SML Mahindra Limited

    SML Mahindra Limited

    NNSE:SMLISUZU
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    INR
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    21.60P/E

    Valuation Ratios

    As of June 30, 2025, SML Mahindra Limited trades at a trailing price-to-earnings ratio of 21.60.

    PE Ratio21.60
    PS Ratio1.24

    Enterprise Valuation

    As of June 30, 2025, SML Mahindra Limited trades at an EV/EBITDA multiple of 14.59 - the valuation measure that neutralizes differences in capital structure, tax rates, and depreciation policy, making it the standard yardstick for comparing companies across an industry. The EV/Sales ratio of 1.24 reflects the premium investors pay for the company's revenue stream, a useful check when earnings are depressed or negative. Its EV/EBIT multiple of 14.59 values the business against core operating earnings after depreciation, a stricter test than EV/EBITDA for capital-intensive businesses. SML Mahindra Limited trades at an EV/FCF ratio of 156.10, comparing the total takeover cost of the business to the cash it actually generates for all capital providers.

    EV / Sales1.24
    EV / EBITDA14.59
    EV / EBIT14.59
    EV / FCF156.10

    Financial Position

    As of June 30, 2025, SML Mahindra Limited maintains a current ratio of 2.30, meaning it holds 2.3x the short-term assets needed to cover near-term liabilities. The debt-to-equity ratio is 173.55, indicating elevated leverage, while an interest coverage ratio of 8.01 demonstrates adequate ability to service its debt obligations.

    Current Ratio2.30
    Quick Ratio0.09
    Debt / Equity173.55
    Interest Coverage8.01

    Financial Efficiency

    These figures cover the twelve months ended June 30, 2025. Return on capital employed (ROCE) is 68.37, useful for judging operating efficiency across full business cycles.

    Return on Capital Employed (ROCE)68.37

    Taxes

    These figures cover the twelve months ended June 30, 2025. That works out to an effective tax rate of 25.12, which can sit above or below the statutory corporate tax rate depending on foreign earnings mix, tax credits, and one-off items.

    Effective Tax Rate25.12

    Margins

    Over the twelve months ended June 30, 2025, SML Mahindra Limited posted a gross margin of 23.76, reflecting its pricing power and cost economics. The operating margin of 8.48 and net profit margin of 5.73 provide insight into operational efficiency.

    Gross Margin23.76
    Operating Margin8.48
    Pretax Margin7.65
    Profit Margin5.73
    EBITDA Margin8.48

    Scores

    As of June 30, 2025, SML Mahindra Limited has an Altman Z-Score of 8.16, well above the 3.0 threshold that indicates strong financial health and minimal bankruptcy risk.

    Altman Z-Score8.16