CIE Automotive India Ltd. share price target

Mahindra CIE Automotive (MCI) reported a subdued Q2CY19 performance. Consolidated sales were at | 2,142 crore, dragged by ~12% decline in Indian sales (like-to-like) and flattish Europe business performance. MCI consolidated Aurangabad Electricals (AEL) while reporting Q2CY19 numbers. Consolidated EBITDA was at | 269.4 crore, with attendant EBITDA margins at 12.2%, down 80 bps QoQ. Standalone revenues for Q2CY19 came off spectacularly, dropping 16.8% YoY to | 541 crore with margins at...

During Q1CY19, MCIE's consolidated revenue and PBT grew by 10% & 12%YoY respectively, in line with our estimates. The growth was driven by 15%YoY & 2%YoY from European and India business. Despite weak European car sales, the new orders in Gears & Forging segments supported the revenue. However weak domestic demand lowered the India share business. EBITDA margin improved by 50bps due to exchange benefit and superior product mix from Mexico Plant....

During Q1CY19 MHCIE reported mixed bag numbers. Going forward Management expects its Indian operations to remain steady during H1CY19 and international operations to be robust. During H2CY19 exact reverse is likely to happen with robust domestic operations and steady international operations.

Historically MCI has out-performed volume growth at its key OEM clients in India and Europe, tracking increase in its content per vehicle. This continued in Q1CY19 as MCI India posted ~2% QoQ revenue increase despite ~2% blended drop in volumes at domestic OEMs like M&M;, Maruti, Tata Motors and Hero Motocorp (>50% of business). India operations would also have been aided by fresh launches such as New Wagon-R, Marazzo, Alturas G4, Harrier and Destini 125. In parallel, MCI Europe reported top line growth of 15% (including 1% exchange gain) vs. PV segment de-growing by 5.2% in...

Mahindra CIE 7 May 2019 1QCY19 consol. net sales grew ~9% YoY to ~INR21.7b. EBITDA margins were stable at 13% (flat QoQ/YoY) and EBITDA grew 9% YoY to ~INR2.8b. PAT at ~INR1.53b, a growth of ~16% YoY. revenue grew ~3% YoY (+4% QoQ) to INR8.4b, despite ~9% YoY production decline for key customers. PBIT margin grew 100bp YoY to 11.6% due to higher other income (adj. for which there is 40bp YoY decline). revenue grew ~15% YoY to INR13.3b (constant currency growth of 14%), driven by strong growth at Metalcastello and Lithuania business.

ICICI Securities Ltd | Retail Equity Research Mahindra CIE (MCI) today in its board meeting approved the acquisition of Aurangabad Electricals (AEL). AEL is a leading domestic player (established since 1985) involved in manufacturing aluminium die-casting products (body, brake, engine parts) for the auto space with major exposure to the 2W segment (share of sales: 79%) with Bajaj Auto being its key client (share of sales: 77%). MCI will buy-out the entire equity shareholding of AEL by paying | 830 crore in cash from its own balance sheet. It includes a deferred payment of up to | 62 crore. AEL has a long term borrowing of | 88 crore...

Mahindra CIE (MCIE) is among the top global forging players with a strong presence in both Europe and India. Currently 2/3rdof the revenue comes from Europe while the rest is from India. MCIE registered a robust revenue growth of 17.5% in Q4CY18, driven by 15%YoY growth from India and 19%YoY from European business. PBT grew by 30%YoY due to lower depreciation. Despite weak European car sales, the growth was largely led by new orders in Gears & Forging and growth in EU truck sales....

Mahindra CIE (MCI) reported a robust Q4CY18 performance led by healthy 220 bps QoQ margin improvement in European operations On a consolidated basis, MCI reported sales of | 1873.3 crore, up 15.8% YoY. It included MCI India sales of | 762.7 crore, up 14.5% YoY & MCI Europe sales of | 1119.9 crore, up 16.8% YoY EBITDA margins at the consolidated level were at 14.7% (up 116 bps QoQ) with MCI India reporting EBITDA margins of 14.9% (down 34 bps QoQ) while the same at MCI Europe was at 14.4% (up 225 bps QoQ)...

Strong Results Maintain BUY: During Q4CY18 MHCIE reported impressive numbers which were ahead of ourestimates on all accounts. Going forward Management expects MHCIE to grow faster than overall auto market in domestic and international segment.

Business Momentum to sustain Maintain BUY: MHCIE reported stellar Q3CY18 numbers. Following are the key highlights of its consolidated financials