Mahindra CIE Automotive - Strong India Operations Outweighing Weak Europe: ICICI Securities

Company is targeting to take India revenue mix to ~60% versus 50%, driven by fast-growing profitable opportunities visible.

<div class="paragraphs"><p>A workers holds an automobile part at a plant. (Source: freepik)</p></div>
A workers holds an automobile part at a plant. (Source: freepik)

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ICICI Securities Report

We recently interacted with Mahindra CIE Automotive Ltd.'s management and following are the key takeaways:

  1. company is targeting to take India revenue mix to ~60% versus 50% currently, driven by fast-growing profitable opportunities visible;

  2. Mahindra and Mahindra Ltd.'s India revenue mix is now at 35%, with newly-launched SUVs pushing up per unit value-addition;

  3. strong demand from passenger vehicle makers (e.g. Tata Motors Ltd., M&M, Hyundai and Kia) has led to Mahindra CIE adding capacity across stamping, magnetics and warm forging operations;

  4. ~20%/~25% of India/Europe businesses are under electric vehicle disruption risk and management is well prepared to scale up the EV parts business to combat the risks;

  5. passenger vehicle demand in the Europe is yet to see major impact amid the current macro-issues though CV demand would get impacted.

Click on the attachment to read the full report:

ICICI Securities Mahindra CIE Update.pdf


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