Mahindra CIE Automotive share price: Buy Mahindra CIE, target price Rs 200: ICICI Securities

ICICI Securities has given a buy rating to Mahindra CIE with a target price of Rs 200. The share price moved up by 0.92 per cent from its previous close of Rs 135.45. The stock’s last traded price is Rs 136.70.

Mahindra CIE Automotive Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 5177.29 Crore) operating in Auto Ancillaries sector.

For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1694.30 Crore, up 130.37 % from last quarter Sales of Rs 735.47 Crore and down -9.32 % from last year same quarter Sales of Rs 1868.50 Crore. Company reported net profit after tax of Rs 60.72 Crore in latest quarter.

Investment Rationale
The brokerage believes MACA is a well-diversified MNC supplier with products and technologies across end-segments. It raises estimates (up ~15% in CY21) factoring-in higher margin resilience from MACA, roll forward in CY22 as it introduces CY22E estimates. It has pruned target multiple factoring in mid-cycle growth to 13.0x (earlier: 16.0x) Sep’22E EPS of Rs15.4. It maintains BUY rating on the stock with a revised target price of Rs200/share (earlier: Rs151).

Promoter/FII Holdings
Promoters held 71.6 per cent stake in the company as of Sept 30, 2020 while FIIs held 14.5 per cent, DIIs 3.3 per cent and public and others 10.6 per cent.

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