MAHINDRA & MAHINDRA LTD Valuation

M&M · Automobile and Auto Components · Current price ₹3,179.2

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DocStoX fair value
₹1,118
medium confidence
Current price
₹3,179
Upside
-64.8%
P/E ratio
23.1x
P/B ratio
4.2x
Verdict
Avoid
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Is MAHINDRA & MAHINDRA LTD undervalued?

DocStoX estimates the fair value of MAHINDRA & MAHINDRA LTD at ₹1,118 per share, versus the current market price of ₹3,179. That puts the stock about -64.8% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is medium.

How this fair value is calculated

This estimate blends 2 independent methods: Residual income (₹938), Graham floor (₹1,522). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹938 (bear) to ₹1,118 (base) to ₹1,522 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

MAHINDRA & MAHINDRA LTD trades at a P/E of 23.1x and a P/B of 4.2x, with a dividend yield of 1.1%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on MAHINDRA & MAHINDRA LTD

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.