Geojit recommended recommended hold rating on Mahindra CIE Automotive with a target price of Rs 281 in its research report dated October 22, 2018.
Geojit's research report on Mahindra CIE Automotive
Mahindra CIE (MCIE) is among the top global forging players with a strong presence in both Europe and India. Currently 2/3rd of the revenue comes from Europe (split btw CV’s & PV’s) while rest from India (PVs). MCIE registered a robust revenue growth of 29% for Q3CY18, driven by strong European sales of 32%YoY & India business growing at 26%YoY. Despite weak European car sales, the growth was largely led by new orders in Gears & forging and robust growth in EU truck sales.
Considering the faster EV adoption in Europe and ongoing trade war we maintain our P/E valuation at 18x with a target price of Rs281 and downgrade our rating as Hold from buy at CMP.
For all recommendations report, click here
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