Discover the latest trends and analysis of M&M Finance Share Price, including technical indicators, fundamental analysis, and market sentiment. Stay informed about potential price movements and investment opportunities with up-to-date insights on M&M Finance’s stock performance.
The M&M Finance Share Price encapsulates the essence of Mahindra & Mahindra Financial Services Limited’s performance and market standing. As investors and enthusiasts delve into the intricacies of financial markets, understanding the nuances of M&M Finance Share Price becomes paramount.
At the heart of this exploration lies Mahindra & Mahindra Financial Services Limited (MMFSL), an Indian rural non-banking financial company headquartered in Mumbai. Renowned for its prowess in tractor financing and boasting a vast network of over 1000 offices across India, MMFSL stands as a formidable player in the financial landscape.
This article embarks on a journey to unravel the intricacies of the M&M Finance Share Price, shedding light on the factors influencing its fluctuations, its significance in assessing MMFSL’s performance, and the broader implications for investors and stakeholders alike.
Table of Contents
Mahindra & Mahindra Financial Services Limited (MMFSL) stands as a prominent Indian rural non-banking financial company headquartered in Mumbai. Renowned for its role as one of the top tractor financers in India, the company boasts a widespread presence with over 1000 offices scattered across the nation.
The journey of Mahindra Finance commenced on 1 January 1991, under the name Maxi Motors Financial Services Limited. Formalizing its operations, it received the certificate of commencement of business on 19 February 1991. A significant milestone transpired on 3 November 1992, as Mahindra Finance underwent a name change to Mahindra & Mahindra Financial Services Limited. Registered with the Reserve Bank of India as an asset finance and deposit-taking NBFC, the company solidified its position in the financial sector.
In 1993, Mahindra Finance diversified its portfolio by venturing into financing M&M utility vehicles. This expansion continued in 1995 when the company inaugurated its first branch outside Mumbai, located in Jaipur. Subsequently, in 2002, Mahindra Finance extended its financing services to non-M&M vehicles, marking another significant stride. The year 2009 witnessed the company’s foray into financing commercial vehicles and construction equipment, further broadening its scope of operations.
A pivotal moment in Mahindra Finance’s trajectory occurred in 2011 with the establishment of a joint venture with a Rabobank subsidiary for tractor financing in the US market. This strategic alliance bolstered its international presence and underscored its commitment to global expansion. Additionally, Mahindra Finance consolidated its product portfolio in 2011 by introducing financing solutions tailored for small and medium enterprises (SMEs), thus catering to a broader spectrum of clients.
Subsidiaries of M&M Finance
We need to know the important subsidiary companies of M&M Finance to analyse M&M Finance Share Price
- Mahindra Rural Housing Finance Ltd
Mahindra Rural Housing Finance Ltd, also known as Mahindra Home Finance, operates as a subsidiary of Mahindra Finance. It specializes in providing accessible home loans tailored for individuals residing in rural, semi-urban, and urban areas.
- Mahindra Insurance Brokers Ltd
Established in 2004, Mahindra Insurance Brokers Ltd (MIBL) is dedicated to revolutionizing the insurance sector in India. It holds a Direct Broker’s License granted by the Insurance Regulatory and Development Authority (IRDA), enabling it to engage in direct insurance broking in both Life and Non-Life segments. MIBL collaborates with various public and private insurance companies to offer personalized insurance solutions to its customers.
- Mahindra Finance CSR Foundation
Mahindra Finance CSR Foundation, incorporated on 2 April 2019, operates as a non-governmental entity focusing on social work activities. It is registered at the Registrar of Companies in Mumbai and is committed to making a positive impact on society.
- Mahindra Manulife Trustee Private Limited
Mahindra Manulife Trustee Private Limited, established on 10 July 2013, engages in auxiliary activities to financial intermediation, excluding insurance and pension funding. It operates as a non-governmental company registered at the Registrar of Companies in Mumbai.
- Mahindra Manulife Investment Management Pvt. Ltd
A joint venture between Mahindra & Mahindra Financial Services Limited and Manulife Investment Management (Singapore) Pte. Ltd, Mahindra Manulife Investment Management Pvt. Ltd combines Mahindra’s domestic market strength with Manulife’s global wealth and asset management capabilities. It aims to offer a diverse range of investment solutions across asset classes and investment platforms.
- Mahindra Ideal Finance
Mahindra Ideal Finance, established on 27th March 2012, is recognized as one of the fastest-growing Non-Bank Financial Institutions (NFBI) in the country. Specializing in providing financial services, Mahindra Ideal Finance is committed to meeting the evolving needs of its customers.
Share Holding Pattern of M&M Finance
These figures represent significant actions taken by a company that directly influence shareholder value. They signify material changes within the company and have an impact on its stakeholders:
- Promoter Shareholding: 18.59%
- FII (Foreign Institutional Investor) Shareholding: 41.75%
- DII (Domestic Institutional Investor) Shareholding: 13.40%
- MF (Mutual Fund) Shareholding: 12.72%
- Retail and Others: 13.53%
In the world of finance, fundamental analysis plays a pivotal role in evaluating the health and performance of companies. To analyse fundamental of M&M Finance Share Price, by examining various financial ratios, investors gain insights into a company’s profitability, liquidity, solvency, efficiency, valuation, and growth prospects. Let’s delve into the fundamental analysis of Mahindra & Mahindra Financial Services Limited (M&M Finance) based on key financial ratios from March 2020 to March 2023.
Fundamental Analysis of M&M Finance Share Price | ||||
Ratio | March 2023 | March 2022 | March 2021 | March 2020 |
Profitability Ratio | ||||
Gross Profit Margin | 100.00% | 0% | 0% | 0% |
Net Profit Margin | 27.81% | 10.05% | 6.38% | 9.05% |
Return on Equity (ROE) | 11.17% | 6.73% | 4.90% | 8.98% |
Liquidity Ratio | ||||
Current Ratio | 3.34 | 2.48 | 2.28 | 2.17 |
Quick Ratio (Acid-Test Ratio) | 0 | 0 | 0 | 0 |
Solvency Ratio | ||||
Debt to Equity Ratio | 0 | 1.98 | 2.16 | 2.70 |
Interest Coverage Ratio | 1.41 | 1.34 | 1.17 | 1.29 |
Efficient Ratio | ||||
Inventory Turnover Ratio | 0.00 | 0.00 | 0.00 | 0.00 |
Account Receivable Turnover Ratio | 91.35 | 174.57 | 202.75 | 201.85 |
Valuation Ratio | ||||
Price to earning Ratio (P/E) | 13.81 | 17.30 | 31.78 | 12.32 |
Price to Book Ratio (P/B) | 1.53 | 1.16 | 1.56 | 1.11 |
Growth Ratio | ||||
Earning per Share (EPS) Growth | 16.77 | 9.20 | 6.26 | 11.95 |
Revenue Growth (in Rs. Cr.) | 13,562.42 | 11,056.09 | 9,718.80 | 10,516.81 |
Profitability Ratio
Gross Profit Margin:
From March 2021 to March 2023, M&M Finance witnessed a substantial improvement in its gross profit margin, reaching 100%. This indicates that the company efficiently controls its production costs and generates a higher percentage of revenue as gross profit.
Net Profit Margin:
Over the same period, the net profit margin of M&M Finance exhibited a positive trend, increasing from 6.38% in March 2021 to 27.81% in March 2023. This signifies improved efficiency in managing operational expenses and generating profits from its core business activities.
Return on Equity (ROE):
M&M Finance’s return on equity also showed a positive trajectory, climbing from 4.90% in March 2021 to 11.17% in March 2023. This indicates that the company effectively utilizes shareholders’ equity to generate profits.
Liquidity Ratio
Current Ratio:
M&M Finance’s current ratio reflects a healthy liquidity position, consistently above 2 over the analysed period. A current ratio of 3.34 in March 2023 indicates that the company has sufficient current assets to cover its short-term liabilities.
Quick Ratio (Acid-Test Ratio):
Interestingly, the quick ratio remains at 0 throughout the period. This suggests that the company’s current assets primarily consist of inventory, which may not be easily convertible into cash in the short term.
Solvency Ratio
Debt to Equity Ratio:
Notably, M&M Finance managed to reduce its debt to equity ratio to 0 in March 2023 from 2.70 in March 2020. This signifies a stronger financial position with reduced reliance on debt financing.
Interest Coverage Ratio:
Although the interest coverage ratio fluctuates slightly, it remains above 1 throughout the period, indicating that M&M Finance can comfortably meet its interest obligations.
Efficiency Ratio
Inventory Turnover Ratio:
Surprisingly, the inventory turnover ratio remains at 0 throughout the analysed period, suggesting potential inefficiencies in managing inventory or unique business dynamics.
Account Receivable Turnover Ratio:
M&M Finance exhibits a consistent account receivable turnover ratio, indicating efficient management of credit sales and collections.
Valuation Ratio
Price to Earning Ratio (P/E):
M&M Finance’s P/E ratio fluctuates over the years, with a significant spike in March 2021 followed by a decline and stabilization. A P/E ratio of 13.81 in March 2023 suggests that investors are willing to pay $13.81 for every dollar of earnings.
Price to Book Ratio (P/B):
The P/B ratio reflects fluctuations but generally remains within a reasonable range, indicating a balance between market price and book value per share.
Growth Ratio
Earning per Share (EPS) Growth:
M&M Finance demonstrates consistent growth in earnings per share, reflecting the company’s ability to generate profits for its shareholders over time.
Revenue Growth:
The company’s revenue growth also displays a positive trend, indicating expansion and increasing market presence.
Overall, the fundamental analysis of Mahindra & Mahindra Financial Services Limited portrays a company with improving profitability, strong liquidity and solvency positions, efficient operational management, and promising growth prospects. Investors may find M&M Finance an attractive investment opportunity based on its solid financial performance and growth trajectory.
Technical Analysis of M&M Finance
Technical analysis of M&M Finance Share Price involves evaluating price movements and trading volumes to forecast future price movements. Technical analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for M&M Finance. The main goal of technical analysis of M&M Finance share price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions about when to enter or exit trades. So, bellow we are explaining Various techniques as of 13th May 2024 for technical analysis of M&M Finance.
Price Action
Price action and price level of M&M Finance Share Price (As of 13th May 2024) | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Morning Star Candlestick pattern | Inside bar Candlestick pattern | Doji Candlestick is forming |
Chart Pattern | Symmetrical triangle Pattern | Bullish flag pattern may form | Double top |
Price Support Level | 264-250 | 240-245 | 230-235 |
Price Level | 264 is Current price | 52 weeks High 346.55 | 52 weeks low 237.35 |
When it comes to understanding the dynamics of stock prices, analysing price action and identifying key price levels is crucial. Let’s delve into the recent price action and price levels of Mahindra & Mahindra Financial Services Limited (M&M Finance) as of 13th May 2024 across various timeframes.
Daily Timeframe
Candlestick Pattern:
A Morning Star Candlestick pattern was observed on the given day. The daily candle displayed strong bullish momentum with decent volume, closing at 263.8. This pattern typically signals a potential reversal from a downtrend to an uptrend, indicating bullish sentiment in the short term.
Symmetrical Triangle Pattern:
The symmetrical triangle pattern has been activated, with a breakout candle closing above the resistance line accompanied by sufficient volume. After undergoing a correction of around 30% since July 2023, the market appears poised for an upward movement. This pattern typically indicates a period of consolidation followed by a breakout, suggesting a bullish outlook for M&M Finance in the short to medium term.
Price Support Level:
A strong support zone is identified between 264 and 250 on the daily timeframe. This suggests that the price has found substantial buying interest in this range, indicating potential upward momentum.
Weekly Timeframe
Candlestick Pattern:
An Inside Bar Candlestick pattern is forming for the week. The current week’s candle is consolidating within the previous week’s range, potentially signalling indecision in the market. However, it’s worth noting that the previous week’s candle found support at a trend line, suggesting a possible continuation of the prevailing trend.
Bullish Flag Pattern:
A Bullish Flag pattern may form if the market breaks above 300 for the medium term. This pattern is characterized by a sharp price rise (the flagpole) followed by a consolidation period (the flag), typically forming a continuation pattern. A breakout above the flag’s upper boundary would signal a resumption of the uptrend, potentially leading to further price appreciation.
Price Support Level:
Another support zone is observed between 240 and 245 on the weekly timeframe. This level signifies a region where the price has previously found support, indicating a potential area of buying interest.
Monthly Timeframe
Candlestick Pattern:
A Doji Candlestick is forming as of 13th May, indicating uncertainty or indecision in the market. However, future price action may determine the pattern’s significance. A bearish candle following the Doji could potentially lead to a price dip to around 240, while a bullish continuation could drive prices higher.
Double Top Pattern:
The monthly candlestick pattern is currently displaying a Double Top, suggesting a potential reversal pattern. However, there are high chances of breaking the previous high and creating new highs in the longer term. This pattern typically forms after a prolonged uptrend and indicates a possible trend reversal if the price fails to surpass the previous high.
Price Support Level:
A relatively weaker support zone is identified between 230 and 235 on the monthly timeframe. While the price has occasionally found support in this range, it is not as robust as the support levels observed on the daily and weekly timeframes.
Price Level
The current price stands at 264. This price level is noteworthy as it indicates that the price is finding support near the 52-week low. This suggests that there are high chances for the price to rebound and potentially reach levels near the 52-week high in the short and medium term.
The 52-week high for M&M Finance is recorded at 346.55. This level represents the highest price reached by the stock over the past 52 weeks.
On the other hand, the 52-week low stands at 237.35. This represents the lowest price level reached by the stock during the same period.
In summary, the analysis of M&M Finance share price action across daily, weekly, and monthly timeframes reveals bullish signals amidst some uncertainties. On the daily timeframe, the Morning Star Candlestick pattern suggests a potential uptrend, supported by a strong support zone at 264-250. The symmetrical triangle pattern on the weekly chart indicates a likely breakout after a correction phase, while the Bullish Flag pattern hints at medium-term upside potential. Meanwhile, the Doji Candlestick and Double Top pattern on the monthly chart signal indecision but with possibilities of price appreciation. Overall, with support near the 52-week low and previous highs, M&M Finance share price shows promise for short to medium-term gains.
Indicators Use for Technical Analysis
Bolinger Band (BB):
Bolinger Band Price level in M&M Finance (As of 13th May 2024) | |||
| Upper Band | Median | Lower Band |
Bolinger Band | 297.93 | 268.33 | 238.72 |
The Bollinger Bands, a popular technical analysis tool, provide insights into the potential price movements of M&M Finance as of 13th May 2024. The upper Bollinger Band, standing at 297.93, suggests an open space for upward movement, indicating the possibility of price appreciation in the near term. This signifies a favourable environment for bullish sentiment among traders and investors.
Conversely, the median Bollinger Band, positioned at 268.33, acts as immediate resistance. Here, prices may face selling pressure, potentially leading to a temporary pause or correction in the ongoing upward trend. This level serves as a crucial point to monitor for potential shifts in market sentiment or trend reversal.
Furthermore, the lower Bollinger Band, situated at 238.72, represents longer-term support for M&M Finance. This level indicates a robust foundation for prices, suggesting potential stability or even a rebound in case of a downturn. Traders and investors may view this as a critical level to consider for strategic entry points or as a safeguard against significant downside risks.
In summary, the Bollinger Bands provide valuable insights into the potential price movements of M&M Finance. While the upper band indicates a favourable outlook for price appreciation, traders should remain cautious around the median band as it represents immediate resistance. Additionally, the lower band offers a reliable support level, signalling potential stability and opportunities for strategic positioning in the market.
Moving Average (MA):
Moving Average price level in daily candlestick of M&M Finance (As of 13th May 2024) | ||
Moving Average | 100 Day | 200 Day |
Simple Moving Average (SMA) | 278.84 | 281.99 |
Exponential Moving Average (EMA) | 277.20 | 276.50 |
As of 13th May 2024, the Moving Average (MA) of M&M Finance Share Price indicates offer valuable insights into the price trends of M&M Finance on a daily candlestick basis. The Simple Moving Average (SMA) and Exponential Moving Average (EMA) are widely used indicators that smooth out price data to identify trends more effectively.
The 100-day SMA stands at 278.84, suggesting a level around which the price may soon adjust according to the candlestick pattern. Similarly, the 200-day SMA is at 281.99, indicating an imminent price adjustment in alignment with the observed candlestick pattern. These levels provide reference points for traders and investors to gauge the stock’s price movements and potential trend changes.
Additionally, the 100-day EMA is positioned at 277.20, indicating a potential price adjustment based on the current candlestick pattern. Similarly, the 200-day EMA stands at 276.50, suggesting a similar price adjustment in line with the observed candlestick pattern. These EMA levels offer further insights into the short to medium-term price trends of M&M Finance.
In summary, the Moving Average price levels in the daily candlestick of M&M Finance as of 13th May 2024, provide valuable guidance for traders and investors. These levels, accompanied by the observed candlestick patterns, offer valuable information regarding potential price adjustments and trend changes in the stock’s price movements. Traders and investors can utilize this information to make informed decisions regarding their trading strategies and market positions.
Data Analysis
Open Interest Put Call Ratio of M&M Finance
Open Interest Put Call Ratio of M&M Finance | ||||
Expiry Date | Put Open Interest | Call Open Interest | PCR OI | Signal |
30/05/2024 | 11754.00 K | 21936.00 K | 0.536 | Bullish |
27/06/2024 | 682.00 K | 488.00 K | 1.40 | Bearish |
The Open Interest Put Call Ratio (PCR OI) for M&M Finance provides insights into the sentiment of options traders regarding the stock’s future price movements. It compares the number of open put contracts to open call contracts, helping gauge whether traders are bullish or bearish on the stock.
As of the expiry date on 30th May 2024, the Put Open Interest stands at 11754.00 K, while the Call Open Interest is at 21936.00 K. This results in a PCR OI of 0.536. A PCR OI below 1 indicates that there are more open call contracts than put contracts, suggesting a bullish sentiment among options traders. Consequently, this is interpreted as a bullish signal for M&M Finance.
On the other hand, for the expiry date on 27th June 2024, the Put Open Interest is 682.00 K, while the Call Open Interest is 488.00 K. This results in a PCR OI of 1.40. A PCR OI above 1 indicates that there are more open put contracts than call contracts, suggesting a bearish sentiment among options traders. Consequently, this is interpreted as a bearish signal for M&M Finance.
In summary, the Open Interest Put Call Ratio serves as a valuable tool for assessing market sentiment and identifying potential trends in M&M Finance. Traders and investors can utilize this information to make informed decisions regarding their trading strategies and market positions.
Conclusion
M&M Finance emerges as a strong investment contender, backed by its dominant position in tractor financing and extensive nationwide presence. Fundamental analysis of M&M Finance Share Price highlights consistent growth in profitability, liquidity, and solvency, while technical indicators signal bullish trends. The Bollinger Bands and moving averages suggest upward momentum, supported by recent price action.
Moreover, the Open Interest Put Call Ratio indicates prevailing bullish sentiment among options traders. These factors collectively underscore the potential for significant returns from investing in M&M Finance. With its solid financial performance and promising growth trajectory, M&M Finance stands out as a compelling investment opportunity, poised to deliver value to investors in the foreseeable future.
FAQs
- What is Mahindra & Mahindra Financial Services Limited?
Mahindra & Mahindra Financial Services Limited (M&M Finance) is an Indian rural non-banking financial company headquartered in Mumbai. It specializes in providing financial services, including vehicle financing, insurance, and SME financing.
- When was Mahindra & Mahindra Financial Services Limited established?
Mahindra & Mahindra Financial Services Limited was established on 1 January 1991, initially named Maxi Motors Financial Services Limited. It received its current name on 3 November 1992.
- Where is Mahindra & Mahindra Financial Services Limited headquartered?
The headquarters of Mahindra & Mahindra Financial Services Limited is located in Mumbai, India.
- What are the main subsidiaries of Mahindra & Mahindra Financial Services Limited?
The main subsidiaries of Mahindra & Mahindra Financial Services Limited include Mahindra Rural Housing Finance Ltd, Mahindra Insurance Brokers Ltd, Mahindra Finance CSR Foundation, Mahindra Manulife Trustee Private Limited, Mahindra Manulife Investment Management Pvt. Ltd, and Mahindra Ideal Finance.
- What is the current shareholding pattern of Mahindra & Mahindra Financial Services Limited?
The current shareholding pattern of Mahindra & Mahindra Financial Services Limited includes 18.59% promoter shareholding, 41.75% FII (Foreign Institutional Investor) shareholding, 13.40% DII (Domestic Institutional Investor) shareholding, 12.72% MF (Mutual Fund) shareholding, and 13.53% retail and others.
- What is the significance of the Price to Earning Ratio (P/E) in fundamental analysis?
The Price to Earning Ratio (P/E) in fundamental analysis measures the current market price of a company’s shares relative to its earnings per share (EPS). It indicates how much investors are willing to pay for each unit of earnings and helps assess the company’s valuation.
- What do Bollinger Bands indicate in technical analysis?
Bollinger Bands in technical analysis indicate potential price movements and volatility of a stock. The upper band suggests potential resistance levels, the lower band indicates potential support levels, and the width between the bands reflects the stock’s volatility.
- What is the Open Interest Put Call Ratio (PCR OI) used for?
The Open Interest Put Call Ratio (PCR OI) is used to gauge market sentiment among options traders. A PCR OI below 1 indicates a bullish sentiment, while a PCR OI above 1 suggests a bearish sentiment.
- What are Moving Averages used for in technical analysis?
Moving Averages in technical analysis are used to identify trends and potential reversal points in a stock’s price movements. They smooth out price data over a specified period, helping traders identify support and resistance levels.
- How is profitability assessed in fundamental analysis?
Profitability in fundamental analysis is assessed through various ratios such as gross profit margin, net profit margin, and return on equity (ROE). These ratios measure a company’s ability to generate profits from its operations and provide insights into its financial health.
