Fundamental Analysis

MAHINDRA CIE AUTOMOTIVE LIMITED

Ticker : 532756
BUY: Rs 279.50
Target: Rs 315

Mahindra CIE is a multi-technology automotive components supplier, which is a subsidiary of CIE Automotive Group of Spain; an industrial group specialised in supplying components and subassemblies for the automotive market. The consolidated quarterly financials state that the company recorded a 41.53 per cent increase in the net sales and operating income, which stood at Rs 2,090.69 crore for Q3CY21 as compared to the net sales & operating income of Rs 1,694.30 crore reported for Q3CY20. The quarter recorded an operating profit of Rs 275.91 crore in Q3CY21 as compared to the operating profit of Rs 192.86 crore posted in Q3CY20. It reported a net profit of Rs 166.32 crore in Q3CY21, robustly zooming from Rs 60.76 crore recorded in Q3CY20. The company's growth potential is driven by its new products and customers. This, along with cost-cutting initiatives in both India and the EU, would drive margin expansion. Hence, we recommend BUY.