Motilal Oswal’s research report on Mahindra CIE
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 support against an expected loss of revenue growth in its ICE-dependent portfolio. We largely maintain our EPS estimates, despite good beat in 3QCY21, as we factor in the impact from semiconductor shortages. We maintain our Buy rating.
Any significant order win or growth in the EV portfolio can act as a re-rating factor. The stock trades at valuations of 16.9x/13.9x CY21E/CY22E consolidated EPS. We maintain our Buy rating with a TP of ~INR300/share (15x Sep’23E consolidated EPS).
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