Mahindra CIE - Structural Drivers In Place For Meaningful Gains: ICICI Direct

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 Direct Report.As per regulatory filing, Mahindra CIE Automotive Ltd. has put its forging business in Germany (wholly owned subsidiary) on the block for sale with its holding company being empanelled to scout for buyers in this domain. In a separate filing, the company also informed about its intention to change its name from Mahindra CIE Automotive to CIE Automotive India Ltd.Mahindra CIE’s German forging business (Mahindra Forgings Europe AG) constituted 10% plus of its consolidated sales as of CY21 and is loss making at the profit after tax level. It largely manufactured forging components for truck segment in Europe. Mahindra CIE, in one of the earlier interactions, had indicated at challenges at its German operations due to geopolitical conflict and higher energy prices but informed about no cash burn in this domain.Selling this part of the business bodes well for Mahindra CIE’s consolidated margin profile and capital efficiency matrix. The company’s Indian business clocks steady state margins of ~15% versus ~10-12% clocked at its European operations.CIE group has also steadily increased stake in Mahindra CIE by ~5% in the past 12 months, reinforcing foreign promoter’s commitment to this business..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 - Structural Drivers In Place For Meaningful Gains: ICICI Direct

As per regulatory filing, the company has put its forging business in Germany (wholly owned subsidiary) on the block for sale.

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