AI Summary
✦ ClarthaMahindra & Mahindra is an automotive and farm-solutions company serving India and international markets. Automotive generates revenue from automobiles, two-wheelers, spares, construction equipment, and related services. Farm Equipment sells tractors, implements, spares, powerol, and related services, while investment segments hold related subsidiaries and joint ventures. The proposed ₹525 crore acquisition of M&M’s truck division by SML Mahindra could sharpen automotive focus, though near-term margin benefits remain uncertain. Revenue grew 24.1% year-on-year and profit increased 32.3%, but declining margins indicate earnings quality is weakening despite faster profit growth. Debt-to-equity of 125.28 implies substantial leverage, which can magnify ROE but increases financial risk. At 21.4 times earnings, the stock appears fairly valued rather than discounted, broadly consistent with its classification. The investment case depends on sustaining rural demand, improving automotive margins, and containing leverage across operating and investment businesses.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
From 35 analysts
Fundamentals
Fundamentals institutional score is 68 using growth durability 68.2.
Valuation
Valuation institutional score is 4 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
Analyst View institutional score is 76 using mean target upside 18.6%; dispersion penalty 13.1; recommendation breadth from available consensus.
Technical Structure
Technicals institutional score is 33 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
Recent news flow is balanced or not decisive enough to tilt the tape. Based on 10 recent ticker-linked news items.
Signal Summary
Market intelligence remains Mixed. fundamentals and analyst consensus provide support, while valuation and technical structure remain considerations.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 20.8% above historical median. Valuation is stable — currently in the strongly overvalued zone (z-score: +1.17). Confidence: 75%.
Live forward EPS implies next-12-month EPS of ₹157.54. Applying the stock's normalized valuation corridor produces a fair range of ₹2,122.06 to ₹3,027.92, with base value near ₹2,793.18 (-20.6% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹157.54
Forward P/E
22.3x
Base Fair Value
₹2,793.18
Fair Range
₹2,122.06 - ₹3,027.92
Upside To Base
-20.6%
Estimate Source
Live forward EPS
Growth Estimate
+33.4%
5Y Average
12.76
Current
21.41
Overvalued
19.22
Undervalued
13.47
5Y Average
7.39
Current
12.39
Overvalued
10.46
Undervalued
4.31
5Y Average
1.17
Current
1.97
Overvalued
1.35
Undervalued
1.00
Peers & Comparison
Sector: Consumer Discretionary · Theme: Four Wheelers
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
MARUTI SUZUKI INDIA LTD. MARUTIFour Wheelers | +35.9% | 7.3% | 30.9x Fair | -8% vs avg | +11.4% |
HYUNDAI MOTOR INDIA LTD HYUNDAIFour Wheelers | -0.5% | 7.0% | 36.5x Fair | +8% vs avg | +2.3% |
TATA MOTORS PASS VEH LTD TMPVFour Wheelers | -11.8% | 24.3% | — | — | -46.9% |
MAHINDRA & MAHINDRA LTD trades at a discount (21.4x vs peer avg 33.7x), suggesting potential undervaluation relative to the Four Wheelers cohort. Peers include MARUTI SUZUKI INDIA LTD., HYUNDAI MOTOR INDIA LTD, TATA MOTORS PASS VEH LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹41.96K CrJun 2026Latest net profit
₹3.69K CrJun 2026Latest EPS
₹29.63Jun 2026Net margin
12.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 24,403 | 25,762 | 25,737 | 25,434 | 27,133 | 28,919 | 30,964 | 31,609 | 34,143 | 35,080 | 38,942 | 39,601 | 41,959 |
| Expenses + | 20,852 | 21,270 | 22,088 | 22,006 | 23,017 | 23,649 | 26,070 | 26,671 | 29,199 | 28,560 | 32,849 | 33,990 | 36,809 |
| Operating Profit | 3,551 | 4,492 | 3,649 | 3,428 | 4,116 | 5,270 | 4,894 | 4,938 | 4,944 | 6,520 | 6,092 | 5,611 | 5,150 |
| OPM % | 15% | 17% | 14% | 13% | 15% | 18% | 16% | 16% | 14% | 19% | 16% | 14% | 12% |
| Other Income + | 663 | 691 | 387 | 224 | 258 | 677 | 181 | -206 | 583 | 649 | 225 | 542 | 776 |
| Interest | 33 | 33 | 35 | 40 | 53 | 55 | 61 | 81 | 56 | 59 | 63 | 72 | 100 |
| Depreciation | 840 | 828 | 831 | 988 | 915 | 961 | 1,045 | 1,306 | 1,000 | 1,041 | 1,052 | 1,201 | 1,050 |
| Profit before tax | 3,341 | 4,322 | 3,170 | 2,624 | 3,406 | 4,931 | 3,968 | 3,345 | 4,471 | 6,069 | 5,202 | 4,881 | 4,776 |
| Tax % | 17% | 21% | 21% | 24% | 23% | 22% | 25% | 27% | 23% | 26% | 24% | 23% | 23% |
| Net Profit + | 2,759 | 3,393 | 2,490 | 2,000 | 2,613 | 3,841 | 2,964 | 2,437 | 3,450 | 4,521 | 3,931 | 3,737 | 3,685 |
| EPS in Rs | 22.19 | 27.29 | 20.02 | 16.08 | 21.01 | 30.89 | 23.84 | 19.60 | 27.74 | 36.35 | 31.61 | 30.05 | 29.63 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Announcement under Regulation 30 (LODR)-Press Release / Media Release (Revised)