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Buy Mahindra CIE; target of Rs 315: Motilal Oswal

Motilal Oswal is bullish on Mahindra CIE recommended buy rating on the stock with a target price of Rs 315 in its research report dated July 24, 2022.

July 27, 2022 / 11:20 AM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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Motilal Oswal's research report on Mahindra CIE


MACA’s 2QCY22 operating performance was in line as strong revenue traction was offset by cost pressures. While 2HCY22 is likely to be better than 1H for the European business, India business is expected to gain from demand recovery in 2Ws (on a low base) and demand from M&M’s SUV.  We raise our CY22E/CY23E EPS by 17%/5%, respectively, to account for: a) stronger-than-estimated revenue growth and b) higher other income, lower interest and lower tax for CY22E. Maintain BUY with a TP of INR315 (premised on 13x Jun’24E consolidated EPS).


Outlook


Any significant order wins, or growth in the EV portfolio, can act as a re-rating factor. The stock trades at 13x/11.1x CY22E/CY23E consolidated EPS. Maintain BUY with a TP of INR315 (premised on 13x Jun’24E consolidated EPS).


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At 11:19 hrs Mahindra CIE Automotive was quoting at Rs 258.50, up Rs 1.20, or 0.47 percent.

It has touched an intraday high of Rs 264.55 and an intraday low of Rs 257.25.

It was trading with volumes of 25,364 shares, compared to its thirty day average of 79,033 shares, a decrease of -67.91 percent.

In the previous trading session, the share closed up 0.06 percent or Rs 0.15 at Rs 257.30.

The share touched its 52-week high Rs 311.65 and 52-week low Rs 164.00 on 16 November, 2021 and 23 March, 2022, respectively.

Currently, it is trading 17.05 percent below its 52-week high and 57.62 percent above its 52-week low.

Market capitalisation stands at Rs 9,800.61 crore.

For all recommendations report, click here


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Mahindra CIE - 250722 -moti

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first published: Jul 26, 2022 04:04 pm
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