CIE Automotive India Ltd. share price target

New order wins in EVs/hybrids; Focus on energy cost pass on to customers MACA's weak performance in 4QCY21 was reflection of high RM/energy cost and operating deleverage in both geographies. It is negotiating with customers to pass on hyper inflation in energy prices. There is good progress on order wins in EVs/hybrids in both geos. We cut our CY22E EPS estimates by 3.5% to account for margin pressures across both geographies and maintain CY23E EPS estimates. Maintain Buy with TP of INR267 (13X Dec-23 EPS)....

The focus is on winning new orders in the EV space MACA's strong performance in 3QCY21 was driven by strong revenue trajectory in its India operations, while its EU operations were affected by chip shortages and an adverse exchange rate. New order for EVs provides...

Mahindra CIE (MCIE) is one of the top global forging players with a strong presence in both Europe and India. Currently 2/3 rd of the revenue comes from Europe, while the rest is from India. Q2CY21 revenue came lower at -6.2%QoQ due to 2nd covid wave impact in India. Europe business maintained Q1 positive trend. EBITDA margin came at 12.7% (-40bpsQoQ) due to supply chain concerns and lower productivity due to partial lock down in India. Increased business with existing customers owing to supplier...