Motilal Oswal is bullish on Mahindra CIE has recommended buy rating on the stock with a target price of Rs 298 in its research report dated April 20, 2018.
Broker Research
Motilal Oswal's research report on Mahindra CIE
Consol. revenue grew 27% YoY to INR20b (est. of INR16.6b), driven by strong volume growth in India/Europe and INR depreciation. EBITDA increased ~37% YoY to INR2.6b (est. of INR2.3b), with the margin of 13% missing our estimate of 13.7% due to absorption of higher RM costs in the EU (to be passed on subsequently). PBT grew ~62% YoY to INR1.9b (est. of INR1.4b).
Outlook
We upgrade CY18E/19E EPS by 12.5%/9.5% to factor in (a) higher EUR/GBP and (b) higher growth in S/A business. The stock trades at 17.2x/14.2x CY18/19E consol. EPS. Maintain Buy with a TP of INR298 (18x CY19E EPS).For all recommendations report, click here
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