Buy Mahindra CIE, target price Rs 223: Motilal Oswal

Buy Mahindra CIE, target price Rs 223:  Motilal Oswal

Motilal Oswal has buy call on Mahindra CIE with a target price of Rs 223. The current market price of Mahindra CIE Automotive Ltd. is Rs 181.5.

Mahindra CIE Automotive Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 6795.66 Crore) operating in Auto Ancillaries sector.

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 stock trades at attractive valuations of 15.8x/12.5x CY21E/CY22E consol. EPS. Maintain Buy, with TP of ~INR223 (15x Mar’23 consol. EPS).

Promoter/FII Holdings
Promoters held 71.6 per cent stake in the company as of Dec 30, 2020, while FIIs held 14.6 per cent, DIIs 3.7 per cent and public and others 10.1 per cent.

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