Strong Price Performance and Market Outperformance
On the day of this milestone, M&M’s stock price rose by 0.81%, outperforming the Sensex which gained 0.23%. The stock has demonstrated consistent upward momentum, registering gains for four consecutive days and delivering a cumulative return of 5.72% during this period. Over the past week, the stock surged 4.72%, significantly outpacing the Sensex’s 0.41% rise. This trend extends over longer horizons as well, with M&M outperforming the benchmark index across one month (2.03% vs 0.29%), three months (9.50% vs 5.44%), one year (18.13% vs 6.81%), three years (200.26% vs 39.59%), five years (417.40% vs 78.38%), and even ten years (500.26% vs 226.39%).
The stock’s trading levels remain comfortably above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend. However, the stock has exhibited high intraday volatility today, with a weighted average price volatility of 61.76%, reflecting active trading interest and dynamic price movements.
Financial Strength Underpinning the Rally
M&M’s recent financial results have been a cornerstone of its share price appreciation. The company has declared positive results for four consecutive quarters, highlighting operational consistency. Net sales for the latest quarter reached a record Rs.46,105.67 crores, while operating cash flow for the year peaked at Rs.3,175.81 crores. Profit after tax (PAT) for the latest six months stood at Rs.7,756.64 crores, marking a growth rate of 20.20%.
Annualised growth rates further reinforce the company’s robust fundamentals, with net sales expanding at 15.61% per annum and operating profit surging at 32.29%. Return on capital employed (ROCE) remains attractive at 15.5%, complemented by a favourable enterprise value to capital employed ratio of 3.2. These metrics collectively indicate efficient capital utilisation and strong profitability.
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Valuation and Institutional Confidence
M&M’s valuation metrics suggest an attractive proposition relative to its peers. The company’s PEG ratio stands at 1.7, indicating a reasonable price-to-earnings growth balance. Despite its strong performance, the stock trades at a discount compared to the average historical valuations of its industry counterparts, signalling potential value for investors seeking quality at a fair price.
Institutional investors hold a significant 68.08% stake in the company, reflecting strong confidence from entities with extensive analytical resources. This high level of institutional ownership often correlates with stability and informed market participation.
Long-Term Growth and Market Standing
Over the past decade, M&M has delivered a remarkable 500.26% return, substantially outperforming the Sensex’s 226.39% gain. Its consistent outperformance extends to the last five and three years, with returns of 417.40% and 200.26% respectively, underscoring the company’s sustained growth and resilience in a competitive sector.
MarketsMojo’s assessment places M&M among the top 1% of over 4,000 rated companies, with a Mojo Score of 71.0 and a current Mojo Grade of Buy, upgraded from Hold on 10 Nov 2025. The company also holds a Market Cap Grade of 1, reflecting its stature as a large-cap leader in the automobile sector.
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Sectoral Context and Comparative Performance
Within the automobile sector, M&M’s performance stands out not only for its price appreciation but also for its operational metrics. The company’s ability to sustain growth in net sales and profits while maintaining an attractive ROCE and valuation multiple distinguishes it from many peers. Its outperformance relative to the sector by 0.59% on the day of the all-time high further emphasises its leadership position.
Moreover, the stock’s resilience and consistent returns over multiple time frames highlight its capacity to navigate market cycles effectively. This is particularly notable given the sector’s inherent cyclicality and competitive pressures.
Summary of Key Metrics
To encapsulate, Mahindra & Mahindra Ltd’s stock has reached Rs.3801, its highest ever price, supported by:
- Consistent quarterly positive results over four quarters
- Net sales growth at an annual rate of 15.61%
- Operating profit growth at 32.29% annually
- Operating cash flow at Rs.3,175.81 crores for the year
- PAT growth of 20.20% over the latest six months
- ROCE of 15.5% and EV/Capital Employed ratio of 3.2
- High institutional ownership at 68.08%
- Mojo Score of 71.0 with an upgraded Mojo Grade to Buy
These factors collectively underpin the stock’s strong market performance and its attainment of this significant milestone.
Conclusion
Mahindra & Mahindra Ltd’s ascent to an all-time high price of Rs.3801 marks a noteworthy achievement in its corporate journey. The company’s solid financials, consistent growth, and favourable valuation metrics have driven this performance, setting a benchmark within the automobile sector. Its sustained outperformance relative to the Sensex and peers over multiple time frames further cements its status as a leading large-cap stock in India’s equity markets.
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