Buy Mahindra CIE Automotive, target price Rs 295: Motilal Oswal

Motilal Oswal has buy call on Mahindra CIE Automotive with a target price of Rs 295. The current market price of Mahindra CIE Automotive Ltd. is Rs 240.1. Time period given by analyst is one year when Mahindra CIE Automotive Ltd. price can reach defined target.

Mahindra CIE Automotive Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 9250.27 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2054.04 Crore, down -7.00 % from last quarter Total Income of Rs 2208.76 Crore and up 172.63 % from last year same quarter Total Income of Rs 753.42 Crore. Company reported net profit after tax of Rs 136.20 Crore in latest quarter.


Investment Rationale
The stock trades at valuations of 15.5x/13.7x CY21E/CY22E consolidated EPS. The brokerage maintains Buy rating with a TP of ~INR295 per share (15x Sep’23E consolidated EPS).

Promoter/FII Holdings
Promoters held 72.2 per cent stake in the company as of June 30, 2021, while FIIs held 12.7 per cent, DIIs 5.6 per cent and public and others 9.5 per cent.