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Mahindra CIE Automotive Ltd. Stock Analysis

Mid Cap
Evaluated by 1035 users | BSE: 532756 | NSE: MAHINDCIE |
Forgings
Mahindra Forgings company was incorporated under the name Mahindra Automotive Steels Limited on 13th August, 1999. The Certificate for commencement of Business was obtained on 5th October, 1999.The company was a non operating company. Pursuant to a Scheme of Arrangement between Amforge...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Mahindra CIE Automotive Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Capital Employed 2.91%5.48%-5.44%-2.84%4.64%5.02%5.48%8.39%9.79%6.35%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,9252,4402,2162,5915,5705,1545,3206,5208,1037,954
Y-o-Y Gr. Rt.-26.8%-9.2%16.9%115%-7.5%3.2%22.6%24.3%-1.8%
Adjusted EPS (Rs.) 0.65.54-12.35-9.120.855.314.529.6139.08
Y-o-Y Gr. Rt.-823.3%-322.9%NANA524.7%-14.9%112.4%35.4%-30.2%
Book Value per Share (Rs.) 87.8293.981.1470.4658.3282.6986.1997.91113.06122.16
Adjusted Net Profit 5.351.1-114-84.227.5172171363493344
Net Op. Cash Flow (Rs. Cr.) 51.82461022113229063045127081,027
Debt to Cash Flow from Ops 13.462.466.713.484.811.64.582.342.281.43
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Mahindra CIE Automotive Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 17.1%7.4%14.4%-1.8%
Adjusted EPS 35.2%60.6%26.2%-30.2%
Book Value per Share 3.715.912.38.1
Share Price 11.9% -8.3% -14% 5.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Equity (%) 0.666.15-14-11.942.166.626.4810.412.317.72
Operating Profit Margin (%) 9.458.541.964.347.939.49.9812.4912.4112.02
Net Profit Margin (%) 0.272.09-5.14-3.250.493.333.215.576.084.33
Debt to Equity 0.90.70.911.130.820.540.430.320.380.32
Working Capital Days 1081021058466136114118111109
Cash Conversion Cycle 625256405-21-33-21-52
Entity Percentage Holding
Promoters 71.61%
Institutions 17.83%
Non-Institutions 10.56%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Mahindra CIE Automotive Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Mahindra CIE Automotive Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Mahindra CIE Automotive Ltd.'s performance infers:

Mahindra CIE Automotive Ltd. earnings have grown by 60.6%, whereas share price has depreciated -8.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Mahindra CIE Automotive Ltd. share prices over the last 10 years. Here is what we found out:

Mahindra CIE Automotive Ltd. share price has depreciated 7% annually over the past ten years.

Mahindra Forgings company was incorporated under the name Mahindra Automotive Steels Limited on 13th August, 1999. The Certificate for commencement of Business was obtained on 5th October, 1999.

The company was a non operating company. Pursuant to a Scheme of Arrangement between Amforge Industries Ltd. and Mahindra Automotive Steels Limited, the entire Chakan unit of Amforge Industries Ltd. as a going concern together with all the assets and liabilities relating to the Chakan unit has been

Mahindra Forgings company was incorporated under the name Mahindra Automotive Steels Limited on 13th August, 1999. The Certificate for commencement of Business was obtained on 5th October, 1999.

The company was a non operating company. Pursuant to a Scheme of Arrangement between Amforge Industries Ltd. and Mahindra Automotive Steels Limited, the entire Chakan unit of Amforge Industries Ltd. as a going concern together with all the assets and liabilities relating to the Chakan unit has been transferred to and vested in Mahindra Automotive Steels Limited with effect from 1st April 2005.

Mahindra's forging and machining facility is one of the finest and amongst the top 3 forging companies in India, with an installed capacity of 42,000 MT. Mahindra Forgings is the largest supplier of forged components (like crankshafts and steering knuckles) to the Indian Automotive market, commanding a 40% market share. Its presses churn out approximately 1 million crankshafts and 0.5 million steering knuckles per annum.

With capabilities of developing new parts in the shortest period of time, MASL consistently offers the best forging solutions in the market. Mahindra Forgings Limited (MFL) is a wholly owned subsidiary of Mahindra & Mahindra Ltd. and has recently acquired Chakan unit of Amforge Industries Limited.

Forging involves production of those parts which must be heated in a closed furnace and forged to a predetermined shape. The company manufacturers a wide range of forgings from 500 grams to 45 kilograms and upto 1 metre in length. These include auto and diesel engine components, crankshafts, connecting rods, crown wheels, pinions, bull gears, stub axles, spindles, differential cases and covers, valve bodies, track links, rollers and assemblies, and carbon steel and stainless steel flanges.

Under a scheme of arrangement sanctioned by the Bombay High Court. The company established presence in the European market by acquiring Stokes Group Limited, Jeco Holdings AG and Schöneweiss & Co. GmbH  in November 2007, under a scheme of arrangement sanctioned by the Bombay High Court.

Product range of the company includes-

  • Crank Shafts- it supplies both Forged and Fully machined crankshafts for cars, MUV, LCV and Tractors. It is the largest producer in these segments. Is source for Tata Indica, Sumo/Safari, M&M MUVs & Maruti Suzuki.
  • Stub Axle- it supplies both forged and finished stub axles to MUV, LCV and MCVs.
  • Connecting Rods- Supply of Connecting Rods to Tractors and Off-Highway applications. Its other products include Suspension parts like Steering Arm, Links / Carrier, Control Arm, Upper Arm, Bridge Fork and Axle parts like Spindle, Knuckle etc.

Milestones of the company

  • 2011      Third crankshaft machining line installed   New MAKINO installed at Tool Room for Die production   
  • 2010     Received New Product Development Award from Volvo Eicher    Received Best Supplier Award from Kirloskar Oil Engines Ltd. (KOEL)   
  • 2009      MFL was qualified by Nissan for Monozukuri Audit.   MFL was qualified by Renault for ASES audit.    Doubled the installed capacity from 40000 MT to 86000 MT by setting up two 4000 Ton Presses & one 6300 Ton Press     
  • 2008     Tool and Die Shop Installed   
  • 2007    Two steering knuckle machining line installed – 150K per annum installed   Two crankshaft machining lines installed – 120K per annum   
  •  2006   Received Best Supplier Award from Benteler USA   Acquired Vauxhall machining lines from GM, UK   Plant Acquired by M&M    Received Best Supplier Award from FIAT   
  • 2005 -TS 16949 Certification obtained. Amforge, Chakan Unit becomes a part of the Mahindra & Mahindra Group.  
  • 2004     TS- 16949 Awarded by BVQI    
  • 1996     Plant established in 1996 by Amforge.   
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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