InCred Equities - Mahindra & Mahindra

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	1,165,680	1,313,231	1,469,802	1,633,467
Operating EBITDA (Rsm)	172,068	188,493	204,559	227,620
Net Profit (Rsm)	127,871	136,220	144,415	161,249
Core EPS (Rs)	114.5	122.0	129.4	144.4
Core EPS Growth	20.6%	6.5%	6.0%	11.7%
FD Core P/E (x)	27.12	25.46	24.01	21.51
DPS (Rs)	25.0	27.5	30.0	30.0
Dividend Yield	0.87%	0.95%	1.04%	1.04%
EV/EBITDA (x)	17.53	16.01	14.39	12.70
P/FCFE (x)	44.40	138.23	50.89	58.49
Net Gearing	(36.9%)	(27.6%)	(29.3%)	(28.0%)
P/BV (x)	5.63	4.82	4.19	3.64
ROE	22.5%	20.4%	18.7%	18.1%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	1,165,680	1,313,231	1,469,802	1,633,467
Gross Profit	302,279	334,874	367,451	408,367
Operating EBITDA	172,068	188,493	204,559	227,620
Depreciation And Amortisation	(42,268)	(50,193)	(59,277)	(65,469)
Operating EBIT	129,800	138,300	145,282	162,152
Financial Income/(Expense)	(2,505)	(3,000)	(3,500)	(4,000)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	38,527	41,609	45,770	51,263
Profit Before Tax (pre-EI)	165,823	176,910	187,553	209,414
Exceptional Items
Pre-tax Profit	165,823	176,910	187,553	209,414
Taxation	(37,952)	(40,689)	(43,137)	(48,165)
Exceptional Income - post-tax
Profit After Tax	127,871	136,220	144,415	161,249
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	127,871	136,220	144,415	161,249
Recurring Net Profit	127,871	136,220	144,415	161,249
Fully Diluted Recurring Net Profit	127,871	136,220	144,415	161,249

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	172,068	188,493	204,559	227,620
Cash Flow from Invt. & Assoc.
Change In Working Capital	28,092	(33,712)	(8,549)	13,544
(Incr)/Decr in Total Provisions	6,471	(5,000)	(5,000)	(5,000)
Other Non-Cash (Income)/Expense
Other Operating Cashflow	(2,610)
Net Interest (Paid)/Received	36,023	38,609	42,270	47,263
Tax Paid	(37,952)	(40,689)	(43,137)	(48,165)
Cashflow From Operations	202,092	147,701	190,143	235,262
Capex	(64,757)	(116,508)	(80,000)	(145,469)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(54,727)	(1,106)	(37,000)	(30,000)
Cash Flow From Investing	(119,483)	(117,614)	(117,000)	(175,469)
Debt Raised/(repaid)	(4,498)	(5,000)	(5,000)	(500)
Proceeds From Issue Of Shares	8
Shares Repurchased
Dividends Paid	(30,020)	(33,021)	(36,023)	(36,023)
Preferred Dividends
Other Financing Cashflow	4,556	0		0
Cash Flow From Financing	(29,955)	(38,021)	(41,023)	(36,523)
Total Cash Generated	52,654	(7,934)	32,120	23,270
Free Cashflow To Equity	78,110	25,087	68,143	59,293
Free Cashflow To Firm	85,113	33,087	76,643	63,793

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	238,800	204,971	244,092	267,362
Total Debtors	57,256	75,556	92,618	102,931
Inventories	103,333	125,926	132,886	147,683
Total Other Current Assets	47,709	54,209	60,709	67,209
Total Current Assets	447,098	460,662	530,304	585,184
Fixed Assets	251,835	301,643	322,366	402,366
Total Investments	223,786	250,786	280,786	310,786
Intangible Assets
Total Other Non-Current Assets
Total Non-current Assets	475,621	552,429	603,152	713,152
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	234,058	241,239	256,712	295,367
Other Current Liabilities
Total Current Liabilities	234,058	241,239	256,712	295,367
Total Long-term Debt	11,351	6,351	1,351	851
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities	11,351	6,351	1,351	851
Total Provisions	44,951	46,451	47,951	49,451
Total Liabilities	290,360	294,041	306,014	345,669
Shareholders Equity	615,851	719,050	827,442	952,668
Minority Interests
Total Equity	615,851	719,050	827,442	952,668

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	17.0%	12.7%	11.9%	11.1%
Operating EBITDA Growth	25.1%	9.5%	8.5%	11.3%
Operating EBITDA Margin	14.8%	14.4%	13.9%	13.9%
Net Cash Per Share (Rs)	203.75	177.93	217.45	238.74
BVPS (Rs)	551.68	644.13	741.23	853.41
Gross Interest Cover	51.82	46.10	41.51	40.54
Effective Tax Rate	22.9%	23.0%	23.0%	23.0%
Net Dividend Payout Ratio	23.5%	24.2%	24.9%	22.3%
Accounts Receivables Days	16.09	18.46	20.88	21.85
Inventory Days	41.93	42.77	42.85	41.80
Accounts Payables Days	88.77	88.66	82.44	82.24
ROIC (%)	44.8%	45.9%	34.5%	34.6%
ROCE (%)	21.6%	19.8%	18.2%	17.8%
Return On Average Assets	15.4%	14.3%	13.7%	13.5%

(91) 22 4161 1541 pramod.amthe@incredresearch.com

(91) 22 4161 1552 ravi.gupta@incredresearch.com

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Market Data

Source: Bloomberg