Mahindra & Mahindra Ltd (M&M) delivered a solid financial performance in the fourth quarter of FY24, marked by strong revenue growth and a sharp improvement in operating margins. The company’s revenue stood at ₹42,585.67 crore in Q4 FY24, an increase of 2.7% QoQ and 20.4% year-on-year. This marks another robust quarter for the auto-to-agribusiness conglomerate, driven by sustained demand in its core automotive and farm equipment segments.
The company’s net profit for the quarter stood at ₹3,541.85 crore, registering a 13.3% rise compared to ₹3,124.94 crore in Q4 FY23, though slightly down by 2.3% from ₹3,624.48 crore in the previous quarter. Operating performance remained a highlight, with EBITDA rising to ₹4,600 crore (up 33.5% YoY) and EBITDA margin expanding by 135 basis points to 14.9% from 13.55% a year ago—beating analyst expectations of 13.8%. Earnings per share (EPS) for the quarter came in at ₹26.81, up from ₹21.88 YoY, indicating strong shareholder value creation.
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Mahindra & Mahindra’s growth trajectory has been sustained for the whole FY24. The company’s strong fundamentals are reflected in a three-year compounded profit growth of 80% and a sales CAGR of 23.2%. Stock performance has been equally rewarding, with a 3-year CAGR of 48% and a one-year return of 33%, underlining investor confidence in the company’s diversified business model.
Despite the strong performance, the company continues to operate with negative free cash flows (₹-15,303 crore for FY24), impacted by aggressive capex and investment in future growth areas like EVs and digital platforms. The current market price of the stock is ₹2,980, with a 52-week high of ₹3,276 and a low of ₹2,159. M&M trades at a P/E of 30.0, above the industry average of 26.9, and a price-to-book value of 5.30.
The company’s return on equity (ROE) improved to 18.4% for FY24, supported by efficient capital allocation and margin expansion. Return on assets stands at 5.59%, while the operating profit margin is 19.2%, reflecting high operational efficiency across verticals. Promoter holding is now at 18.45%, while foreign institutional investors (FIIs) have increased their stake to 38.30%. Domestic institutional investors (DIIs) also hold a strong 29.77%, with public shareholding at 9.78%.
Analysts are highly bullish on Mahindra & Mahindra. Out of 36 analysts covering the stock, 67% have a ‘Buy’ rating, 31% recommend ‘Outperform’, while only 3% suggest a ‘Hold’. There are no ‘Underperform’ or ‘Sell’ calls, reflecting high conviction on the company’s continued leadership in the mobility and farm equipment space.
With its strong Q4 performance, margin resilience, and favorable long-term growth trajectory, Mahindra & Mahindra continues to stand out as a fundamentally sound play in the Indian auto and agribusiness sector.
Disclaimer
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Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
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