL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:MHIDL Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 977,752 1
2021-03-31 920,909 1
2020-04-07
2020-03-31 934,911 1
BATS-CHIXE:MHIDL Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 1,027,595 21,549
2019-09-30 1,036,922 -37,916 32,656
2019-06-30 1,056,683 45,224
2019-03-31 1,056,394 -43,473 53,155
2018-12-30 1,026,584 57,234
2018-09-30 990,454 79,874
2018-06-30 958,885 77,730
2018-03-31 925,964 6,819 75,104
2017-12-31 858,557 72,180
2017-03-31 844,381 1,831 36,980

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mahindra & Mahindra's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
  • Mahindra & Mahindra's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BATS-CHIXE:MHIDL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Mahindra & Mahindra Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:MHIDL Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 37.07 37.07 37.07 1.00
2021-03-31 32.72 32.72 32.72 1.00
2020-04-07
2020-03-31 41.60 41.60 41.60 1.00
BATS-CHIXE:MHIDL Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 19.55
2019-09-30 29.76
2019-06-30 41.41
2019-03-31 48.91
2018-12-30 52.68
2018-09-30 73.54
2018-06-30 71.60
2018-03-31 69.20
2017-12-31 66.54
2017-03-31 34.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mahindra & Mahindra is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mahindra & Mahindra's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mahindra & Mahindra has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Mahindra & Mahindra performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mahindra & Mahindra's growth in the last year to its industry (Auto).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mahindra & Mahindra's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Mahindra & Mahindra's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Mahindra & Mahindra's 1-year earnings growth is negative, it can't be compared to the Europe Auto industry average.
Earnings and Revenue History
Mahindra & Mahindra's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mahindra & Mahindra Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:MHIDL Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,027,594.70 21,549.10 151,802.10
2019-09-30 1,036,922.00 32,655.90 151,270.50
2019-06-30 1,056,682.70 45,223.80 151,584.80
2019-03-31 1,056,394.30 53,154.60 149,792.20
2018-12-30 1,026,583.70 57,233.90 128,314.20
2018-09-30 990,453.70 79,873.90 128,314.20
2018-06-30 958,885.10 77,730.10 157,036.40
2018-03-31 925,963.70 75,103.90 128,350.60
2017-12-31 858,557.20 72,180.40 113,932.10
2017-03-31 844,381.20 36,980.40 113,896.00
2016-03-31 762,851.70 30,660.60 100,881.60
2015-03-31 710,533.10 31,374.70 92,028.70
2014-03-31 734,733.20 46,669.30 130,243.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mahindra & Mahindra has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mahindra & Mahindra used its assets more efficiently than the Europe Auto industry average last year based on Return on Assets.
  • Mahindra & Mahindra's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mahindra & Mahindra's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mahindra & Mahindra has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Mahindra & Mahindra's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mahindra & Mahindra's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mahindra & Mahindra is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mahindra & Mahindra's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Mahindra & Mahindra's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mahindra & Mahindra Company Filings, last reported 3 months ago.

BATS-CHIXE:MHIDL Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 492,250.00 827,494.40 126,594.10
2019-09-30 492,250.00 827,494.40 126,594.10
2019-06-30 483,439.80 708,483.00 150,934.70
2019-03-31 483,439.80 708,483.00 150,934.70
2018-12-30
2018-09-30
2018-06-30 450,256.60 558,979.20 121,820.10
2018-03-31 450,256.60 558,979.20 121,820.10
2017-12-31
2017-03-31 360,948.90 487,619.10 95,958.30
2016-03-31 324,128.50 415,529.30 83,379.00
2015-03-31 317,486.10 382,755.80 70,399.80
2014-03-31 290,399.60 354,084.70 87,527.70
  • Mahindra & Mahindra's level of debt (168.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (120.9% vs 168.1% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Mahindra & Mahindra's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mahindra & Mahindra has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Mahindra & Mahindra's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.65%
Current annual income from Mahindra & Mahindra dividends. Estimated to be 2.96% next year.
If you bought $2,000 of Mahindra & Mahindra shares you are expected to receive $53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mahindra & Mahindra's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.59%).
  • Mahindra & Mahindra's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.08%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:MHIDL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Auto Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 5.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.6%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:MHIDL Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 10.00 1.00
2021-03-31 9.00 1.00
2020-04-07
2020-03-31 9.00 1.00
BATS-CHIXE:MHIDL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-29 8.500 1.619
2018-05-29 7.500 0.980
2017-05-30 6.500 0.901
2016-05-30 6.000 0.908
2015-05-29 6.000 0.954
2014-08-11 7.000 1.109
2013-06-10 6.250 1.298
2013-05-30 6.250 1.273
2012-07-10 6.250 1.456
2012-05-30 6.250 1.808
2011-05-30 5.250 1.477
2010-07-28 4.375 1.247
2009-07-15 2.500 0.994
2009-05-28 2.500 1.391

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Mahindra & Mahindra's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess Mahindra & Mahindra's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mahindra & Mahindra afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mahindra & Mahindra has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Mahindra & Mahindra's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pawan Goenka
COMPENSATION ₹121,922,000
AGE 65
TENURE AS CEO 3.4 years
CEO Bio

Dr. Pawan Kumar Goenka has been the Managing Director of Mahindra & Mahindra Limited since November 12, 2016 and serves as Chief Executive Officer since April 1, 2020. Dr. Goenka served as Member of Group Executive Board and Whole-time Director at Mahindra & Mahindra Limited until April 1, 2020. Dr. Goenka served as the President of M&M automotive sector at Mahindra Navistar Engines Pvt. Ltd. He serves as the President at Society of Indian Automobile Manufacturers. He serves as the President of Automotive & Farm Equipment Sectors at EPC Industrie Ltd. He serves as Group President of Auto & Farm Sector at Mahindra & Mahindra Limited. Dr. Goenka served as President Automotive & Farm Equipment Sector at Mahindra & Mahindra Ltd. until November 12, 2016. Dr. Goenka serves as the Chairman of Mahindra Electric Mobility Limited (formerly known as Mahindra Reva Electric Vehicles Pvt. Ltd.). He serves as the Chairman of the Board of Mahindra Navistar Engines Pvt. Ltd. He serves as the Chairman of Mahindra Vehicle Manufacturers Limited. He serves as the Chairman of Ssangyong Motor Co. since March 17, 2011. He serves as a Director at Mahindra First Choice Wheels Ltd. He serves as Member of Group Executive Board of Mahindra & Mahindra Ltd. He serves as Member of Group Executive Board of Mahindra & Mahindra Limited. He serves as a Director of Mahindra Engineering Services Limited and Mahindra Navistar Automotive Limited. He serves as a Director of Mahindra Automobile Distributor Private Limited, Mahindra Engineering Design & Development Company Ltd., Mahindra Intertrade Ltd., Mahindra International Ltd. and Plexion Technologies (India) Pvt. Ltd. He also serves as an Additional Director of Swaraj Automotives Limited. He serves as a Member of Audit Committee and Member of Remuneration Committee of Mahindra Automobile Distributor Private Limited. Dr. Goenka served as President of Automotive, Farm Equipment Sectors & Two Wheeler Sectors, General Manager, R&D and Chief Operating Officer of the Automotive Sector at Mahindra & Mahindra Ltd. since April 2010. He served as an Executive Director of Mahindra & Mahindra Ltd. since September 23, 2013. He served as the Chairman of Swaraj Automotives Limited since April 9, 2014. He served as a Director of Ssangyong Motor Co. since March 15, 2011. He serves as a Non Independent Director Non-Executive of Swaraj Engines Ltd. since May 6, 2010. Dr. Goenka served as a Non-Independent & Non-Executive Director of Mahindra & Mahindra Financial Services Ltd. from October 27, 2005 to March 2009. He served as a Non-Executive Non-Independent Director of Mahindra & Mahindra Financial Services Limited since July 27, 2009 until July 24, 2014. He worked at General Motors R&D Centre in Detroit, U.S.A. from 1979 to 1993. Dr. Goenka has been honoured with several awards including an Outstanding International Advisor Award from SAE in 1997, and a Distinguished Alumni Award from 1.I.T., Kanpur in 2004, the Automotive Man of the Year award at the NDTV Car & Bike Awards. He was conferred the 'CV Man of the Year' award at the annual Apollo CV Awards 2012 in recognition of his extensive contribution within the automotive industry in India and globally. Dr. Goenka holds Masters in Science and Doctorate Degree in Mechanical Engineering from Cornell University USA and an Advanced Management Program from Harvard Business School and Bachelors in Technology in Mechanical Engineering from IIT Kanpur.

CEO Compensation
  • Pawan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pawan's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Pawan Goenka

TITLE
CEO & MD
COMPENSATION
₹122M
AGE
65
TENURE
3.4 yrs

Narayan Shankar

TITLE
Senior VP

Partha Parthasarathy

TITLE
Head of Mobility Services Sector
AGE
57

Anish Shah

TITLE
MD & CEO
AGE
50

Rajan Wadhera

TITLE
President of Automotive Sector & Member of the Group Executive Board
AGE
61

Ramesh Iyer

TITLE
President of Financial Services Sector & Member of the Group Executive Board
AGE
61

Zhooben Bhiwandiwala

TITLE
President of Mahindra Partners and Group Legal & Member of Group Executive Board
AGE
59

Ruzbeh Irani

TITLE
President of Group Communications & Ethics
TENURE
10.3 yrs

Shriprakash Shukla

TITLE
Group President & CEO of Aerospace & Defense Sectors and Member of Group Executive Board
AGE
60

Durga Durgashankar

TITLE
President of Group M&A
AGE
58
Board of Directors Tenure

Average tenure and age of the Mahindra & Mahindra board of directors in years:

13.5
Average Tenure
64.5
Average Age
  • The average tenure for the Mahindra & Mahindra board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Anand Mahindra

TITLE
Non-Executive Chairman
COMPENSATION
₹87M
AGE
64
TENURE
7.7 yrs

Pawan Goenka

TITLE
CEO & MD
COMPENSATION
₹122M
AGE
65
TENURE
6.6 yrs

Keshub Mahindra

TITLE
Chairman Emeritus
COMPENSATION
₹682K
AGE
95
TENURE
7.7 yrs

Anish Shah

TITLE
MD & CEO
AGE
50

Murugappan Murugappan

TITLE
Independent Director
COMPENSATION
₹5M
AGE
64
TENURE
27.7 yrs

Thothala Manoharan

TITLE
Independent Director
COMPENSATION
₹5M
AGE
63
TENURE
3.4 yrs

Tino Puri

TITLE
Independent Director
COMPENSATION
₹4M
AGE
74
TENURE
19.3 yrs

Ravi Kulkarni

TITLE
Independent Director
COMPENSATION
₹5M
AGE
74
TENURE
23.3 yrs

Nadir Godrej

TITLE
Independent Director
COMPENSATION
₹4M
AGE
68
TENURE
27.7 yrs

Rajesh Jejurikar

TITLE
Additional Director & Executive Director of Automotive and Farm Sectors
AGE
55
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Mahindra & Mahindra's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mahindra & Mahindra has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Mahindra & Mahindra Limited engages in the automotive and farm equipment businesses in India and internationally. The company operates through Automotive, Farm Equipment, Financial Services, Real Estate, Hospitality, and Others segments. It offers aircrafts, and airframe parts and assemblies; passenger and commercial vehicles, trucks, buses, vans, cars, utility vehicles, and electric vehicles; personal and commercial watercrafts; motorcycles and scooters; construction equipment, such as backhoe loaders under the Mahindra EarthMaster brand name; road construction equipment comprising motor graders under the Mahindra RoadMaster brand. The company also provides land systems, naval systems, defense electronics, and security consulting services for defense industry; pre-owned car and car services; and farm equipment, including tractors, farm machineries, spare parts, and related services. In addition, it operates M2All, an e-commerce platform for various portfolio of products; approximately 46 resorts; and solar PV projects. Further, the company offers financial products and services comprising retail and other loans, SME finance, housing finance, mutual funds, vehicle and equipment finance, and life and non-life insurance broking services; logistics services; consulting services; and information technology services, as well as power back up solutions, such as diesel generators and gas powered gensets. Additionally, it engages in the project development, management, operation, and leasing of commercial and residential complexes; sale of timeshare and vacation ownership; making, processing, and trading of steel for automotive, non-automotive, and power industries. The company has a strategic alliance with Ford Motor Company. The company was founded in 1945 and is headquartered in Mumbai, India.

Details
Name: Mahindra & Mahindra Limited
MHIDL
Exchange: BATS-CHIXE
Founded: 1945
₹4,594,980,329
1,087,916,704
Website: http://www.mahindra.com
Address: Mahindra & Mahindra Limited
Mahindra Towers,
5th Floor,
Mumbai,
Maharashtra, 400018,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI M&M Ordinary Shares National Stock Exchange of India IN INR 03. Nov 1994
BSE 500520 Ordinary Shares Mumbai Stock Exchange IN INR 03. Nov 1994
OTCPK MAHD.Y GLOBAL DP 144A Pink Sheets LLC US USD 21. Jan 1994
LSE MHID GDR EACH REPR 1 ORD INR10 REG'S' London Stock Exchange GB USD 14. Dec 1993
OTCPK MAHM.F GDR EACH REPR 1 ORD INR10 REG'S' Pink Sheets LLC US USD 14. Dec 1993
DB MOM GDR EACH REPR 1 ORD INR10 REG'S' Deutsche Boerse AG DE EUR 14. Dec 1993
BDL MHNDR GDR EACH REPR 1 ORD INR10 REG'S' Bourse de Luxembourg LU USD 14. Dec 1993
BATS-CHIXE MHIDL GDR EACH REPR 1 ORD INR10 REG'S' BATS 'Chi-X Europe' GB USD 14. Dec 1993
Number of employees
Current staff
Staff numbers
240,000
Mahindra & Mahindra employees.
Industry
Automobile Manufacturers
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 20:00
End of day share price update: 2020/04/01 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/02/08
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.