Buy Mahindra CIE Automotive, target price Rs 253: ICICI Securities

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Buy Mahindra CIE Automotive, target price Rs 253:  ICICI Securities


has buy call on with a target price of Rs 253. The current market price of Mahindra CIE Automotive Ltd. is Rs 186.65.

Mahindra CIE Automotive Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 7102.66 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1965.08 Crore, up 13.18 % from last quarter Total Income of Rs 1736.31 Crore and up 13.64 % from last year same quarter Total Income of Rs 1729.25 Crore. Company reported net profit after tax of Rs 111.67 Crore in latest quarter.

Investment Rationale
The brokerage believes MACA is a well-diversified MNC with India revenue/PBT share reaching ~51%/63% in H2CY20. It raises estimates (by ~6%/4% for CY21E/CY22E respectively) factoring-in the better margin trajectory in domestic business. It raises target multiple in view of the rise in contribution of India profitability to 15x (earlier: 13x) CY22E EPS of Rs17.1.


Promoter/FII Holdings
Promoters held 71.6 per cent stake in the company as of Dec 30, 2020, while FIIs held 15 per cent, DIIs 3.3 per cent and public and others 10.1 per cent.





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