Is Mahindra and Mahindra Financial Services the Best Stock in Its Sector? A Look at the Numbers
- September 16, 2026
- Posted by: Harsh Piplani
- Category: Market
Mahindra and Mahindra Financial Services CMP Rs 344 (16 Sep 2026). Market cap Rs 47,558 Cr. ROE 10.72%. P/E 14.59x versus Industry P/E 19.15x.
Quick Answer
Mahindra and Mahindra Financial Services is one of the names investors compare when screening the Finance sector, built on a 10.72% return on equity and a P/E of 14.59x against an Industry P/E of 19.15x. Mahindra and Mahindra Financial Services Ltd is an NBFC providing vehicle and tractor finance along with SME and housing loans, largely serving semi-urban and rural India. Whether Mahindra and Mahindra Financial Services is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named Finance sector peers, so you can judge that for yourself.
Is Mahindra and Mahindra Financial Services the best stock in its sector? The stock trades on the NSE at Rs 344 as of 16 September 2026, within its 52-week range of Rs 267.00 to Rs 415.00. Mahindra and Mahindra Financial Services Ltd is an NBFC providing vehicle and tractor finance along with SME and housing loans, largely serving semi-urban and rural India.
Mahindra and Mahindra Financial Services sits in the Finance sector, and its 10.72% ROE and 14.59x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector’s Industry P/E benchmark.
Also read – Is Abbott India the Best Stock in Its Sector? A Look at the Numbers
Click Here – Get Free Investment Predictions
About Mahindra and Mahindra Financial Services
Mahindra and Mahindra Financial Services Ltd is an NBFC providing vehicle and tractor finance along with SME and housing loans, largely serving semi-urban and rural India. At a market capitalisation of Rs 47,558 Cr, it is tracked as part of the Finance sector on Univest.
Is Mahindra and Mahindra Financial Services the Best Stock in Its Sector?
Mahindra and Mahindra Financial Services makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, combining a 10.72% ROE with a 14.59x P/E against the sector’s 19.15x Industry P/E. Mahindra Finance’s 14.59x P/E is below the 19.15x Industry P/E, though its 10.72% ROE trails Capri Global and IIFL Capital Services in this series, and its leverage is meaningfully higher than most NBFC peers.
| Metric | Mahindra and Mahindra Financial Services |
|---|---|
| CMP (NSE) | Rs 343.80 |
| 52-Week High / Low | Rs 415.00 / Rs 267.00 |
| Market Cap | Rs 47,558 Cr |
| P/E (TTM) vs Industry P/E | 14.59x vs 19.15x |
| P/B | 1.79 |
| ROE | 10.72% |
| EPS (TTM) | Rs 23.45 |
| Dividend Yield | 2.19% |
| Debt to Equity | 4.82 |
Compare Mahindra and Mahindra Financial Services Against Other Finance Sector Stocks
How Mahindra and Mahindra Financial Services Compares Against Its Finance Sector Peers
The table below sets Mahindra and Mahindra Financial Services against 3 other Finance sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 3 peer companies.
| Company | Market Cap (Rs Cr) | P/E | ROE | Debt to Equity |
|---|---|---|---|---|
| Mahindra and Mahindra Financial Services | 47,558 | 14.59 | 10.72% | 4.82 |
| Capri Global Capital | 25,603 | 22.70 | 13.18% | 3.35 |
| Poonawalla Fincorp | 39,137 | 49.71 | 5.24% | 4.68 |
| Manappuram Finance | 30,904 | 21.38 | 6.25% | 3.60 |
| Peer average (3 companies) | – | 31.26 | 8.22% | 3.88 |
Against this peer set, Mahindra and Mahindra Financial Services’s 10.72% ROE is above the 8.22% peer average, and its P/E of 14.59x runs below the peer average of 31.26x. Mahindra Finance’s 14.59x P/E is below the 19.15x Industry P/E, though its 10.72% ROE trails Capri Global and IIFL Capital Services in this series, and its leverage is meaningfully higher than most NBFC peers.
What Makes Mahindra and Mahindra Financial Services Worth Watching in Finance
- Below Industry P/E: A 14.59x P/E against a 19.15x Industry P/E makes it one of the more reasonably priced NBFCs compared here.
- Rural and semi-urban lending franchise: Deep distribution in rural and semi-urban India gives Mahindra Finance a lending franchise that is difficult for city-focused NBFCs to replicate.
- Leverage typical for a vehicle financier: A debt to equity ratio of 4.82 is on the higher side even for an NBFC, reflecting its large vehicle and tractor loan book.
Mahindra and Mahindra Financial Services Valuation: Is It Justified?
Mahindra Finance’s 14.59x P/E is below the 19.15x Industry P/E, though its 10.72% ROE trails Capri Global and IIFL Capital Services in this series, and its leverage is meaningfully higher than most NBFC peers. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.
Also read – Is Bata India the Best Stock in Its Sector? A Look at the Numbers
Download the Univest iOS App or Univest Android App to track Mahindra and Mahindra Financial Services and other Finance sector stocks.
How to Track Mahindra and Mahindra Financial Services Before You Invest
Before deciding whether Mahindra and Mahindra Financial Services deserves its label as the best stock in its sector for your own portfolio, compare it directly against Finance sector peers using the steps below.
- Open the Univest Screener and search for Mahindra and Mahindra Financial Services to view live price, valuation ratios, and peer comparisons within the Finance sector.
- Compare its P/E, P/B, and ROE against other Finance sector stocks before deciding if the current valuation fits your strategy.
- Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
- Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.
Conclusion
Mahindra and Mahindra Financial Services earns a place in the best stock in its sector conversation on the strength of a 10.72% ROE and a P/E of 14.59x against a 19.15x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Is Mahindra and Mahindra Financial Services the best stock in its sector?
Ans. Mahindra and Mahindra Financial Services has a 10.72% ROE and trades at 14.59x P/E against a 19.15x Industry P/E, and compares above the peer average ROE of 8.22% in this article’s named comparison, so the answer depends on what an investor is prioritising.
What is the current share price of Mahindra and Mahindra Financial Services?
Ans. Mahindra and Mahindra Financial Services was trading at Rs 343.80 on the NSE as of 16 September 2026, within its 52-week range of Rs 267.00 to Rs 415.00.
What sector does Mahindra and Mahindra Financial Services belong to?
Ans. Mahindra and Mahindra Financial Services is classified under the Finance sector on Univest.
How does Mahindra and Mahindra Financial Services compare to its sector peers on P/E?
Ans. Mahindra and Mahindra Financial Services’s P/E of 14.59x is below the 31.26x average of the 3 named peers compared in this article.
What is Mahindra and Mahindra Financial Services’s return on equity?
Ans. Mahindra and Mahindra Financial Services reported a return on equity of 10.72%, which is above the 8.22% average of its named peers in this comparison.
Should I invest in Mahindra and Mahindra Financial Services based on its sector position?
Ans. Mahindra and Mahindra Financial Services’s sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.
