8 MAHINDCIE share price target reports by brokerages below. See what is analyst's view on MAHINDCIE share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
MHCIE is a second largest forging company in India. It is diversified auto ancillary MNC which is on its way to become one of the largest Auto ancillary entity in India. The company is expected to generate ~Rs16bn operating cash over CY18-20E. We believe, the Company has completed its consolidation phase and likely to enter into a growth phase through organic and inorganic route. At CMP of Rs153, MHCIE stock, is quoting at attractive valuations of PE of 10.9x, EV/EBITDA of 5.8x and P/B of 1.1x based on CY20 estimates. The stock is quoting at almost 50% discount to sectoral valuations which we believe is unjustified. We maintain our BUY rating on the stock with revised target price of Rs210 (PE of 15xCY20E earnings).
In spite of muted growth expectation of 8.7% sales CAGR and 6% PAT CAGR over CY18-20, the MHCIE stock, based on CY20 estimates is quoting at attractive valuations of PE of 9.7x, EV/EBITDA of 5.0x and P/B of 1x. The stock is quoting at almost 50% discount to sectoral valuations (Refer page No.5) which we believe is unjustified. The Company is expected to generate Rs19bn operating cash over CY18-20E. We believe, the Company has completed its consolidation phase and likely to enter into growth phase through organic and inorganic route. Given the stable business growth outlook, improvement in balance sheet and decent return ratios, we believe stock is due for rerating. We maintain our "BUY" rating on the stock with a price target of Rs. 244 (PE of 15xCY20E earnings).
On the back of new launches from its key domestic customers and strong demand in the CV segment due to pre buying owing to change in emission norm, will generate demands for its products. However the near term headwind due to slower PV growth both in Europe and domestic to remain under check for short term. We value MCEI at 13xCY20E EPS and derive at a target price of Rs247 and upgrade our rating to Accumulate from Hold at CMP.
MHCIE, a second largest forging company in India and diversified auto ancillary MNC is on its way to become one of the largest Auto ancillary entity in India. Post its alliance with CIE, the Company has consolidated its business by improving its plant operations and strengthening its balance sheet. Given the stable business growth outlook and ~10.8% earnings CAGR over CY18-20E, we believe stock is due for rerating. We maintain our BUY rating on the stock with revised target price of Rs304 (PE of 17xCY20E earnings).
Cyclical slowdown notwithstanding, MACA’s growth story is on track, driven by organic initiatives (new products/ customers) and M&As in focus area. More importantly, under CIE’s parentage, MACA has substantially improved its efficiencies, cut costs and improved profitability. This is reflected in its continuous strong performance, despite industry weakness (both in India and EU). The stock trades at an attractive valuation of 12.9x/11.5x CY19/20E consol. EPS. We value MACA at 15x CY20E EPS, at 30% discount to BHFC’s target multiple due to a difference in competitive positioning and capital efficiencies. Maintain Buy with a target price of INR290.
MHCIE is one of the largest diversified auto ancillary MNC in India. Post its alliance with CIE, the Company has consolidated its Indian and European business by improving its plant operations and strengthening its balance sheet. We believe, the Company has completed its consolidation phase and likely to enter into high growth phase with through organic and inorganic route. Based on current business outlook and the Company’s expansion plans we expect MHCIE to report 7.5% sales CAGR and 12.6% earning CAGR over CY18-20. The stock is attractively priced at PE of 13.7xCY19E and 12.1xCY20 earnings. We maintain our BUY rating on the stock with revised price target of Rs312 (PER of 17xCY20E earnings – in line with its three year 12M forward average PE).
AEL acquisition strategically placed, margins at AEL to inch up, retain BUY! We are of the view that the said acquisition is progressive in nature as it de- risks, to an extent, the prevailing business model of MCI in favour of the upcoming trend of increasing usage of aluminium in automobile manufacturing. The acquisition will also broaden MCI’s customer base with now healthy exposure to the 2-W segment domestically. CIE with its financial prowess and global experience has successfully turned around operations at various entities at MCI in the past, with consolidated margins improving from ~8% in FY15 to 13.1% in CY18. We expect AEL to benefit from the CIE group expertise in scaling up its margins from prevailing levels of ~12% to ~15% over the next few years. However, we await the merger getting consummated and do not incorporate AEL numbers in our forward earnings estimates as well as valuations parameters. We continue to like the stock given its outperformance in both the domestic as well as international markets, talks over new client additions (KIA Motors) and focus on healthy balance sheet (return ratios, leverage) and cash flow generation. We also draw comfort from ~15% RoCE & >5% FCF yield at MCI over CY19-20E.
MCI has successfully turned around its operations with margins in CY18 at 13.1% vs. 8% in FY15. It has also grown in excess of industry growth rates through increasing its wallet share at its key clients. We expect this outperformance to continue, going forward. We expect sales, PAT to grow at a CAGR of 8.6% & 14.7%, respectively, in CY18-20E. We value MCI at | 275 i.e. 8.5x EV/EBITDA on CY19E numbers. We have a BUY rating on the stock. We also draw comfort from ~15% RoCE & >5% FCF yield at MCI.
During Q4CY18 MHCIE reported impressive numbers which were ahead of our estimates on all accounts. Going forward Management expects MHCIE to grow faster than overall auto market in domestic and international segment. We have revised our Sales and PAT estimates upwards by 1.3%/3.4% for CY19E respectively on account of better than expected performance from MHCIE India operations supported by its European business. We also introduce our CY20 estimates for MHCIE. Over CY18-20E, we expect, MHCIE to report 7.5% sales CAGR and 12.5% PAT CAGR. The Company is expected to report EPS of Rs16 and Rs18.3 in CY19E and CY20E respectively. We maintain our BUY rating on the stock and upgrade the target price to Rs321 valuing the Company at PE of 20xCY19E earnings (In line with its 3year 12M average forward PE multiple and ~20% discount to BFL).
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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