Mehabe score: 4 G Factor: 3 Piotski Score: 7 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 7.
Description
Mahindra CIE Automotive is engaged in the Business of Production and sale of automotive componts to orginal equipment manufacturing and other customers in india and overseas. Site:MAHINDCIE Main Symbol:MAHINDCIE
Stock trades at 172.0, below its 50dma 193.11 and below its 200dma 213.07. The stock remains bearish on technicals
The 52 week high is at 312.00 and the 52week low is at 148.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of 9.53% over past five years.
– has a low return on equity of 5.97% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 8.04% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 18.2x. PTC Industries trades at the industry’s max P/E of 299.8x. MAHINDCIE trades at a P/E of 16.3x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 7.0. MAHINDCIE has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 3.9%. The max 1- month return was given by PTC Industries: a return of 27.22 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 2064.0 cr compared to Rs 1958.0 cr for period ended Dec 2020, a rise of 5.4% .
vis-vis 247.0 for period ended Dec 2020 .
Operating Margins contracted -282.8 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 202.0 cr for period ended Dec 2021 and operating profit margin at 9.8 % for same period.
The EPS for quarter ended Dec 2021 is Rs 2.12 compared to Rs 4.39 for previous quarter ended Sep 2021 and Rs 2.95 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 8387.0 cr for period ended Dec 2021 vis-vis sales of Rs 6050.0 cr for the period ended Dec 2020, a healthy growth of 27.9%. The 3 year sales cagr stood at 1.5%.
Operating margins expanded to 12.0% for period ended Dec 2021 vis-vis 8.0% for period ended Dec 2020, expansion of 400.0 bps.
Net Profit reported at Rs 393.0 cr for period ended Dec 2021 vis-vis sales of Rs 106.0 cr for the period ended Dec 2020, rising 73.0%.
Company reported a poor Net Profit CAGR of -7.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1051.0 cr for period ended Dec 2021 vis-vis Rs 539.0 cr for period ended Dec 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 7% on a 1 Year basis vis-vis a return of -10% over the last 3 Years. – The compounded sales growth on a TTM bassis is 39% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 316% vis-vis a compounded profit growth of -7% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 10.36% vis-vis 10.45% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 9.68% vis-vis 9.52% for Sep 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – The company has delivered a poor sales growth of 9.53% over past five years.
– has a low return on equity of 5.97% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 8.04% of profits over last 3 years
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 193.11 and is trading at 172.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
