Title: Calculator of Beta of a Mahindra & Mahindra and Its Significance
Author – Mrigank Yadav- 54
Objective: Calculator of beta and observe its significance.
Introduction – Mahindra & Mahindra (M&M) is a major Indian multinational company founded in 1945 and headquartered in Mumbai. It is globally recognised as the world’s largest tractor manufacturer by volume and is a leader in India’s SUV market with popular models like the Thar and Scorpio. Beyond vehicles, the group operates in over 20 industries, including information technology (Tech Mahindra), financial services, and hospitality.
With a presence in more than 100 countries, it employs over 300,000 people and is guided by its “Rise” philosophy to drive positive change. As of 2026, the company is heavily focusing on electric vehicles and green energy to lead the shift toward sustainable transport. Overall, M&M remains one of India’s most trusted industrial houses, connecting rural farming with modern urban tech.
Literature Review: Mahindra & Mahindra (M&M) is a leading Indian multinational company known for making popular SUVs like the Thar and Scorpio. It is also the world’s largest tractor manufacturer and operates in many sectors like IT, finance, and green energy. The company is highly trusted for its strong engineering and its focus on bringing electric vehicles to the Indian market.
A study on the Indian automobile sector by JETIR (2021) found that the beta coefficient is an essential tool to measure how much a stock reacts to market changes. The research showed that Mahindra & Mahindra maintains a balanced risk profile, indicating that its stock is generally stable and follows long-term industry growth rather than short-term market hype.
Citation: Chauhan, N. S., & Rajani. (2021). Risk – Return Analysis of Selected Sectors in India. Journal of Emerging Technologies and Innovative Research (JETIR), 8(7), 54-61.
A recent study by Smart-Investing (2026) on Mahindra & Mahindra highlights a negative beta of -0.132, which suggests that the stock has an inverse correlation with market movements. This negative value indicates that the company acts as a “defensive” asset, meaning it is less volatile and can stay steady or even rise when the broader market is falling.
Citation: Smart-Investing Analysis. (2026). Mahindra & Mahindra: Stock Beta and Market Risk Profile. Financial Market Reports, March 2026.
Data Collection: The Nifty 50 and your company were downloaded from nseindia.com for the period 1-1-2025 to 31-12-25. Friday closing prices for the Nifty 50 and your company were segregated. Weekly returns of the Nifty 50 and your company were calculated, with the weekly Nifty taken as x and the weekly return of your company taken as y. Y was taken and regressed on x.
Data Analysis: The equation r-squared is -0.13249
Conclusion: If beta is negative, then ignore it.
References
Chauhan, N. S., & Rajani. (2021). Risk – Return Analysis of Selected Sectors in India. Journal of Emerging Technologies and Innovative Research (JETIR), 8(7), 54-61. Link to Paper
Smart-Investing.in. (2026, March). Mahindra & Mahindra: Stock Beta and Market Risk Profile. Financial Market Reports. Retrieved from https://www.smart-investing.in
National Stock Exchange of India (NSE). (2025). Historical Stock Price Data: Mahindra & Mahindra Ltd. and NIFTY 50 (Jan 2025 – Dec 2025). Retrieved from https://www.nseindia.com