Motilal Oswal's research report on Mahindra CIE
Mahindra CIE (MACA)’s 1QCY23 result was better than expected as its consol. EBITDA margin expanded 260bp QoQ to 15.6% (est. 14.1%). This was driven by strong EBITDA margin beat in the EU due to lower energy prices coupled with operating leverage and better efficiency. While margin for India business too was better at 15.0% (est. 14.5%), there is further scope of margin expansion in India.
Outlook
We raise our CY23E/CY24E EPS by 3%/1% to reflect better margins in both businesses, lower EU revenue in CY24E and higher interest cost. Reiterate BUY with a TP of INR450 (premised on ~16x Mar’25E consol. EPS).
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