{"id":323843,"date":"2026-10-22T12:48:57","date_gmt":"2026-10-22T07:18:57","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=323843"},"modified":"2026-10-22T12:48:57","modified_gmt":"2026-10-22T07:18:57","slug":"sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/","title":{"rendered":"SML Mahindra Share Price Falls for a Third Session in a Row: Buy, Sell or Hold?"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>SML Mahindra share price hit the 10% lower circuit at Rs 4,951 on 22 Oct 2026, down Rs 550 from the previous close of Rs 5,501, with 21,556 shares on the sell side and no buyers at 12:31 PM IST. It is the third straight session of falls after Q2 FY27 results on 19 Oct showed profit down 44% to Rs 11.70 crore. The company has not given a separate reason for the three-day fall.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">SML Mahindra share price hit the 10% lower circuit at Rs 4,951 after Q2 FY27 profit fell about 44% to Rs 11.70 crore even as revenue rose 20.66% to Rs 669.79 crore. The EBITDA margin shrank to 4.22% from 7.6% a year earlier because higher raw material costs outpaced sales growth. At Rs 4,951 the stock trades near 49 times trailing earnings by my calculation, against an industry multiple of about 28 times. A premium valuation and a profit squeeze make this a stock for careful watching and not for quick buying.<\/p>\n<\/p><\/div>\n<p>SML Mahindra share price has now fallen for three sessions because investors are reacting to a quarter in which sales rose but profit fell sharply, and the shares were priced for better. The stock opened at Rs 5,200, which was also its high, and slid to the lower circuit at Rs 4,951 with only sellers in the order book.<\/p>\n<p>This article on SML Mahindra share price explains the Q2 FY27 numbers, why margins fell, how the valuation looks after the drop and what a buy, sell or hold decision depends on. It is educational and not a recommendation, and I flag every estimate that is my own.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#SML_Mahindra_Share_Price_Today_Lower_Circuit_Details\" title=\"SML Mahindra Share Price Today: Lower Circuit Details\">SML Mahindra Share Price Today: Lower Circuit Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#SML_Mahindra_Share_Price_and_the_Q2_FY27_Results\" title=\"SML Mahindra Share Price and the Q2 FY27 Results\">SML Mahindra Share Price and the Q2 FY27 Results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#Why_Did_the_Margin_Fall\" title=\"Why Did the Margin Fall?\">Why Did the Margin Fall?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#SML_Mahindra_Share_Price_Valuation\" title=\"SML Mahindra Share Price Valuation\">SML Mahindra Share Price Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#SML_Mahindra_Share_Price_Buy_Sell_or_Hold\" title=\"SML Mahindra Share Price: Buy, Sell or Hold?\">SML Mahindra Share Price: Buy, Sell or Hold?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#SML_Mahindra_Share_Price_Scenarios_From_Here\" title=\"SML Mahindra Share Price: Scenarios From Here\">SML Mahindra Share Price: Scenarios From Here<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#What_to_Watch_Next_on_the_SML_Mahindra_Share_Price\" title=\"What to Watch Next on the SML Mahindra Share Price\">What to Watch Next on the SML Mahindra Share Price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#Why_is_the_SML_Mahindra_share_price_falling\" title=\"Why is the SML Mahindra share price falling?\">Why is the SML Mahindra share price falling?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#What_were_the_Q2_FY27_results_of_SML_Mahindra\" title=\"What were the Q2 FY27 results of SML Mahindra?\">What were the Q2 FY27 results of SML Mahindra?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#Is_the_SML_Mahindra_share_price_expensive\" title=\"Is the SML Mahindra share price expensive?\">Is the SML Mahindra share price expensive?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#What_is_the_52-week_range_of_the_SML_Mahindra_share_price\" title=\"What is the 52-week range of the SML Mahindra share price?\">What is the 52-week range of the SML Mahindra share price?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#Is_demand_weak_for_SML_Mahindra\" title=\"Is demand weak for SML Mahindra?\">Is demand weak for SML Mahindra?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#Should_I_buy_sell_or_hold_after_the_SML_Mahindra_share_price_fall\" title=\"Should I buy, sell or hold after the SML Mahindra share price fall?\">Should I buy, sell or hold after the SML Mahindra share price fall?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#What_should_I_watch_for_the_SML_Mahindra_share_price_next\" title=\"What should I watch for the SML Mahindra share price next?\">What should I watch for the SML Mahindra share price next?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/sml-mahindra-share-price-falls-for-third-session-in-a-row-after-q2-fy27-profit-drop-buy-sell-or-hold\/#Is_this_article_investment_advice\" title=\"Is this article investment advice?\">Is this article investment advice?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"SML_Mahindra_Share_Price_Today_Lower_Circuit_Details\"><\/span><strong>SML Mahindra Share Price Today: Lower Circuit Details<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">SML Mahindra share price: point<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Level on 22 Oct 2026<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Previous close<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 5,501<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Open and day high<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 5,200<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Day low and last price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 4,951, the lower circuit<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Change<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Down Rs 550 or 10.00%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Volume by 12:31 PM<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 2.72 lakh shares<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Sell queue, no buy orders<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">21,556 shares<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">52-week range<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 2,719 to Rs 6,898.50<\/td>\n<\/tr>\n<\/table>\n<p>On the BSE the stock was at Rs 4,963.30, also down 10%. The price is about 28% below the 52-week high of Rs 6,898.50 and still about 82% above the 52-week low of Rs 2,719 (my calculation), so the stock remains far above where it traded a year ago despite three weak sessions. A lower circuit with no buyers means supply exceeds demand at the floor, so the next session may open lower or recover depending on whether new buyers come in.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Track stocks in lower circuit on the Univest screeners page<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"SML_Mahindra_Share_Price_and_the_Q2_FY27_Results\"><\/span><strong>SML Mahindra Share Price and the Q2 FY27 Results<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">SML Mahindra share price: Q2 FY27 metric<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Q2 FY26<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Q2 FY27<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Change<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Revenue from operations (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">555.11<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">669.79<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 20.66%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Total expenses (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">528.95<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">655.54<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 24% (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">EBITDA (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">42.20<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">28.30<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Down about 33% (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">EBITDA margin<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">7.6%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">4.22%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Down about 3.4 points<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Net profit (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">21.05<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">11.70<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Down about 44%<\/td>\n<\/tr>\n<\/table>\n<p>Compared with the first quarter, revenue fell about 30% from Rs 957.54 crore and profit fell about 82% from Rs 63.62 crore, by my calculation. For the first half, revenue was Rs 1,627.33 crore against Rs 1,401.00 crore, and profit was Rs 75.32 crore against Rs 88.01 crore, down 14.4%. Different reports round the Q2 profit fall to 43%, 44% or 44.5%, which is a rounding difference around Rs 11.70 crore and not a real conflict. The filing does not explain the fall in revenue from the first quarter, so the reason is unknown.<\/p>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to follow results and stock alerts.<\/em><\/p>\n<p><strong>Risk:<\/strong> Sales growth with falling profit shows costs are rising faster than prices, which can keep pressure on margins until pricing catches up.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Did_the_Margin_Fall\"><\/span><strong>Why Did the Margin Fall?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">SML Mahindra share price: margin driver<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">What the reports say<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Raw material costs<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Higher raw material consumption pushed expenses up faster than sales<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Demand<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Steady demand for trucks and buses supported revenue growth<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Sequential fall<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Q2 revenue was well below Q1, and the filing gives no reason<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Unaudited results<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The results exclude any adjustments from a pending acquisition, expected to complete by Jan 2027<\/td>\n<\/tr>\n<\/table>\n<p>The pending acquisition mentioned in one report is not explained there, and I could not confirm what it covers, so I do not draw any conclusion from it. What the numbers show is clear: total expenses grew about 24% while revenue grew 20.66%, and that gap took the EBITDA margin from 7.6% to 4.22%. The SML Mahindra share price is falling because the quarter shows weaker profitability, not because of weak demand, and the SML Mahindra share price may stay under pressure until margins recover.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"SML_Mahindra_Share_Price_Valuation\"><\/span><strong>SML Mahindra Share Price Valuation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">SML Mahindra share price: valuation measure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Figure<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market capitalisation at Rs 5,501<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 7,980 crore<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market capitalisation at Rs 4,951<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 7,180 crore (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Trailing EPS<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 101.63<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">P\/E at Rs 4,951<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 48.7 times (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Industry P\/E<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">27.76 times<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Book value per share<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 386.94<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to book at Rs 4,951<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 12.8 times (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Return on equity and debt to equity<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">26.26% and 0.07<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Dividend yield<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">0.43%<\/td>\n<\/tr>\n<\/table>\n<p>The data feed lists these figures under an older company name, and the numbers match the earlier price of Rs 5,501, so I recalculated the multiples at today&#8217;s price. At about 49 times earnings the SML Mahindra share price still carries a large premium to the industry, even after a 10% drop. A return on equity of 26% and almost no debt justify some premium, but trailing earnings include the strong first quarter, and Q2 profit was about 44% lower than a year ago, so forward earnings may be lower (my reading).<\/p>\n<p><strong>Risk:<\/strong> A high multiple on falling profit leaves the stock open to a further de-rating if the next quarter does not show a margin recovery.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"SML_Mahindra_Share_Price_Buy_Sell_or_Hold\"><\/span><strong>SML Mahindra Share Price: Buy, Sell or Hold?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">SML Mahindra share price: investor type (my reading)<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Points to weigh<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Existing holder with a large gain<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The stock is still about 82% above its 52-week low; decide whether the margin squeeze changes your view, and consider booking part of the gain<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">New buyer<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A 49 times P\/E and falling profit argue for patience until margins recover or the price steadies<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Short-term trader<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A lower circuit with no buyers is a falling market; wait for signs of buyers before taking a view<\/td>\n<\/tr>\n<\/table>\n<p>This is an educational view and not advice. The business has a strong return on equity, little debt and steady truck and bus demand, which are real positives. The negatives are the margin squeeze, a high valuation and a three-session fall that has not yet found buyers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"SML_Mahindra_Share_Price_Scenarios_From_Here\"><\/span><strong>SML Mahindra Share Price: Scenarios From Here<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">SML Mahindra share price: scenario (my reading)<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">What would need to happen<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Likely effect<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Recovery<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Buyers return near Rs 4,950 and the company signals price increases to recover margins<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A bounce, though the premium valuation may cap it<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Consolidation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Selling slows and the stock trades in a range after three falls<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Sideways trade while the market waits for Q3 margins<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Deeper fall<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Raw material costs stay high and the next quarter confirms thin margins<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A further de-rating toward a lower multiple<\/td>\n<\/tr>\n<\/table>\n<p>These scenarios are my reading and not forecasts. The SML Mahindra share price sits at a premium to the industry, so the gap to a lower multiple is the main risk. At 28 times earnings, the industry multiple, the stock would be about 43% lower than Rs 4,951 on the same earnings (my calculation), which shows how much of the price depends on growth. The opposite case is that earnings recover and the premium holds. A lower circuit also means the 10% band is the most the stock can fall in one session, so a fall can be spread over several days instead of one.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_Watch_Next_on_the_SML_Mahindra_Share_Price\"><\/span><strong>What to Watch Next on the SML Mahindra Share Price<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Whether buyers appear for the SML Mahindra share price on the next session or the lower circuit persists<\/li>\n<li>Management comment on raw material costs and price increases<\/li>\n<li>Volumes and order trends for trucks and buses in the next quarter<\/li>\n<li>The EBITDA margin against the 4.22% in Q2 FY27 and the 7.6% a year ago<\/li>\n<li>Details of the pending acquisition and its effect on the SML Mahindra share price when it completes<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The SML Mahindra share price hit the lower circuit after a quarter in which revenue rose 20.66% but profit fell about 44% as costs outran sales. The valuation near 49 times earnings leaves little cushion, and the company has not explained the sequential fall in revenue. Read the filings, wait for margin evidence and size any decision to your own risk.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> 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).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Why_is_the_SML_Mahindra_share_price_falling\"><\/span><strong>Why is the SML Mahindra share price falling?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The stock hit the 10% lower circuit at Rs 4,951 after Q2 FY27 results showed profit down about 44% to Rs 11.70 crore on a margin squeeze. The company has not given a separate reason for the three-day fall.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_were_the_Q2_FY27_results_of_SML_Mahindra\"><\/span><strong>What were the Q2 FY27 results of SML Mahindra?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Revenue rose 20.66% to Rs 669.79 crore, so the SML Mahindra share price fell on profit, not sales. EBITDA fell to Rs 28.30 crore, the EBITDA margin was 4.22% against 7.6% and net profit fell about 44% to Rs 11.70 crore.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_SML_Mahindra_share_price_expensive\"><\/span><strong>Is the SML Mahindra share price expensive?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> At Rs 4,951 the P\/E is about 48.7 times by my calculation, against an industry P\/E of 27.76, and the price to book is about 12.8 times. A 26% return on equity explains part of the premium.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_52-week_range_of_the_SML_Mahindra_share_price\"><\/span><strong>What is the 52-week range of the SML Mahindra share price?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The range is Rs 2,719 to Rs 6,898.50. At Rs 4,951 the stock is about 28% below the high and about 82% above the low, by my calculation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_demand_weak_for_SML_Mahindra\"><\/span><strong>Is demand weak for SML Mahindra?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Not according to the reports. Revenue grew 20.66% on steady demand for trucks and buses. The problem is that costs, mainly raw materials, grew faster than sales.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Should_I_buy_sell_or_hold_after_the_SML_Mahindra_share_price_fall\"><\/span><strong>Should I buy, sell or hold after the SML Mahindra share price fall?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> That depends on your horizon and risk limit. Strong returns and low debt support holders of the SML Mahindra share price, but a 49 times P\/E and falling profit argue for patience for new buyers. This is not advice.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_should_I_watch_for_the_SML_Mahindra_share_price_next\"><\/span><strong>What should I watch for the SML Mahindra share price next?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Watch whether buyers appear after the lower circuit, the EBITDA margin in the next quarter, raw material costs and details of the pending acquisition expected by Jan 2027.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_this_article_investment_advice\"><\/span><strong>Is this article investment advice?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Why is the SML Mahindra share price falling?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The stock hit the 10% lower circuit at Rs 4,951 after Q2 FY27 results showed profit down about 44% to Rs 11.70 crore on a margin squeeze. The company has not given a separate reason for the three-day fall.\"}},{\"@type\":\"Question\",\"name\":\"What were the Q2 FY27 results of SML Mahindra?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Revenue rose 20.66% to Rs 669.79 crore, so the SML Mahindra share price fell on profit, not sales. 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Please check the figures against company filings and your own risk profile before you act on anything you read here.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>SML Mahindra share price hit the lower circuit at Rs 4,951 after Q2 FY27 profit fell 44%. Results, margin squeeze, valuation near 49 times earnings and a buy, sell or hold view.<\/p>\n","protected":false},"author":38,"featured_media":323840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[14837,4208,1278,14855,14854,14856,14853,14858,14839,14857],"class_list":["post-323843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-buy-sell-or-hold","tag-commercial-vehicle-stocks","tag-small-cap-stocks","tag-sml-mahindra-lower-circuit","tag-sml-mahindra-q2-fy27-results","tag-sml-mahindra-share-falls","tag-sml-mahindra-share-price","tag-sml-mahindra-target-price","tag-stocks-falling-today","tag-trucks-and-buses"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["323840"],"rank_math_title":["SML Mahindra Share Price Hits Lower Circuit: Buy, Sell, Hold?"],"rank_math_description":["SML Mahindra share price hit the 10% lower circuit at Rs 4,951 after Q2 FY27 profit fell 44%. See results, margin squeeze, valuation near 49x earnings and risks."],"rank_math_focus_keyword":["SML Mahindra share price"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/10\/sml-mahindra-share-price-falls-for-a-third-session-in-a-row-buy-sell-or-hold.webp","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/323843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=323843"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/323843\/revisions"}],"predecessor-version":[{"id":323844,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/323843\/revisions\/323844"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/323840"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=323843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=323843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=323843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}