Mahindra & Mahindra Financial Services Ltd (M&MFIN) — share price & stock analysis

Market cap

₹43,805 Cr

P/BV

1.64×

ROE

12.3%

vs own 10-yr valuation

22nd pctile

Book value / share

₹192

EPS (TTM)

₹21.3

10-yr median P/BV

2.1×

Revenue (FY26)

₹21,041 Cr

Profit after tax (FY26)

₹2,861 Cr

Weinstein stage

Stage 4 (7 weeks)

Data as of

1 July 2026

3 of the 5 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROE 12% — below what a bank must earn to create value; GNPA 3.8% — still elevated; the spread is mid-band vs its own history. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, lending and bad loans count double.

The profits have outrun the price

Since Mar 2016, earnings per share grew 252% while the stock is up 119%. The business has outrun its own share price.pricettm_eps

But the cheapness has a reason: a bank earning about 12% on its equity is worth less per rupee of book, and the market has repriced what that is worth — it hasn’t overlooked it. The gap closes only if the returns themselves improve.roe

Today’s P/BV of 1.6× sits near the bottom of its own range — it has been cheaper than this only 22% of the time against its own 10-year history.pb_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/BV — what the market pays per rupee of book value; the dotted line is its long-run median (2.1×).

The price is in a downtrend — fighting it is expensive

Stock prices move through four repeating stages: basing (1), advancing (2), topping (3) and declining (4). This one is in Stage 4: declining, 7 weeks in, confirmed.stage

The price is below its falling 200-day average — history says most of the damage in stocks happens here. Cheap can get cheaper in Stage 4.dma_200

Beating NIFTY 500 for 2 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Profits are at an all-time high

Over 12 years, income went from ₹5,294 Cr to ₹21,041 Cr (about 12% a year), and profit from ₹965 Cr to ₹2,861 Cr.revenuenet_profit

Margins took a round trip — down to 54.6% in FY25, back to 57.5% now. The profit growth survived the squeeze.revenue−interest_expense

Interest income grew 13% — steady, not spectacular

Mar 26 income was ₹5,539 Cr, up 13% on a year ago. A bank grows by lending more and charging well — this line is both together.revenue

The squeeze is easing — the spread bottomed at 54% and is mending

Of every ₹100 of interest the bank earns, ₹40 goes straight out as interest on deposits and borrowings. It keeps ₹60 — up 5 points from a year ago.revenueinterest_expense

The visible arc: squeezed from 55% down to 54% (Sep 24) as deposits repriced faster than loans, and recovering since. The direction matters more than the level now.interest_expense

Bad loans are healing — from a worst of 4.5% (Mar 23) to 3.8%

₹3.8 of every ₹100 lent is currently stuck with borrowers who’ve stopped paying — down from ₹4.5 at the Mar 23 worst. After the money already set aside, the true exposure is 1.8%.gross_npa_pctnet_npa_pct

Falling bad loans do double duty: less money set aside for losses flows straight back into profit — and the profit bridge this year shows exactly that. The tailwind eventually runs out; the loan book has to take over.gross_npa_pctnet_profit

Profit exploded 106% year on year

Mar 26 profit was ₹940 Cr, up 106% on last year — earnings per share of ₹6.75.net_profiteps

The market still prices this bank below its own average

Today you pay ₹1.64 for every ₹1 of book value, against a long-run median of ₹2.10. It has traded cheaper than this only 22% of the time since 2016.pb_ratio

The owners aren’t moving

Promoters hold 52.5%, essentially unchanged. Foreign funds own 9.4%, domestic funds 32.1%.promoters_pctfiis_pctdiis_pct

Meanwhile foreign funds have been the sellers — from 13.9% to 9.4% over the window. Someone on the other side of the table disagrees; both sides count.fiis_pct

Worth studying deeper — with eyes open

The numbers lean positive, and the discount to the delivery has a reason — the market prices what this level of profitability is worth.

Best thing in the data: profit rising (₹456 Cr → ₹940 Cr).net_profit

Biggest worry: foreign-fund holding falling (10.7% → 9.4%).fiis_pct

One dissent worth hearing: our valuation lens reads negative — “its fair-value math says the price sits about 51% above what the numbers justify”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data