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SML Mahindra's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 27.47.
SML Mahindra's Days Inventory for the
three
months ended in Mar. 2026 was 85.58.
SML Mahindra's Days Payable for the
three
months ended in Mar. 2026 was 52.53.
Therefore, SML Mahindra's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 60.52.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
SML Mahindra Cash Conversion Cycle Related Terms
SML Mahindra Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for SML Mahindra's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:SMLMAH vs TSLA, GM, F: Cash Conversion Cycle Comparison
For the Auto Manufacturers subindustry, SML Mahindra's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SML Mahindra Cash Conversion Cycle vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SML Mahindra's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where SML Mahindra's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
SML Mahindra's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SML Mahindra (NSE:SMLMAH) has a Cash Conversion Cycle of 60.52 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on SML Mahindra and its competitors.
Is SML Mahindra's Cash Conversion Cycle too high?
SML Mahindra's current Cash Conversion Cycle is 60.52. The Vehicles & Parts industry median Cash Conversion Cycle is 67.23. SML Mahindra's value of 60.52 is 10% below this industry median. Overall, SML Mahindra has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SML Mahindra's Cash Conversion Cycle compare to TSLA and GM?
SML Mahindra's Cash Conversion Cycle of 60.52 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.23. SML Mahindra's value of 60.52 is 10% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Vehicles & Parts company?
The median Cash Conversion Cycle among Vehicles & Parts companies is 67.23, based on 1,322 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SML Mahindra's current Cash Conversion Cycle of 60.52 is 10% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on SML Mahindra and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SML Mahindra's current Cash Conversion Cycle is 60.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SML Mahindra stock overvalued right now?
Based on GuruFocus' analysis, SML Mahindra (NSE:SMLMAH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2,415.53, compared to a current price of ₹4,087.30 — trading 69.2% above its estimated fair value. The current Cash Conversion Cycle is 60.52 and 10% below the Vehicles & Parts industry median of 67.23. SML Mahindra's overall GF Score™ is 65/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For SML Mahindra (NSE:SMLMAH), the current Cash Conversion Cycle is 60.52 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SML Mahindra (NSE:SMLMAH) Overvalued in 2026?
Based on GuruFocus' analysis, SML Mahindra stock appears to be overvalued.
The current stock price of ₹4,087.30 is trading 69.2% above its estimated GF Value™ of ₹2,415.53.
GuruFocus considers SML Mahindra to be Significantly Overvalued.
Key valuation signals for NSE:SMLMAH:
Cash Conversion Cycle: 60.52
GF Value™: ₹2,415.53 vs. price of ₹4,087.30 (69.2% above fair value)
Industry Position: 10% below the Vehicles & Parts median
No single metric tells the full story. See the NSE:SMLMAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SML Mahindra Ltd, formerly SML Isuzu Ltd is engaged in the business of manufacturing and selling of commercial vehicles including light and medium-duty trucks, buses, ambulances, and specialized vehicles. The company integrates Japanese technology with local manufacturing to offer reliable and cost-effective transportation solutions. Its product portfolio spans cargo trucks and passenger buses with variants that support different industries such as education, tourism, and corporate transport. Revenue is majorly generated through the sale of vehicles and after-sales services including telematics support. The company operates predominantly in India and exports to several countries across Africa and Asia.
65GF Score
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