Mahindra CIE Automotive Limited, a subsidiary of CIE Automotive S.A, Spain, with significant investment from Mahindra Vehicle Manufacturing Ltd., is a prominent player in the automotive components industry. Specializing in the production and distribution of automotive components to original equipment manufacturers (OEMs) and diverse clientele globally, the company holds a pivotal position in both Indian and international markets. The automotive industry, integral to global economic growth, continually evolves with technological advancements, changing consumer preferences, and regulatory dynamics. Mahindra CIE Automotive’s strategic positioning in this landscape underscores its resilience and adaptability, navigating through market fluctuations and industry challenges.
As Mahindra CIE Automotive charts its course amidst dynamic market forces, the discourse extends beyond financial projections, offering insights into its potential to realize ambitious price targets, reflecting the intricate interplay of industry dynamics and corporate prowess.
About CIE Automotive
Mahindra CIE Automotive Limited, a subsidiary of CIE Automotive S.A, Spain, enjoys significant backing from Mahindra Vehicle Manufacturing Ltd. The company specializes in producing and supplying automotive components to original equipment manufacturers (OEMs) worldwide. Operating as part of the CIE Automotive Group, Mahindra CIE Automotive boasts a diverse portfolio across various automotive segments, including forging, aluminum casting, gears, stamping, casting, and magnetic products. With a robust presence in India and overseas, Mahindra CIE Automotive operates 26 manufacturing facilities, strategically located in India, Europe, and Mexico. Notable clients include renowned global brands like Renault, VW, Ford, BMW, and domestic giants like Mahindra, Maruti, Tata, and Hero.
Recent restructuring initiatives and leadership changes, such as appointing Mr. Sunil Narke as CEO, reflect the company’s commitment to adaptability and growth. With a focus on expanding its electric vehicle (EV) portfolio and continuous investment in capex, Mahindra CIE Automotive remains poised to capitalize on emerging market trends and solidify its position as a leader in the automotive components industry.
Recent News Around CIE Automotive
- The stock of CIE Automotive is currently trading at 2.82 times its book value, indicating a potentially overvalued position in the market compared to its intrinsic value.
- The company has exhibited a low return on equity of 7.06% over the last 3 years, suggesting relatively modest profitability in relation to shareholder investments.
- The company’s earnings include an additional income of Rs. 410 crore, contributing to its overall financial performance.
- Over the past 3 years, there has been a decrease in promoter holding by -5.91%, implying a reduction in the ownership stake of the company’s promoters.
- CIE Automotive recently announced its plans for expansion and diversification in its product portfolio, aiming to capitalize on emerging market opportunities and enhance its competitive position.
CIE Automotive Q3 Fy2024 Key Points And Summary:
- Sales for October-December 2023 amounted to ₹13,934 million, indicating a 3.8% increase compared to the same period in 2022, yet witnessing a 3.2% decline from the preceding quarter, July-September 2023, where sales stood at ₹14,393 million.
- EBITDA for October-December 2023 totaled ₹2,299 million, reflecting a 7.5% decrease from the corresponding period in 2022, alongside a 4.5% decrease compared to the previous quarter.
- Operational efficiency declined, with the percentage of EBITDA to sales decreasing to 16.5% in October-December 2023 from 18.5% in the same period in 2022, and the percentage of EBIT to sales declining to 12.8% from 14.5% in October-December 2022 and 12.9% in July-September 2023.
- Segmental performance varied, with certain segments experiencing declines; the <6T and MHCV segments decreased by 4.7% and 1.5%, respectively, compared to the same period in 2022, while the 2 Wheelers segment demonstrated significant growth of 19.0% year-on-year, albeit experiencing a slight decline of 1.5% compared to the previous quarter.
- Looking ahead, despite challenges in specific segments, CIE Automotive’s India operations are positioned for growth in 2024, driven by positive market expectations and the ramp-up of new projects across all verticals.
CIE Automotive Share Price Target 2024 To 2030
CIE Automotive Share Price Target 2024
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| April | ₹493.34 | ₹428.99 |
| May | ₹486.05 | ₹422.65 |
| June | ₹503.54 | ₹437.86 |
| July | ₹498.51 | ₹433.49 |
| August | ₹518.45 | ₹450.82 |
| September | ₹539.19 | ₹468.86 |
| October | ₹528.61 | ₹459.66 |
| November | ₹544.47 | ₹473.45 |
| December | ₹558.08 | ₹485.29 |
In 2024, CIE Automotive’s share price is anticipated to witness fluctuations, with an upward trajectory projected. The maximum prices are expected to range from April ₹493.34 to ₹558.08 in December. Conversely, the minimum prices are forecasted to fluctuate from ₹428.99 in April to ₹485.29 in December. Despite potential market volatilities, the expected price will likely follow an ascending trend throughout the year, with investors eyeing the maximum targets as indicative of potential gains. However, it’s important to note that the minimum prices provide a crucial gauge for potential downturns, suggesting potential buying opportunities amidst market fluctuations.
CIE Automotive Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹569.25 | ₹437.88 |
| February 2025 | ₹583.84 | ₹449.11 |
| March 2025 | ₹606.61 | ₹466.62 |
| April 2025 | ₹594.72 | ₹457.47 |
| May 2025 | ₹577.40 | ₹444.15 |
| June 2025 | ₹603.38 | ₹464.14 |
| July 2025 | ₹591.55 | ₹455.04 |
| August 2025 | ₹609.84 | ₹469.11 |
| September 2025 | ₹631.19 | ₹485.53 |
| October 2025 | ₹647.60 | ₹498.15 |
| November 2025 | ₹663.79 | ₹510.61 |
| December 2025 | ₹680.38 | ₹523.37 |
In 2025, CIE Automotive’s share price is poised for continued growth, with the maximum prices projected to rise steadily throughout the year. From ₹569.25 in January to ₹680.38 in December, the expected price will exhibit an upward trend, reflecting investor optimism and market confidence. Conversely, the minimum prices are also anticipated to increase, ranging from ₹437.88 in January to ₹523.37 in December. This indicates a favorable outlook for the company’s stock, with potential opportunities for investors to capitalize on both the maximum targets for potential gains and the rising minimum prices, suggesting sustained market strength.
CIE Automotive Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹714.40 | ₹500.08 |
| 2027 | ₹785.84 | ₹550.09 |
| 2028 | ₹1,100.18 | ₹550.09 |
| 2029 | ₹952.54 | ₹476.27 |
| 2030 | ₹1,238.30 | ₹866.81 |
In the forthcoming years from 2026 to 2030, CIE Automotive’s share price targets indicate a promising trajectory, with consistent growth anticipated. The maximum price projections are expected to ascend steadily, reaching ₹714.40 in 2026, ₹785.84 in 2027, ₹1,100.18 in 2028, ₹952.54 in 2029, and ₹1,238.30 in 2030. Conversely, the minimum price targets also demonstrate a similar upward trend, with figures ranging from ₹500.08 in 2026 to ₹866.81 in 2030. These forecasts suggest a favorable outlook for CIE Automotive’s stock, reflecting potential opportunities for investors to capitalize on sustained market optimism and the company’s underlying growth prospects.
CIE Automotive’s Financial Condition (Last 5 Years)
| Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | |
| Sales + | 7,908 | 6,050 | 6,765 | 8,753 | 9,280 |
| Expenses + | 6,940 | 5,549 | 5,823 | 7,581 | 7,857 |
| Operating Profit | 968 | 501 | 942 | 1,172 | 1,423 |
| OPM % | 12% | 8% | 14% | 13% | 15% |
| Other Income + | 28 | 55 | 32 | -749 | 410 |
| Interest | 52 | 55 | 35 | 23 | 107 |
| Depreciation | 316 | 306 | 273 | 296 | 322 |
| Profit before tax | 628 | 195 | 666 | 104 | 1,403 |
| Tax % | 44% | 45% | 41% | 231% | 20% |
| Net Profit + | 354 | 106 | 393 | -136 | 1,125 |
| EPS in Rs | 9 | 3 | 10 | -4 | 30 |
| Dividend Payout % | 0% | 0% | 24% | -70% | 17% |
Over the past five years, CIE Automotive’s financial performance has exhibited fluctuations but generally shows signs of resilience and growth. Sales witnessed a decline from ₹7,908 crore in December 2019 to ₹6,050 crore in December 2020, attributed to various factors impacting the automotive industry. However, the company managed to rebound, with sales gradually increasing to ₹9,280 crore by December 2023, indicating a recovery and potential market expansion. Despite varying expenses, operating profit showcased a positive trend, rising from ₹968 crore in December 2019 to ₹1,423 crore in December 2023, reflecting improved operational efficiency and strategic management.
Other income fluctuated over the years, notably experiencing a significant downturn in December 2022 due to unforeseen circumstances. Despite challenges, CIE Automotive demonstrated resilience, recording a notable recovery in other income by December 2023. Similarly, net profit experienced fluctuations but remained positive overall, demonstrating the company’s ability to navigate through uncertainties and capitalize on opportunities.
However, it’s essential to note the volatility in tax percentages, particularly in December 2022, which reached an unusually high 231%. This anomaly may require further investigation to understand its underlying causes and implications for the company’s financial health. Nevertheless, CIE Automotive’s dividend payout percentage remained relatively stable, indicating a commitment to returning value to shareholders amidst market fluctuations.
FAQS
- What is the current market capitalization of CIE Automotive India Ltd?
- The current market capitalization of CIE Automotive India Ltd is ₹16,902 crore.
- What is the stock’s current price?
- The current price of CIE Automotive India Ltd stock is ₹446.
- What is the highest and lowest price the stock has reached?
- The highest price reached by the stock is ₹580, while the lowest price is ₹332.
- What is the price-to-earnings (P/E) ratio of CIE Automotive India Ltd?
- The stock’s price-to-earnings (P/E) ratio is 21.2.
- What is the book value per share?
- The book value per share of CIE Automotive India Ltd is ₹158.
- What is the dividend yield of the stock?
- The dividend yield of CIE Automotive India Ltd is 0.56%.
- What are the return on capital employed (ROCE) and return on equity (ROE) percentages?
- The return on capital employed (ROCE) is 18.3%, and the return on equity (ROE) is 14.4%.
Should one invest in CIE Automotive?
Investing in CIE Automotive warrants careful consideration, balancing both the company’s financial performance and market dynamics. With a current market capitalization of ₹16,902 crore and a stock price of ₹446, CIE Automotive India Ltd has demonstrated resilience in its operational landscape. The company, a subsidiary of CIE Automotive S.A, Spain, stands as a significant player in the automotive components sector, catering to both domestic and international markets. Despite fluctuations, its stock exhibits a price-to-earnings (P/E) ratio of 21.2 and a dividend yield of 0.56%, reflecting stability and potential returns for investors.
Examining its financial health over the past five years, CIE Automotive has showcased consistent sales growth, reaching ₹9,280 crores in December 2023. Moreover, its operating profit margin has strengthened from 12% in December 2019 to 15% in December 2023, indicating operational efficiency. However, challenges persist, including a low return on equity (ROE) of 14.4% and a notable decline in promoter holding over the last three years.
A comparative analysis within the sector reveals CIE Automotive’s competitive positioning. Despite trading at 2.82 times its book value, its operational metrics, such as debtor days improvement and return on capital employed (ROCE) of 18.3%, underscore its potential for growth.
Investors should weigh these factors alongside broader market trends and the company’s strategic initiatives, particularly its focus on electric vehicle (EV) product portfolios. While CIE Automotive presents opportunities, potential investors should conduct thorough due diligence and consult with financial advisors to make informed investment decisions aligned with their risk appetite and investment goals.
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