BSE:532756

Stock Analysis Report

Mahindra CIE Automotive

Executive Summary

Mahindra CIE Automotive Limited manufactures and supplies automotive components in India and internationally.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Mahindra CIE Automotive's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

532756

3.2%

IN Auto Components

2.4%

IN Market


1 Year Return

-43.6%

532756

-20.6%

IN Auto Components

8.0%

IN Market

Return vs Industry: 532756 underperformed the Indian Auto Components industry which returned -20.6% over the past year.

Return vs Market: 532756 underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

532756IndustryMarket
7 Day4.3%3.2%2.4%
30 Day-14.3%0.5%2.5%
90 Day-21.7%2.4%3.6%
1 Year-43.6%-43.6%-19.8%-20.6%10.3%8.0%
3 Year-22.9%-22.9%-10.7%-12.8%22.3%16.0%
5 Year-15.7%-15.7%28.0%23.1%42.8%29.3%

Price Volatility Vs. Market

How volatile is Mahindra CIE Automotive's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mahindra CIE Automotive undervalued compared to its fair value and its price relative to the market?

10.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532756 (₹149.15) is trading above our estimate of fair value (₹109.7)

Significantly Below Fair Value: 532756 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532756 is good value based on its PE Ratio (10.1x) compared to the Auto Components industry average (13.2x).

PE vs Market: 532756 is good value based on its PE Ratio (10.1x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 532756 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 532756 is good value based on its PB Ratio (1.3x) compared to the IN Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Mahindra CIE Automotive forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532756's forecast earnings growth (8.5% per year) is above the savings rate (7.6%).

Earnings vs Market: 532756's earnings (8.5% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: 532756's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532756's revenue (6.1% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 532756's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532756's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Mahindra CIE Automotive performed over the past 5 years?

62.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532756 has become profitable over the past 5 years, growing earnings by 62.6% per year.

Accelerating Growth: 532756's earnings growth over the past year (22.1%) is below its 5-year average (62.6% per year).

Earnings vs Industry: 532756 earnings growth over the past year (22.1%) exceeded the Auto Components industry -4.6%.


Return on Equity

High ROE: 532756's Return on Equity (12.4%) is considered low.


Return on Assets

ROA vs Industry: 532756's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: 532756 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Mahindra CIE Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: 532756's short term assets (₹25.2B) do not cover its short term liabilities (₹30.8B)

Long Term Liabilities: 532756's short term assets (25.2B) exceeds its long term liabilities (14.7B)


Debt to Equity History and Analysis

Debt Level: 532756's debt to equity ratio (34.2%) is considered satisfactory

Reducing Debt: 532756's debt to equity ratio has reduced from 96.8% to 34.2% over the past 5 years.

Debt Coverage: 532756's debt is well covered by operating cash flow (45.9%).

Interest Coverage: 532756's interest payments on its debt are well covered by EBIT (31.9x coverage).


Balance Sheet

Inventory Level: 532756 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532756's debt is covered by short term assets (assets are 1.631280x debt).


Next Steps

Dividend

What is Mahindra CIE Automotive's current dividend yield, its reliability and sustainability?

0.80%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage1.0%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 532756's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532756's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 532756's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532756's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532756's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Mahindra CIE Automotive's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Ander Alvarez (51yo)

3.3yrs

Tenure

₹1,540,000

Compensation

Mr. Ander Arenaza Alvarez has been the Chief Executive Officer of Mahindra CIE Automotive Limited since July 26, 2016 and has been its Whole Time Director since September 13, 2016. Mr. Alvarez serves as a  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Ander's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Ander's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.8yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 532756's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 532756's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹1,120,67227 May 19
Anup Mishra
EntityIndividual
Shares5,000
Max Price₹224.13
Sell₹1,287,90022 Mar 19
Anup Mishra
EntityIndividual
Shares5,300
Max Price₹243.00

Ownership Breakdown


Management Team

  • Pradeep Zoting

    General Manager of Human Resources

    • Tenure: 11.1yrs
  • Atul Kale

    Head of Materials

    • Tenure: 0yrs
  • Shankar Urolagin

    Head of Engineering & Tool Room

    • Tenure: 5.8yrs
    • Compensation: ₹7.25m
  • Vijay Deogaonkar

    Head of Manufacturing

    • Tenure: 5.8yrs
    • Compensation: ₹8.52m
  • Advait Halbe

    Head of Marketing

    • Tenure: 5.8yrs
    • Compensation: ₹7.51m
  • I. Singh

    General Manager of Operations

    • Tenure: 12.2yrs
  • K. Jayaprakash (55yo)

    Chief Financial Officer

    • Tenure: 3yrs
    • Compensation: ₹8.19m
  • Ander Alvarez (51yo)

    CEO & Whole Time Director

    • Tenure: 3.3yrs
    • Compensation: ₹1.54m
  • Vikas Sinha (46yo)

    Senior Vice President of Strategy

    • Tenure: 4.8yrs
    • Compensation: ₹10.06m
  • Pankaj Goyal (33yo)

    Company Secretary & Compliance Officer

    • Tenure: 0.5yrs

Board Members

  • Hemant Luthra (70yo)

    Non-Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: ₹54.32m
  • Dhananjay Mungale (66yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: ₹1.02m
  • Manojkumar Maheshwari (53yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: ₹810.00k
  • Zhooben Bhiwandiwala (59yo)

    Non-Independent & Non-Executive Director

    • Tenure: 5.3yrs
  • Jesus Maria Herrera Barandiaran (52yo)

    Non-Independent & Non-Executive Director

    • Tenure: 6yrs
  • Manoj Menon (51yo)

    CEO of Foundry

    • Tenure: 0yrs
    • Compensation: ₹6.45m
  • Shriprakash Shukla (60yo)

    Non Executive Non-Independent Director

    • Tenure: 4.5yrs
  • Suhail Nathani (54yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹300.00k
  • Ander Alvarez (51yo)

    CEO & Whole Time Director

    • Tenure: 3.3yrs
    • Compensation: ₹1.54m
  • Kadambi Narahari (66yo)

    Independent Director

    • Tenure: 0.08yrs

Company Information

Mahindra CIE Automotive Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mahindra CIE Automotive Limited
  • Ticker: 532756
  • Exchange: BSE
  • Founded: 1999
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹57.648b
  • Shares outstanding: 379.01m
  • Website: https://www.mahindracie.com

Number of Employees


Location

  • Mahindra CIE Automotive Limited
  • Mahindra Towers
  • 1st Floor
  • Mumbai
  • Maharashtra
  • 400018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532756BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2006
MAHINDCIENSEI (National Stock Exchange of India)YesEquity SharesININRAug 2006

Biography

Mahindra CIE Automotive Limited manufactures and supplies automotive components in India and internationally. Its products include crankshafts, oil sumps, engine gears, turbo housings, connecting rods, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:39
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.