Buy Mahindra CIE; target of Rs 500: ICICI Direct

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26 Aug, 2025 12:21

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Mahindra CIE (MCI), part of the Spain-based CIE Automotive Group, is a multi-technology, multi-product automotive component supplier. CY22 consolidated revenue mix – Europe 36%, India 64%. Forging is ~59% of consolidated sales (78% in Europe). In India it derives 49%, 23%, 20%, 8% of sales from PV, 2-W, tractors, M&HCV, respectively. In Europe it now derives 75% of sales from PV space.

We retain BUY, tracking healthy demand outlook, value accretion post selling of its German forging operations; improved financials; order wins in EV space, strong CFO yields (~7%) & healthy double digit return ratios. Rolling over our valuations & switching to PE valuation methodology, we now value MCI at ₹500 i.e., 20x PE on CY24E EPS of Rs25/share

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