Get App


Associate Partners

Last Updated : May 08, 2019 01:14 PM IST | Source:

Buy Mahindra CIE Automotive; target of Rs 275: ICICI Direct

ICICI Direct is bullish on Mahindra CIE Automotive has recommended buy rating on the stock with a target price of Rs 275 in its research report dated May 08, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Mahindra CIE Automotive

Mahindra CIE Automotive (MCI), reported steady performance in Q1CY19. Consolidated sales stood at Rs 2,068.4 crore, up 10% YoY (MCI Europe Rs 1,284.4 crore, up 14.8% YoY; MCI India Rs 793.6 crore, up 2.3% YoY). Consolidated reported EBITDA margins at 13.0% came off from the 14%+ trajectory seen in CY18, dragged by Europe operations margins at 13.1%. Standalone revenues for Q1CY19 rose by 5.0% YoY to Rs 642.6 crore with margins stood at 12.2%, up 95 bps QoQ on account of operating leverage benefit. Consequent standalone PAT stood at Rs 46.9 crore, up 21.7% YoY.


The company’s healthy return ratios (~15% RoCE) and >10% CFO yield also provide valuation comfort. We value MCI at Rs 275 i.e. 8x EV/EBITDA on CY20E numbers and retain our BUY rating on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.
First Published on May 8, 2019 01:14 pm
More From
Follow us on
Available On
PCI DSS Compliant