CIE Automotive India Ltd. share price target

Mahindra CIE (MCIE) is among the top global forging players with a strong presence in both Europe and India. Currently 2/3 rd of the revenue comes from Europe (split btw CV's & PV's) while rest from India (PVs). MCIE registered a robust revenue growth of 29% for Q3CY18, driven by strong European sales of 32%YoY & India business growing at 26%YoY. Despite weak European car sales, the growth was largely led by new orders in Gears & forging and robust growth in EU truck sales. Consolidated EBITDA margin improved by 130bps led by superior...

Mahindra CIE's (MCI) consolidated revenues grew ~22% YoY to | 1933 crore supported by new order wins, organic volume growth across businesses, higher realisation & positive exchange rate. EBITDA margins expanded 29 bps YoY to 13.5% driven by Indian operations Revenues from India [standalone + Bill Forge (BFL) + gears business] were at | 815 crore, up ~20% YoY (of which ~9% is constituted by its top three customers, ~4% from higher realisation & ~7% from new clients). EBITDA margins expanded 78 bps YoY to 15.2% due to cost...

Impressive volume growth in International Business: MHCIE's India sales (~ 40% of consolidated sales) increased by 26.2% yoy to Rs8bn mainly on account of strong demand from domestic PV, Tractor and 2W industry.

ICICI Securities Ltd | Retail Equity Research Mahindra CIE's consolidated revenues grew 29.4% YoY to | 1973 crore vs. estimate of | 1773 crore. Its operating margin expanded 125 bps YoY to 14.7% post margin expansion in India & European operations Revenues from India [standalone + Bill Forge (BFL) + gears business] grew 26% YoY to | 802 crore. The growth mix is at - 15% from its existing customers, 6% from higher realisation (passed on higher steel prices) and 5% from business of new clients. EBITDA margin expanded...

Mahindra CIE (MCIE) is among the top global forging players with a strong presence in both Europe and India. Currently 2/3 of the revenue comes from Europe (split btw CV's & PV's) while rest from India (PVs). MCIE registered a robust revenue growth of 29% for Q2CY18, driven by strong European sales of 32%YoY & India business growing at 26%YoY. Consolidated EBITDA margin improved by 120bps at 14.7% led by superior geographical mix and cost control initiatives. Strong order book from European subsidiary and new launches from...

Mahindra CIE (MCIE) is among the top global forging players with a strong presence in both Europe and India. Currently 2/3 of the revenue comes from Europe (split btw CV's & PV's) while rest from India (PVs). Q1CY18 registered a revenue (Consolidated) growth of 25.6%YoY led by 24% growth from India and 26% from Europe business. Consolidated EBITDA margin improved by 100bps led by superior geographical mix and cost control initiatives. Strong order book from European subsidiary and new launches from...

CIE Automotive based in Spain and parent Company of Mahindra CIE (MHCIE) has revised its sales and profit guidance upwards for CY20 post its Q1CY18 results. We believe, Mahindra CIE which contributes ~ 23% to CIE's sales is likely to be a part of this upward revision in guidance.

ICICI Securities Ltd | Retail Equity Research Mahindra CIE's Q1CY18 consolidated revenues came in at | 1911 crore (up 25.6% YoY) vs. our estimate of | 1800 crore. The EBITDA margin came in at 13.8%, up 101 bps YoY vs. our estimate of 13.6% Revenues from India [standalone + Bill Forge (BFL) + gears business] grew 24.4% YoY to | 775.6 crore. This is after significant sales growth was witnessed across its division and supported by its top three clients (that account for >50% of its revenue). The EBITDA margin expanded...

Consol. revenue grew 27% YoY to INR20b (est. of INR16.6b), driven by strong volume growth in India/Europe and INR depreciation. EBITDA increased ~37% YoY to INR2.6b (est. of INR2.3b), with the margin of 13% missing our estimate of 13.7% due to absorption of higher RM costs in the EU (to be passed on subsequently). PBT grew ~62% YoY to INR1.9b (est. of INR1.4b). India business revenue grew ~26% YoY (17% QoQ) to INR8.3b, driven by strong growth in the BFL, castings, forgings and gears divisions. EBITDA increased ~50% YoY (+41% QoQ) to INR1.1b, with the margin expanding 220bp YoY (+240bp QoQ) to 13.9%, led by a favourable mix and operating leverage. PBT grew 88% YoY (+138% QoQ) to INR967m, also benefiting from ~INR107m of FX gain at BFL Mexico.

MHCIE's India sales (~ 40% of consolidated sales) increased by 19.5% yoy to Rs7.7bn mainly on account of strong demand from domestic PV, Tractor and 2W industry. Its key domestic customers (M&M, Maruti and Tata Motors) grew by 11.7%. MHCIE's Europe sales (~ 60% of consolidated sales) increased by 22.8% yoy to Rs11.4 bn mainly on the back of impressive 11.2% volume growth supported by buoyancy in European market.