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Today's prices ask more of Bajaj Auto than of Mahindra & Mahindra.
At current prices, buyers of Bajaj Auto are assuming about 7% growth against 19% in its own record; for Mahindra & Mahindra it is 0% against 20%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: Bajaj Auto on discounted cash flow; Mahindra & Mahindra on estimate withheld.
- Size: the two are worth roughly the same on the stock market.
- Record: Bajaj Auto has grown revenue faster: Bajaj Auto compounded at about 12% a year (FY2018–FY2026) and Mahindra & Mahindra at about 10% (FY2018–FY2026).
- What to watch: export demand at Bajaj Auto; suv volumes and margins at Mahindra & Mahindra.
| Bajaj Auto | Mahindra & Mahindra | |
|---|---|---|
| Price | ₹10,945 | ₹3,399 |
| Market cap | ₹3.01L Cr | ₹3.80L Cr |
| P/E | 23.0 | 19.6 |
| P/B | 7.75 | 4.08 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Estimate withheld |
01Two businesses
Motorcycles, three-wheelers and exports
Bajaj Auto makes motorcycles such as the Pulsar, Platina and Dominar, the Chetak electric scooter and India's best-selling three-wheelers. It also builds and sells motorcycles in partnership with KTM and Triumph.
Tractors, SUVs and a group around them
Mahindra & Mahindra is India's largest tractor maker by volume and a leading maker of SUVs and light commercial vehicles — the Thar, Scorpio-N, XUV700 and XUV 3XO, and electric SUVs under the BE and XEV names. Its farm business also sells tractors abroad.
02The records side by side
Bajaj Auto has grown revenue faster: Bajaj Auto compounded at about 12% a year (FY2018–FY2026) and Mahindra & Mahindra at about 10% (FY2018–FY2026). By revenue, Mahindra & Mahindra is about 3.2 times the size of Bajaj Auto. Bajaj Auto kept 16.8% of revenue as net profit in FY2026; Mahindra & Mahindra kept 9.4% of revenue as net profit in FY2026. Bajaj Auto was profitable in every year shown; Mahindra & Mahindra reported a net loss in FY2020.
Full ten-year tables and charts are on each company's page: Bajaj Auto · Mahindra & Mahindra.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Export demandExports are a big share of volumes, and currencies in markets such as Nigeria can swing them sharply.
- Premium motorcyclesHigher-priced models carry better margins than commuter bikes.
- SUV volumes and marginsSUVs are where most of the recent profit growth has come from; holding waiting lists and pricing matters more than volume alone.
- The tractor cycleTractor demand follows the monsoon, crop prices and rural credit, so farm profits swing year to year.
05What could go wrong
- Emerging-market currenciesDevaluations hit export volumes and margins.
- EV competitionStart-ups and incumbents are crowding the electric scooter market.
- A weak monsoonPoor rains hit tractor sales and rural lending at the same time.
- SUV competitionEvery major carmaker is now targeting the segment Mahindra leads.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Bajaj Auto or Mahindra & Mahindra better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Bajaj Auto trades at 23.0 times earnings and 7.75 times book value, and Mahindra & Mahindra at 19.6 times earnings and 4.08 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Bajaj Auto and Mahindra & Mahindra?
Bajaj Auto makes motorcycles such as the Pulsar, Platina and Dominar, the Chetak electric scooter and India's best-selling three-wheelers. Mahindra & Mahindra is India's largest tractor maker by volume and a leading maker of SUVs and light commercial vehicles — the Thar, Scorpio-N, XUV700 and XUV 3XO, and electric SUVs under the BE and XEV names.
Are Bajaj Auto and Mahindra & Mahindra valued the same way?
No. Bajaj Auto is valued on discounted cash flow and Mahindra & Mahindra on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Bajaj Auto and Mahindra & Mahindra?
Worked backwards from the share price, Bajaj Auto needs about 7% growth and Mahindra & Mahindra about 0% growth, against 19% and 20% in their own records.