Motilal Oswal's research report on Mahindra CIE
MACA’s weak performance in 4QCY21 was reflection of high RM/energy cost and operating deleverage in both geographies. It is negotiating with customers to pass on hyper inflation in energy prices. There is good progress on order wins in EVs/hybrids in both geos.
We cut our CY22E EPS estimates by 3.5% to account for margin pressures across both geographies and maintain CY23E EPS estimates. Maintain Buy with TP of INR267 (13X Dec-23 EPS).