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

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.

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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.


Outlook


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


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First Published on May 8, 2019 01:14 pm
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