Mahindra CIE Automotive - On Course Toward Better RoCE: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Mahindra CIE Automotive Ltd. board recently expressed intent to sell off the company’s less profitable EU truck forging arm and focus on EU light vehicle electric vehicle components going ahead. We believe the EU truck forging arm was accounting for ~20% of consolidated revenue and ~6% of Ebitda, consuming ~20% of capital employed but hardly adding anything to profit before tax. Thus selling off the entity at ~25-30% enterprise value/sales would fetch ~Rs 5 billion/6 billion for Mahindra CIE and in turn reduce annual capex outflow. We believe this would help the company invest ~€100 million in building its EV component portfolio through organic/inorganic routes and increase its profitably in the EU. Also, with Mahindra and Mahindra Ltd. stake in Mahindra CIE reducing to less than 10% (~9% currently), Mahindra CIE board has approved renaming the entity to CIE Automotive India. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mahindra CIE Automotive - On Course Toward Better RoCE: ICICI Securities

The company's board recently expressed intent to sell off the company’s less profitable EU truck forging arm.

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