Geojit's research report on Mahindra CIE Automotive
Mahindra CIE (MCIE) is one of the top global forging players with a strong presence in both Europe and India. Currently 2/3rd of the revenue comes from Europe, while the rest is from India. We believe despite demand push back for short term, MCIE’s key customer’s are outperforming the industry growth. As a result, the current order remain strong for the company. Increased business with existing customers owing to supplier consolidation and shifting the production to India, as primary hub for export is adding value for the company. Q1CY22 revenue came at 18.2%YoY due to growth coming from both India and Europe business by 15% and 20% respectively. EBITDA margin came at 11.5%YoY (-170bps QoQ) with gross margin largely flat, despite input cost pressure.
Outlook
We firmly believe that the strong cost control initiatives and positive order book will help MCIE to tide over the crisis. We value MCIE at 12x CY23E EPS and maintain our rating as Buy.
More Info
At 14:05 hrs Mahindra CIE Automotive was quoting at Rs 194.75, up Rs 4.95, or 2.61 percent.
It has touched an intraday high of Rs 196.35 and an intraday low of Rs 187.55.
It was trading with volumes of 12,584 shares, compared to its thirty day average of 528,593 shares, a decrease of -97.62 percent.
In the previous trading session, the share closed down 4.60 percent or Rs 9.15 at Rs 189.80.
The share touched its 52-week high Rs 311.65 and 52-week low Rs 164.00 on 16 November, 2021 and 23 March, 2022, respectively.
Currently, it is trading 37.51 percent below its 52-week high and 18.75 percent above its 52-week low.
Market capitalisation stands at Rs 7,383.41 crore.
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