SML Mahindra Limited Fundamental Analysis (NSE: SMLMAH.NS)
SML Mahindra Limited Fundamental Analysis (NSE: SMLMAH.NS)
SML Mahindra Limited (NSE: SMLMAH.NS) shows moderate financial fundamentals with a PE ratio of 48.73, profit margin of 4.80%, and ROE of 28.97%. The company generates $30.6B in annual revenue with strong year-over-year growth of 18.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SMLMAH.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSMLMAH.NS demonstrates superior asset utilization.
Valuation Score
WeakSMLMAH.NS trades at a premium to fair value.
Growth Score
ExcellentSMLMAH.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSMLMAH.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateSMLMAH.NS maintains healthy but balanced margins.
Key Financial Metrics
Is SMLMAH.NS Expensive or Cheap?
P/E Ratio
SMLMAH.NS trades at 48.73 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SMLMAH.NS's PEG of 12.44 indicates potential overvaluation.
Price to Book
The market values SML Mahindra Limited at 12.80 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.31 times EBITDA. This signals the market has high growth expectations.
How Well Does SMLMAH.NS Make Money?
Net Profit Margin
For every $100 in sales, SML Mahindra Limited keeps $4.80 as profit after all expenses.
Operating Margin
Core operations generate 6.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.97 in profit for every $100 of shareholder equity.
ROA
SML Mahindra Limited generates $12.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SML Mahindra Limited generates limited operating cash flow of $1.29B, signaling weaker underlying cash strength.
Free Cash Flow
SML Mahindra Limited produces free cash flow of $994.30M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $68.71 in free cash annually.
FCF Yield
SMLMAH.NS converts 1.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.32
vs 25 benchmark
How SMLMAH.NS Stacks Against Its Sector Peers
| Metric | SMLMAH.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.73 | 24.30 | Worse (Expensive) |
| ROE | 28.97% | 975.00% | Weak |
| Net Margin | 4.80% | -2427.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 0.63 | Strong (Low Leverage) |
| Current Ratio | 1.41 | 2.36 | Neutral |
| ROA | 12.61% | 347.00% | Weak |
SMLMAH.NS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SML Mahindra Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
381.57%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
219.67%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
308.85%
Industry Style: Cyclical, Growth, Discretionary
High Growth