Buy Mahindra CIE; target of Rs 330: ICICI Direct
ICICI Direct is bullish on Mahindra CIE has recommended buy rating on the stock with a target price of Rs 330 in its research report dated October 17, 2021.
October 18, 2021 / 03:42 PM IST
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
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)
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