InCred Equities - Mahindra & Mahindra

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	1,165,680	1,333,950	1,532,831	1,703,358
Operating EBITDA (Rsm)	172,069	191,360	216,346	239,051
Net Profit (Rsm)	127,872	141,490	155,758	171,513
Core EPS (Rs)	114.5	126.7	139.5	153.6
Core EPS Growth	20.6%	10.6%	10.1%	10.1%
FD Core P/E (x)	31.34	28.32	25.73	23.37
DPS (Rs)	25.0	29.0	34.0	37.5
Dividend Yield	0.75%	0.87%	1.02%	1.12%
EV/EBITDA (x)	20.67	18.62	16.10	14.34
P/FCFE (x)	51.30	190.77	50.95	56.76
Net Gearing	(36.9%)	(27.0%)	(29.3%)	(28.1%)
P/BV (x)	6.51	5.61	4.83	4.19
ROE	22.5%	21.3%	20.2%	19.2%
% 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	1,333,950	1,532,831	1,703,358
Gross Profit	302,279	337,489	381,675	422,433
Operating EBITDA	172,069	191,360	216,346	239,051
Depreciation And Amortisation	(42,268)	(48,057)	(58,029)	(65,469)
Operating EBIT	129,801	143,303	158,318	173,582
Financial Income/(Expense)	(2,505)	(2,700)	(3,500)	(4,000)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	38,527	43,150	47,466	53,161
Profit Before Tax (pre-EI)	165,824	183,753	202,283	222,744
Exceptional Items
Pre-tax Profit	165,824	183,753	202,283	222,744
Taxation	(37,952)	(42,263)	(46,525)	(51,231)
Exceptional Income - post-tax
Profit After Tax	127,872	141,490	155,758	171,513
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	127,872	141,490	155,758	171,513
Recurring Net Profit	127,872	141,490	155,758	171,513
Fully Diluted Recurring Net Profit	127,872	141,490	155,758	171,513

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	172,069	191,360	216,346	239,051
Cash Flow from Invt. & Assoc.
Change In Working Capital	28,092	(32,427)	(8,138)	14,585
(Incr)/Decr in Total Provisions	6,471	(5,000)	(5,000)	(5,000)
Other Non-Cash (Income)/Expense
Other Operating Cashflow	(2,610)	(8,500)
Net Interest (Paid)/Received	36,023	40,450	43,966	49,161
Tax Paid	(37,952)	(42,263)	(46,525)	(51,231)
Cashflow From Operations	202,092	143,620	200,648	246,567
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)	(34,823)	(40,827)	(45,029)
Preferred Dividends
Other Financing Cashflow	4,555	0	0	0
Cash Flow From Financing	(29,955)	(39,823)	(45,827)	(45,529)
Total Cash Generated	52,654	(13,816)	37,822	25,569
Free Cashflow To Equity	78,111	21,006	78,648	70,598
Free Cashflow To Firm	85,114	28,706	87,148	75,098

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	238,800	199,089	243,911	269,480
Total Debtors	57,256	76,748	96,589	107,335
Inventories	103,333	127,913	138,585	154,002
Total Other Current Assets	47,709	54,209	60,709	67,209
Total Current Assets	447,098	457,958	539,793	598,025
Fixed Assets	251,835	303,778	325,750	405,750
Total Investments	223,786	250,786	280,786	310,786
Intangible Assets
Total Other Non-Current Assets
Total Non-current Assets	475,621	554,564	606,536	716,536
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	234,058	245,703	268,077	308,826
Other Current Liabilities
Total Current Liabilities	234,058	245,703	268,077	308,826
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	298,505	317,379	359,128
Shareholders Equity	615,851	714,018	828,950	955,433
Minority Interests
Total Equity	615,851	714,018	828,950	955,433

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	17.0%	14.4%	14.9%	11.1%
Operating EBITDA Growth	25.1%	11.2%	13.1%	10.5%
Operating EBITDA Margin	14.8%	14.3%	14.1%	14.0%
Net Cash Per Share (Rs)	203.75	172.66	217.29	240.64
BVPS (Rs)	551.68	639.62	742.58	855.89
Gross Interest Cover	51.82	53.08	45.23	43.40
Effective Tax Rate	22.9%	23.0%	23.0%	23.0%
Net Dividend Payout Ratio	23.5%	24.6%	26.2%	26.3%
Accounts Receivables Days	16.09	18.33	20.64	21.85
Inventory Days	41.93	42.35	42.25	41.69
Accounts Payables Days	88.77	87.87	81.45	82.19
ROIC (%)	44.8%	47.5%	37.5%	36.8%
ROCE (%)	21.6%	20.6%	19.8%	19.0%
Return On Average Assets	15.4%	14.8%	14.7%	14.2%

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

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

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Market Data

Source: Bloomberg