CIE Automotive India Ltd. share price target

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

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...