Mahindra CIE Automotive approves dividend, Q4 profit up 153%

The company has said in a stock exchange filing that the Board of Directors “has recommended dividend of Rs. 2.50/- (Two Rupees Fifty Paisa only) per ordinary equity share of face value of Rs. 10/- each for the financial year ended 31st December 2022. The payment of dividend is subject to approval of the members of the Company at the ensuing 24th Annual General Meeting (AGM) of the Company, the date of which shall be fixed by the Board and communicated separately in due course of time. Further, the Dividend shall be payable, within 30 days from the date of the AGM to those members whose name appear in the Register of Members or list of Beneficial Holders as received from Depositories as on the record date, which shall be decided by the Board.”

The company recorded a 152.63 percent YoY growth in consolidated net profit for the fourth quarter or Q4 CY2022, coming in at ₹194.83 crore vs ₹77.12 crore in the same quarter previous year. Revenue for the quarter climbed to ₹2,246.83 crore from ₹1,169.24 crore in the corresponding quarter last year. The company said its Ebitda was up 62.19% at ₹292.40 crore and Ebitda Margin at 13.01%. “4QCY22 was the first quarter without MFE Germany and MACA’s overall performance in the quarter was in line with our estimates. The India business outperformed the European business, driven by strong domestic demand, while Europe demand showed signs of improvement, on the back of cost pass through and easing chip shortages. Given the moderation in commodity costs and partial pass-through of energy costs, we expect margins in both geographies to improve from here on,” said Motilal Oswal.

“MCI stock price has grown ~11% CAGR past 5 years (from ~ ₹230 levels in Feb 2018), outperforming the Nifty Auto index in that time. We retain BUY, tracking healthy demand outlook, value accretion post selling of its German forging operations; improved financials; order wins in EV space, strong CFO yields (~7%) & healthy double digit return ratios. Rolling over our valuations & switching to PE valuation methodology, we now value MCI at ₹500 i.e., 20x PE on CY24E EPS of ₹25/share.” said ICICI Securities in a note.

On Friday the shares of Mahindra CIE Automotive closed on the NSE at a fresh 52-week-high level ₹448.20 apiece, up by 15.65% from the previous close of ₹387.55. The stock recorded NSE + BSE volume average of 10,378,737 shares and a deliverable volume average of 100,362,387 shares or 9.67%.