ICICI Direct has given Buy recommendation for Mahindra CIE with a target price of Rs. 330 in its research report issued on Oct 17, 2021

ICICI Direct’s research report on Mahindra CIE

Mahindra CIE (MCI), part of the Spain-based CIE Automotive Group, is a multi-technology, multi-product automotive component supplier. CY20 consolidated revenue mix – Europe 52%, India 48% Forging is ~63% of consolidated sales (89% in Europe). India mix is more diversified; includes 25% from aluminium, 18%- stampings & 11%- castings In India it derives 40%, 32%, 16%, 5% of sales from PV, 2-W, tractors, M&HCV, respectively In Europe it derives 48%, 42%, 10% of sales from PV, MHCV, off highway, respectively

Outlook

We retain BUY on expected margin improvement & inexpensive valuations We introduce CY23E numbers; value MCI at 10x average CY22E-CY23E EV/EBITDA for revised target of Rs 330 (earlier target: Rs 290)

 

Leave a Reply

Your email address will not be published. Required fields are marked *