Stock Performance and Market Context
On the day of this landmark, M&M’s stock recorded a gain of 0.57%, outperforming the Sensex which declined by 0.10%. The stock has demonstrated consistent strength, trading above all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a strong upward momentum.
Over the past five trading sessions, the stock has delivered a cumulative return of 6.13%, reflecting steady investor confidence. The price movement has been within a narrow range of Rs.18.9, suggesting controlled volatility amid the upward trend. Relative to its sector, M&M’s performance today was in line, reinforcing its competitive stance.
When viewed over longer periods, M&M’s returns have been notably superior to the broader market benchmarks. The stock has outperformed the Sensex across multiple time frames: 6.46% versus 1.16% over one week, 2.88% versus -0.04% over one month, and 10.46% versus 5.50% over three months. The one-year return stands at an impressive 19.97%, more than double the Sensex’s 8.15% return. Even more striking are the three-year and five-year returns of 205.48% and 417.19% respectively, dwarfing the Sensex’s 41.96% and 76.88% gains over the same periods. Over a decade, M&M has delivered a remarkable 512.73% return compared to the Sensex’s 234.93%.
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Financial Strength and Growth Metrics
M&M’s financial performance has been a key driver behind its stock appreciation. The company has reported positive results for four consecutive quarters, signalling consistent operational excellence. Its net sales for the latest quarter reached a record Rs.46,105.67 crores, marking the highest quarterly sales in its history.
Operating cash flow for the year stands at Rs.3,175.81 crores, the highest recorded, reflecting strong cash generation capabilities. Profit after tax (PAT) for the latest six months is Rs.7,756.64 crores, representing a growth rate of 20.20%. This robust profitability is supported by an annual net sales growth rate of 15.61% and an operating profit growth of 32.29%, underscoring the company’s ability to expand margins alongside revenue.
Return on capital employed (ROCE) is at a healthy 15.5%, indicating efficient utilisation of capital to generate earnings. The enterprise value to capital employed ratio is 3.3, suggesting an attractive valuation relative to the company’s capital base. Notably, M&M is trading at a discount compared to its peers’ average historical valuations, which may reflect market recognition of its solid fundamentals.
Institutional Confidence and Market Standing
Institutional investors hold a significant 68.08% stake in M&M, highlighting strong backing from entities with extensive analytical resources. This high institutional holding often correlates with confidence in the company’s long-term prospects and governance standards.
Within the MarketsMojo framework, M&M commands a Mojo Score of 78.0 and has been upgraded from a Hold to a Buy grade as of 10 Nov 2025. It holds a Market Cap Grade of 1, reflecting its large-cap stature and market influence. The company ranks among the top 1% of all 4,000 stocks rated by MarketsMojo, positioned 9th among large caps and 44th across the entire market, underscoring its elite status.
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Long-Term Consistency and Market Outperformance
M&M’s track record of consistent returns is evident in its performance relative to the BSE500 index. The stock has outperformed the BSE500 in each of the last three annual periods, delivering annual returns of approximately 19.84% in the most recent year. This sustained outperformance highlights the company’s resilience and ability to generate shareholder value over time.
The price-to-earnings-to-growth (PEG) ratio stands at 1.7, reflecting a valuation that balances growth expectations with current earnings. This metric, combined with the company’s strong fundamentals, supports the stock’s current elevated price levels.
Overall, Mahindra & Mahindra Ltd’s ascent to an all-time high of Rs.3819 is a testament to its robust financial health, consistent growth, and strong market positioning within the Indian automobile sector. The stock’s performance across multiple time horizons and its favourable valuation metrics underscore the company’s established leadership and operational strength.
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