Buy Mahindra CIE; target of Rs 550: Motilal Oswal

Buy

Motilal Oswal's research report on Mahindra CIE

India focuses on profitable growth; EU focuses on profitability/EV transition Mahindra CIE (MACA) in its CY22 annual report highlighted a) its focus on profitable growth in India, b) re-engineering in EU for driving profitability and EV transition, c) limiting its focus on PVs in EU by divesting the CV forging business, and d) its strategy for the EV transition in India and EU. Its recent investments in capacity addition in India would support growth over the next two years. We present below the key insights from MACA’s annual report.

Outlook

The stock trades at 18.3x/15.7x CY23E/CY24E consolidated EPS. We maintain our BUY rating with a TP of INR550 (~18x Jun'25E consol EPS).

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Mahindra CIE - 24 -05 - 2023 - moti