Buy Mahindra CIE Automotive, target Rs 280: Geojit

Geojit has a buy call on Mahindra CIE Automotive Ltd. with a target price of Rs 280. The current market price of Mahindra CIE Automotive Ltd. is Rs 248.8 Time period given by analyst is year when Mahindra CIE Automotive Ltd. price can reach defined target. .
Mahindra CIE Automotive Ltd., incorporated in the year 1999, is a midcap company with a market cap of Rs 9376.59 crore operating in Engineering sector.

Investment rationale by Geojit: On the back of storng domestic outlook and new launches from the key customer will generate demands for its products. MCIE international buiness paints a positive stance for the company. We expect valuation to improve ahead due to better earnings outlook of 25%CAGR over CY17-19E. At CMP MCIE is trading at a P/E of 19.1x and 16.3x for CY18E and CY19E EPS, looks reasonable. We value at a P/E of 19x on CY19E with a revised target price of Rs 280 and maintain our ‘Buy’ rating.