ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Mahindra & Mahindra Financial Services ROE % Related Terms
Mahindra & Mahindra Financial Services ROE % Historical Data
* 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.
For the Credit Services subindustry, Mahindra & Mahindra Financial Services's ROE %, along with its competitors' market caps and ROE % 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.
Mahindra & Mahindra Financial Services ROE % vs Credit Services Industry
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Mahindra & Mahindra Financial Services (NSE:M&MFIN) has a ROE % of 14.09% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mahindra & Mahindra Financial Services and its competitors. This is 34% above median its historical median of 10.48. Over the past decade, Mahindra & Mahindra Financial Services' ROE % has ranged from 5.57 to 17.30. According to the industry distribution chart, Mahindra & Mahindra Financial Services ranks #157 out of 529 companies in the Credit Services industry, placing it in the top 29.7%.
Is Mahindra & Mahindra Financial Services' ROE % too high?
Mahindra & Mahindra Financial Services' current ROE % of 14.09% is 34% above median its 10-year median of 10.48. Over the past 10 years, this metric has ranged from a low of 5.57 to a high of 17.30. The Credit Services industry median ROE % is 6.61. Mahindra & Mahindra Financial Services' value of 14.09% is 113.2% above this industry median. Based on the distribution chart, Mahindra & Mahindra Financial Services ranks #157 out of 529 companies in the Credit Services industry, which is above the industry midpoint. Overall, Mahindra & Mahindra Financial Services has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mahindra & Mahindra Financial Services' ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Mahindra & Mahindra Financial Services ranks #157 out of 529 companies for ROE %. This puts Mahindra & Mahindra Financial Services in the upper half of its industry. The industry median ROE % is 6.61. Mahindra & Mahindra Financial Services' value of 14.09% is 113.2% above this benchmark. Historically, Mahindra & Mahindra Financial Services' own ROE % has ranged from 5.57 to 17.30 over the past decade. While the company's 10-year median is 10.48 vs. the industry median of 6.61, Mahindra & Mahindra Financial Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mahindra & Mahindra Financial Services's current ROE % of 14.09% is 113.2% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mahindra & Mahindra Financial Services and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mahindra & Mahindra Financial Services's current ROE % is 14.09%, which is 34% above median its own 10-year median of 10.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mahindra & Mahindra Financial Services stock overvalued right now?
Based on GuruFocus' analysis, Mahindra & Mahindra Financial Services (NSE:M&MFIN) is currently considered Fairly Valued. The stock's GF Value™ is ₹353.97, compared to a current price of ₹328.55 — trading 7.2% below its estimated fair value. The current ROE % is 14.09%, which is 34% above median its 10-year median of 10.48 and 113.2% above the Credit Services industry median of 6.61. Mahindra & Mahindra Financial Services' overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Mahindra & Mahindra Financial Services (NSE:M&MFIN), the current ROE % is 14.09% 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 Mahindra & Mahindra Financial Services (NSE:M&MFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Mahindra & Mahindra Financial Services stock appears to be undervalued.
The current stock price of ₹328.55 is trading 7.2% below its estimated GF Value™ of ₹353.97.
GuruFocus considers Mahindra & Mahindra Financial Services to be Fairly Valued.
Key valuation signals for NSE:M&MFIN:
ROE %: 14.09% (34% above median its 10-year median of 10.48)
GF Value™: ₹353.97 vs. price of ₹328.55 (7.2% below fair value)
Industry Position: 113.2% above the Credit Services median (#157 of 529)
No single metric tells the full story. See the NSE:M&MFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mahindra & Mahindra Financial Services Business Description
Mahindra & Mahindra Financial Services Ltd is a nonbanking financial company engaged in financing new and pre-owned auto, utility vehicles, tractors, passenger cars and commercial vehicles through its pan India branch network. The company has a diversified lending portfolio across retail, small and medium enterprises and commercial customers with a presence in rural and semi-urban India. The company has two segments : Financing Activities, that includes financing and leasing of automobiles, tractors, commercial vehicles, SMEs and housing finance.; and Other reconciling items which consists insurance broking, asset management services and trusteeship services. It derives maximum revenue from Financing Activities.
73GF Score
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