Mahindra & Mahindra Financial Services Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Mahindra & Mahindra Financial Services Ltd trades at ₹357, in a downtrend and 10 weeks into that stage. That is +11.9% against its own 200-day average. It sits at 69% of a 52-week range of ₹254 to ₹403. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 3 straight weeks.

Today the stock is in a downtrend — week 10 of stage 4, confirmed. At ₹357 it trades +11.9% versus its 200-day average and sits at 69% of its 52-week range (₹254–₹403).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +199% while the NIFTY 500 moved +273% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 3 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/BV sits at the 35th percentile of its own range.

Valuation For a bank we price the book, not the earnings: P/BV is what the market pays for each ₹1 of the bank's net worth. A bank below 1× book is priced below the value of what it owns, net of what it owes.

Mahindra & Mahindra Financial Services Ltd trades at 1.9× P/BV, near the bottom of its own range — cheaper only 35% of the time. Its long-run median P/BV is 2.1×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/BV of 1.9× is near the bottom of its own range — cheaper only 35% of the time, against a long-run median of 2.1× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

The honest context for that discount: a bank earning about 12% on its equity is worth less per rupee of book, and the market has priced that in rather than overlooked it. The discount closes only if the returns themselves improve.

Why the multiple sits where it does: over the past year book value grew while the price moved +40.7% — price and book moved together, holding the multiple in its range.

The price move, decomposed: over 5y, of the +18.9%/yr price move, ~+10.2%/yr came from book-value growth and ~+8.7 pp from the multiple (expanding); over 10y, of the +6.6%/yr price move, ~+14.0%/yr came from book-value growth and ~−7.4 pp from the multiple (compressing). The split is the honest approximate (price return minus book-value growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the book-value line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Mahindra & Mahindra Financial Services Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROE at 12.2% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

70.3/100 — rank 1 of 5 in Finance & Investments - CV Finance · 87% evidence confidence

Mahindra & Mahindra Financial Services Ltd scores 70.3 out of 100 against the 5 companies it is compared with in Finance & Investments - CV Finance, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 26.5 + 13.2 + 14.4 + 16.2 = 70.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if ROA rolls over or gross NPA rises while sector-relative strength deteriorates.

Revenue For a bank, revenue is everything the franchise earns — interest on the loan book plus fee and other income.

Mahindra & Mahindra Financial Services Ltd reported ₹5,718 Cr of income in the Jun 26 quarter, +14.6% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 12.3% a year. The last full year, FY26, came in at ₹21,041 Cr. The last four reported quarters add to ₹21,733 Cr.

Mahindra & Mahindra Financial Services Ltd reported ₹5,718 Cr of income in the Jun 26 quarter, +14.6% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 12.3% a year. The last full year, FY26, came in at ₹21,041 Cr. The last four reported quarters add to ₹21,733 Cr.

FY26 revenue came in at ₹21,041 Cr (+13.6% on the year), capping 10 years at 12.3% compound. The latest quarter (Jun 26) printed ₹5,718 Cr, +14.6% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +13.6% growth against the decade's 12.3% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +13.6% over the last 4 quarters against +14.7%/yr over the last 8 — stabilising; TTM profit +42.1% vs +25.2%/yr — accelerating.

→ Revenue grew — did the net margin hold as it scaled? Next: 16.2% this quarter (+5.6 pp YoY).

Net margin Net margin — what the bank keeps of every ₹100 of revenue after every cost, provision and tax. It is the cleanest single margin we can read for a lender.

Mahindra & Mahindra Financial Services Ltd's net margin is 16.2% in the Jun 26 quarter, +5.6 percentage points against the same quarter a year ago. Across 13 fiscal years the net margin has ranged 6.3% to 18.2%. The current quarter sits inside that band.

Mahindra & Mahindra Financial Services Ltd's net margin is 16.2% in the Jun 26 quarter, +5.6 percentage points against the same quarter a year ago. Across 13 fiscal years the net margin has ranged 6.3% to 18.2%. The current quarter sits inside that band.

The latest quarter's net margin is 16.2%, +5.6 pp against the same quarter a year ago. Across 13 fiscal years the net margin has ranged 6.3%–18.2%.

Why: the numbers show the net margin move clearly, but the cost lines behind it sit below what we hold — so we state the move without inventing its driver.

→ The net margin held — did that reach the bottom line? Next: profit +75.2% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Mahindra & Mahindra Financial Services Ltd earned ₹927 Cr of net profit in the Jun 26 quarter, +75.2% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹2,861 Cr. The 10-year compound rate is 13.8%. That is 16.2% of the quarter's revenue. The same quarter a year earlier earned ₹529 Cr.

Mahindra & Mahindra Financial Services Ltd earned ₹927 Cr of net profit in the Jun 26 quarter, +75.2% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹2,861 Cr. The 10-year compound rate is 13.8%. That is 16.2% of the quarter's revenue. The same quarter a year earlier earned ₹529 Cr.

Jun 26 profit was ₹927 Cr, +75.2% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹2,861 Cr (+26.5%), and the 10-year compound rate is 13.8%.

Why profit moved: revenue contributed +14.6% and the margin +5.6 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +54.1% vs revenue +13.6%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit is up — how clean is the loan book behind it? Next: gross NPA is 3.80%.

Asset quality — the ladder Gross NPA is the slice of the loan book where repayments have stopped. Net NPA is what remains after the money already set aside against those loans. Falling is healing; rising is damage arriving.

Mahindra & Mahindra Financial Services Ltd's gross NPA is 3.80% of the loan book in Dec 25, down from 3.93% a year ago. Net of provisions already set aside, 1.82% remains. Across the 10 quarters held here the book has ranged 3.40% to 4.29%. Falling NPAs are a loan book healing; rising NPAs are damage arriving.

Dec 25: gross NPA at 3.80% and net NPA at 1.82%, against 3.93% / 2.00% a year ago. Over the 10 quarters we hold, the book's worst reading was 4.29% and its best is 3.40%.

The synthesis: profit growth at a bank is only as good as the book behind it, and this book is better than a year ago. A note on depth: quarterly provisioning detail is not in our numbers yet, so this ladder reads levels and trend, not the cost of the cleanup.

Why the ladder moved: recoveries, write-offs and slippages each play a part, and that split sits below what we hold — the numbers show the healing; the driver mix does not travel with them.

→ Behind a cleaner book — is the book itself still growing? Next: revenue grew +13.6% in FY26.

The loan book We read the loan book through revenue — when the book grows, revenue grows with it. It is a rough proxy, and we say so: rate moves and fee swings can shift it a few points in any one year.

Mahindra & Mahindra Financial Services Ltd's revenue grew +13.6% in FY26 to ₹21,041 Cr, so the book is growing. The latest quarter ran +14.6% year on year. The net margin on that income is 16.2%, +5.6 percentage points against a year ago.

FY26 revenue was ₹21,041 Cr, +13.6% on the year, and the latest quarter ran +14.6% year on year. The net margin on that revenue is 16.2% this quarter (+5.6 pp YoY) — growth with a widening margin on it.

The synthesis: a lender compounds when the book grows while the margin holds and the loan book stays clean — gross NPA is the loan-quality read we carry here.

→ Does all of this actually earn its keep on equity? Next: ROE is 12%.

Returns on equity and assets Two numbers rate a bank: ROE — what it earns on shareholder money — and ROA — what it earns on everything it deploys. ROE above ~13–15% earns its keep; below that, growth builds book slowly.

Mahindra & Mahindra Financial Services Ltd earns a return on equity of 12% in FY26. Its trough over the ladder below was 5% in FY21. For a lender the balance sheet is the operating asset, so equity return and asset return have to be read together.

FY26 ROE came in at 12%, recovered from a FY21 trough of 5%. On assets, the latest reading is about null% — every ₹100 the bank deploys earns roughly null a year. That return is below the bar a bank must clear to compound book value quickly — which is also the honest reason the stock trades where it does.

Why ROE moved: profit compounded 13.8% a year over 10 years while the equity base grew more slowly — earnings recovering faster than book value builds is what lifts ROE off a trough.

→ Who owns this bank, and are they adding or leaving? Next: the register is quiet.

Debt

For a bank, borrowings are raw material, not a warning sign — solvency is read through the returns and the loan book. A manufacturer’s debt is a claim against its profits, so the debt-to-equity lens that works everywhere else misleads on a lender and is not applied here.

A manufacturer’s debt is a claim against its profits; a bank’s borrowings are its inventory — money taken in to be lent out. The debt lens that works everywhere else misleads here, so this page does not apply it. The solvency questions for a bank — is the loan book sound, is the equity earning — are read through the loan-book and returns sections above.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Mahindra & Mahindra Financial Services Ltd moved a full percentage point over the last two years — the register is quiet. Foreign institutions moved −0.6 points over the same window, to 9.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +0.8 points over 8 quarters to 31.5%; Foreign institutions: −0.6 points over 8 quarters to 9.5%; Promoters: +0.3 points over 8 quarters to 52.5%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Mahindra & Mahindra Financial Services Ltd: the Z-score is omitted — it was built for manufacturers, not banks, and applying it here would be theatre. The Z-score was built for manufacturers and is not applied to banks and lenders, so solvency here is read from the capital and asset-quality lines instead.

The safety line in one sentence: the Z-score is omitted — it was built for manufacturers, not banks, and applying it here would be theatre.

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