External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Mahindra Cie Automotive / Equity Bottom-Up

<div><ul><li>In the EU, Metalcastello is fully booked and management expects it to deliver ~EUR80mn revenue in FY23 while the two CIE plants are expected to clock EUR250mn in CY22.</li><li><p>In India, PVs+CVs currently account for ~50% of revenue vs ~30% from 2Ws+tractors.</p></li><li><p><span style="font-size: var(--content-font-size);">Company has no plans to add more CIE assets as of now though it is open to M&amp;A opportunities to bolster the EV and plastic part portfolios along with addition of new APAC customers.</span></p></li></ul></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

In the EU, Metalcastello is fully booked and management expects it to deliver ~EUR80mn revenue in FY23 while the two CIE plants are expected to clock EUR250mn in CY22.In India, PVs+CVs currently account for ~50% of revenue vs ~30% from 2Ws+tractors.Company has no plans to add more CIE assets as of now though it is open to M&amp;A opportunities to bolster the EV and plastic part portfolios along with addition of new APAC customers.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mahindra CIE Automotive - Strong India Operations Outweighing Weak EU

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<div><ul><li>MACA’s 1QCY22 performance was an all-round beat, led by strong revenue and profitability in the EU and robust margin in India</li><li>We raise our CY22/CY23 EPS estimate by 29%/12% to account for an improvement in revenue and EBITDA margin in India and the EU business</li></ul><div><div><div><div><div><div><div></div></div></div></div><ul><li>Consolidated revenue grew 18% YoY to INR25.9b (est. INR22.8b), EBITDA rose 3.5% to INR3b (est. INR2.24b), and adjusted PAT increased by 6% to INR1.6b (est. INR0.9b) in 1QCY22.</li></ul></div></div><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div></div>

MACA’s 1QCY22 performance was an all-round beat, led by strong revenue and profitability in the EU and robust margin in IndiaWe raise our CY22/CY23 EPS estimate by 29%/12% to account for an improvement in revenue and EBITDA margin in India and the EU businessConsolidated revenue grew 18% YoY to INR25.9b (est. INR22.8b), EBITDA rose 3.5% to INR3b (est. INR2.24b), and adjusted PAT increased by 6% to INR1.6b (est. INR0.9b) in 1QCY22.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mahindra CIE - All-Round Beat, Expect Improvement to Continue

<ul><li>New order wins in EVs/hybrids; Focus on energy cost pass on to customers MACA's weak performance in 4QCY21 was reflection of high RM/energy cost and operating deleverage in both geographies.</li><li>It is negotiating with customers to pass on hyper inflation in energy prices.</li><li>We cut our CY22E EPS estimates by 3.5% to account for margin pressures across both geographies and maintain CY23E EPS estimates.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

New order wins in EVs/hybrids; Focus on energy cost pass on to customers MACA's weak performance in 4QCY21 was reflection of high RM/energy cost and operating deleverage in both geographies.It is negotiating with customers to pass on hyper inflation in energy prices.We cut our CY22E EPS estimates by 3.5% to account for margin pressures across both geographies and maintain CY23E EPS estimates.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Margins impacted by RM Cost and operating deleverage

<p>About the stock: Mahindra CIE (MCI), part of the Spain-based CIE Automotive Group, is a multi-technology, multi-product automotive component supplier.</p><ul><li>CY20 consolidated revenue mix – Europe 52%, India 48%</li><li>Forging is ~63% of consolidated sales (89% in Europe). India mix is more diversified; includes 25% from aluminium, 18%- stampings &amp; 11%- castings</li><li>In India it derives 40%, 32%, 16%, 5% of sales from PV, 2-W, tractors, M&amp;HCV, respectively</li><li>In Europe it derives 48%, 42%, 10% of sales from PV, MHCV, Off highway, respectively</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

About the stock: Mahindra CIE (MCI), part of the Spain-based CIE Automotive Group, is a multi-technology, multi-product automotive component supplier.CY20 consolidated revenue mix – Europe 52%, India 48%Forging is ~63% of consolidated sales (89% in Europe). India mix is more diversified; includes 25% from aluminium, 18%- stampings &amp; 11%- castingsIn India it derives 40%, 32%, 16%, 5% of sales from PV, 2-W, tractors, M&amp;HCV, respectivelyIn Europe it derives 48%, 42%, 10% of sales from PV, MHCV, Off highway, respectivelyContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mahindra CIE Automotive: Renewed Focus on Growth, Margins, Capital Efficiency

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Sona Blw Precision Forgings Lt / Equity Capital Markets

<p>Sona Comstar (Sona) aims to raise around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.</p><p>Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.</p><p>Sona delivered a steady performance in 2019 with revenue up 16.6% and PAT up 24.1%. However, its revenue fell by 14.5% in FY20, although it still managed to grow its PAT by 4%. It registered a strong bounce bank in FY21 with 28.4% revenue growth but PAT was flat.</p><p>While the company enjoys a long customer relationship, its largest customers haven’t consistently grown their contribution to revenue over the past few years.</p><p>We have covered the deal background in our earlier note, <a href="https://www.smartkarma.com/insights/sona-comstar-pre-ipo-inconsistent-growth-patchy-disclosures" target="_blank" rel="noopener">Sona Comstar Pre-IPO - Inconsistent growth, patchy disclosures. </a></p><p>In this note, we will talk about the recent updates and run the deal through our ECM framework.</p>

Sona Comstar (Sona) aims to raise around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.Sona delivered a steady performance in 2019 with revenue up 16.6% and PAT up 24.1%. However, its revenue fell by 14.5% in FY20, although it still managed to grow its PAT by 4%. It registered a strong bounce bank in FY21 with 28.4% revenue growth but PAT was flat.While the company enjoys a long customer relationship, its largest customers haven’t consistently grown their contribution to revenue over the past few years.We have covered the deal background in our earlier note, Sona Comstar Pre-IPO - Inconsistent growth, patchy disclosures. In this note, we will talk about the recent updates and run the deal through our ECM framework.

Sona Comstar - Has Its Positives, but We Remain Unconvinced

India

Mahindra CIE Automotive Limited designs, manufactures, installs, and repairs automotive components. The Company manufactures automotive components including engine and steering components as well as various other forged metal products.

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Mahindra Cie Automotive (MACA IN)

Mahindra CIE Automotive - Strong India Operations Outweighing Weak EU

In the EU, Metalcastello is fully booked and management expects it to deliver ~EUR80mn revenue in FY23 while the two CIE plants are expected to...

ICICI Securities Limited

Mahindra CIE - All-Round Beat, Expect Improvement to Continue

MACA’s 1QCY22 performance was an all-round beat, led by strong revenue and profitability in the EU and robust margin in India

Motilal Oswal

Margins impacted by RM Cost and operating deleverage

New order wins in EVs/hybrids; Focus on energy cost pass on to customers MACA's weak performance in 4QCY21 was reflection of high RM/energy...

Motilal Oswal

Mahindra CIE Automotive: Renewed Focus on Growth, Margins, Capital Efficiency

Mahindra CIE (MCI), part of the Spain-based CIE Automotive Group, is a multi-technology, multi-product automotive component supplier.

ICICI Securities Limited

Sona Comstar - Has Its Positives, but We Remain Unconvinced

Sona Comstar aims to raise around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.

Sumeet Singh

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Mahindra CIE Automotive - Strong India Operations Outweighing Weak EU

In the EU, Metalcastello is fully booked and management expects it to deliver ~EUR80mn revenue in FY23 while the two CIE plants are expected to...

ICICI Securities Limited

Mahindra CIE - All-Round Beat, Expect Improvement to Continue

MACA’s 1QCY22 performance was an all-round beat, led by strong revenue and profitability in the EU and robust margin in India

Motilal Oswal

Margins impacted by RM Cost and operating deleverage

New order wins in EVs/hybrids; Focus on energy cost pass on to customers MACA&#x27;s weak performance in 4QCY21 was reflection of high RM/energy...

Motilal Oswal

Mahindra CIE Automotive: Renewed Focus on Growth, Margins, Capital Efficiency

Mahindra CIE (MCI), part of the Spain-based CIE Automotive Group, is a multi-technology, multi-product automotive component supplier.

ICICI Securities Limited

Sona Comstar - Has Its Positives, but We Remain Unconvinced

Sona Comstar aims to raise around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.

Sumeet Singh

New order wins in EVs/hybrids; Focus on energy cost pass on to customers MACA's weak performance in 4QCY21 was reflection of high RM/energy...