M & M (M&M)

FairStock Score: 52/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats here: Graham's demand for a margin of safety and Buffett's preference for durable quality at a fair price. M&M's latest quarter shows real scale—sales of ₹52,100 Cr and net profit of ₹5,021 Cr—with a 5-year revenue CAGR of 16.13% and sales growth of 22.54%. That hints at a business with customer pull in passenger cars and utility vehicles. Return on equity at 20.40% is attractive, Piotroski F-Score 7/9 and Altman Z-Score 3.04 suggest reasonable financial footing, and current ratio 2.54 means short-term liquidity is comfortable. But I don't confuse a good business with a good bargain. At ₹3428.30 and book value ₹833.02, P/B is 4.12; P/E is 20.88. Graham's number is only ₹1376.85, so my margin of safety is -146.75%—I am paying a steep premium to net assets. PEG 2.48 and EV/EBITDA 371.56 make me pause; profit growth of 6.82% is far slower than sales growth of 22.54%, suggesting margin pressure or a low-profit mix. Debt/equity 1.25 is not reckless but demands watching, especially because free cash flow is -₹15,440 Cr. ROCE 13.93% is only moderate. Promoter holding 18.45% is low, and dividend yield 0.96% offers little income. M&M looks like a quality cyclical facing valuation and cash-flow questions. I would track profit growth, FCF, debt, and EV/EBITDA. The stock may be a fine business, but at this price it is not a Graham bargain.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer