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Mahindra & Mahindra Financial Services (NSEI:M&MFIN)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

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Mahindra & Mahindra Financial Services stock research in summary

mahindrafinance.com

ANALYSIS: With an Obermatt Combined Rank of 8 (worse than 92% compared with investment alternatives), Mahindra & Mahindra Financial Services (Consumer Finance, India) shares have lower financial characteristics compared with similar stocks. Shares of Mahindra & Mahindra Financial Services are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives) but show below-average growth (Growth Rank of 29), and are riskily financed (Safety Rank of 29), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 8, is a sell recommendation based on Mahindra & Mahindra Financial Services's financial characteristics. As the company Mahindra & Mahindra Financial Services's key financial metrics exhibit good value (Obermatt Value Rank of 55) but low growth (Obermatt Growth Rank of 29) and risky financing practices (Obermatt Safety Rank of 29), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 55% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	55
Growth Rank	29
Safety Rank	29
Combined Rank	8

Country	India
Industry	Consumer Finance
Index	Good Governace Growth Markets, Independent Boards Growth Markets
Size class	Large

2-May-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Mahindra & Mahindra Financial Services

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	43	47	55
GROWTH
GROWTH	19	31	43	29
SAFETY
SAFETY	20	66	21	29
SENTIMENT
SENTIMENT	n/a	41	3	^new
360° VIEW
360° VIEW	n/a	27	1	^new

Most recent update of the stock research: 2-May-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Mahindra & Mahindra Financial Services is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	43	47	55
GROWTH
GROWTH	19	31	43	29
SAFETY
SAFETY	20	66	21	29
COMBINED
COMBINED	7	45	12	8

Last update of combined financial performance: 2-May-2024. Stock analysis on combined financial performance: The higher the rank of Mahindra & Mahindra Financial Services the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), Mahindra & Mahindra Financial Services shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Mahindra & Mahindra Financial Services. Price-to-Sales (P/S) is 60, which means that the stock price compared with what market professionals expect for future sales is lower than 60% of comparable companies, indicating a good value concerning to Mahindra & Mahindra Financial Services's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 44, meaning that dividends are expected to be lower than for 56% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 53% of alternatives (only 47% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 54% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on Mahindra & Mahindra Financial Services's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Mahindra & Mahindra Financial Services could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Mahindra & Mahindra Financial Services looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	84	43	41	60
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	53	35	46
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	62	48	43	47
DIVIDEND YIELD
DIVIDEND YIELD	30	36	42	44
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	42	43	47	55

Last update of Value Rank: 2-May-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Mahindra & Mahindra Financial Services; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 29 (better than 29% compared with alternatives), Mahindra & Mahindra Financial Services shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Mahindra & Mahindra Financial Services. While Sales Growth ranks at 84, professionals currently expect the company to grow more than 84% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 10, which means that, currently, professionals expect the company to grow its profits less than 90% of its competitors, and Capital Growth has a low rank of 46. Historic stock returns were also below average with a current Stock Returns rank of 19 which means that the stock returns have recently been below 81% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 29, is a hold recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	22	44	92	84
PROFIT GROWTH
PROFIT GROWTH	n/a	98	8	10
CAPITAL GROWTH
CAPITAL GROWTH	n/a	16	46	46
STOCK RETURNS
STOCK RETURNS	64	11	53	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19	31	43	29

Last update of Growth Rank: 2-May-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Mahindra & Mahindra Financial Services.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 29 (better than 29% compared with alternatives), the company Mahindra & Mahindra Financial Services has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Mahindra & Mahindra Financial Services is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Mahindra & Mahindra Financial Services. Refinancing is at 55, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Liquidity is also good at 51, meaning the company generates more profit to service its debt than 51% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 16, which means the company has an above-average debt-to-equity ratio. It has more debt than 84% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 29 (worse than 71% compared with alternatives), Mahindra & Mahindra Financial Services has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Mahindra & Mahindra Financial Services could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Mahindra & Mahindra Financial Services and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	8	28	16	16
REFINANCING
REFINANCING	64	69	56	55
LIQUIDITY
LIQUIDITY	19	74	55	51
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	20	66	21	29

Last update of Safety Rank: 2-May-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Mahindra & Mahindra Financial Services and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	44	23	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	82	48	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	34	29	^new
MARKET PULSE
MARKET PULSE	n/a	22	16	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	41	3	^new

Last update of Sentiment Rank: 2-May-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Mahindra & Mahindra Financial Services.
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