Buy Mahindra CIE Automotive, target price Rs 380: Axis Securities

Axis Securities has buy call on Mahindra CIE Automotive with a target price of Rs 380. The current market price of Mahindra CIE Automotive is Rs 348.9.Time period given by analyst is 3-4 weeks when Mahindra CIE Automotive price can reach defined target. Axis Securities recommended to keep stoploss at Rs 318.

Mahindra CIE Automotive, incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 13226.80 Crore) operating in Auto Ancillaries sector.

Mahindra CIE Automotive key Products/Revenue Segments include Automotive Accessories, Other Operating Revenue and Sale of services for the year ending 31-Dec-2021.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2736.95 Crore, down -.22 % from last quarter Total Income of Rs 2742.86 Crore and up 30.45 % from last year same quarter Total Income of Rs 2098.09 Crore. Company has reported net profit after tax of Rs 171.07 Crore in latest quarter.

The company’s top management includes Mr.Shriprakash Shukla, Mrs.Roxana Meda Inoriza, Mr.Kadambi Narahari, Mr.Suhail A Nathani, Mr.Manoj Maheshwari, Mr.Dhananjay Mungale, Mr.Puneet Renjhen, Mr.Jesus Maria Herrera Barandiaran, Mr.Manoj Menon, Mr.Anil Haridass, Mr.Ander Arenaza Alvare, Mr.Alan Savio D�Silva Picardo. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 30-09-2022, the company has a total of 38 Crore shares outstanding.

Investment Rationale
On the weekly chart, the stock has decisively broken out above the “Cup and Handle pattern”. The breakout for the same was place at 328. Also, the stock had also broken out above the “Multiple resistance zone” placed between 328-313 levels.

Promoter/FII Holdings
Promoters held 74.96 per cent stake in the company as of 30-Sep-2022, while FIIs owned 6.85 per cent, DIIs 7.66 per cent.