Mahindra CIE - Focus On Profitability, Capital Allocation: Motilal Oswal

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. .Motilal Oswal Report.We met the management of Mahindra CIE Automotive Ltd. to learn more about-its decision to sell German commercial vehicle forging operations and its implications on operational/financials, the company’s key focus areas in terms of geography and product, factors leading to margin expansion in the near to medium term, andfocus areas in electric vehicles and details of order wins. We believe the proposed sale of its German CV forging operations is a positive development for Mahindra CIE as it will result in a better financial performance (profitability improvement and debt reduction) and free up managements bandwidth. Moreover, management’s focus on profitability has intensified further, as it has become selective in terms of order acceptance (to only consider orders with return on investment more than 20%) and investments in high value-added products. We believe Mahindra CIE’s growth story is on track, led by its organic initiatives (new products/customers) and merger and acquisition focus (adding new technologies). Under CIE’s parentage, the company has been able to improve its efficiencies, cut costs, and improve profitability..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 - Focus On Profitability, Capital Allocation: Motilal Oswal

We believe Mahindra CIE’s growth story is on track, led by its organic initiatives.

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