Mahindra CIE Automotive approves dividend, Q4 profit up 153%

The company said in a stock exchange filing that the board of directors has “recommended a dividend of Rs. 2.50/- (Rupees two fifty paise only) per Ordinary Equity Share of face value of Rs. for the financial year ending December 31, 2022.” 10/- each. The payment of dividend is subject to the approval of the members of the Company at the forthcoming 24th Annual General Meeting (AGM) of the Company, the date of which will be decided by the Company’s Board and notified separately in due course. Further, The dividend shall be payable within 30 days from the date of the AGM to those members whose names appear in the register of members or in the list of beneficial holders received from the depositories on the record date, as may be decided by the Board.”

The company reported a 152.63 percent increase in consolidated net profit for the fourth quarter or Q4 CY2022, which 194.83 cr Vs. 77.12 crore in the same quarter of the previous year. Revenue climbed for the quarter 2,246.83 crores from 1,169.24 crore in the same quarter last year. The company said that its Ebitda has increased by 62.19 percent. 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 Indian business outperformed the European business on strong domestic demand, while demand in Europe showed signs of recovery as costs eased and chip shortages eased. We expect margin improvement in both the geographies, given the reduction in commodity costs and partial pass-through of energy costs, Motilal Oswal said.

“MCI stock price has grown at ~11% CAGR over last 5 years (~ 230 level in February 2018), outperforming the Nifty Auto index during that time. We retain buy tracking healthy demand outlook, value addition following the sale of its German forging operations; better financial; Order wins in the EV space, strong CFO yield (~7%) and healthy double digit return ratio. Rolling over our valuations and switching to PE valuation methodology, we now value MCI 500 i.e. 20x PE on CY24E EPS 25/share,” ICICI Securities said in a note.

Shares of Mahindra CIE Automotive closed at a 52-week high on the NSE on Friday Closes at 448.20, up 15.65% from previous close 387.55. The stock recorded an NSE + BSE volume average of 10,378,737 shares and a distributable volume average of 100,362,387 shares or 9.67%.