CIE Automotive India Analysis

dividend

Pros

• Dividends after 3 years are expected to be thoroughly covered by earnings (7.4x coverage).

Cons

• Unable to evaluate Mahindra CIE Automotive's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Mahindra CIE Automotive's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• Mahindra CIE Automotive's earnings are expected to grow significantly at over 20% yearly.
• Mahindra CIE Automotive's earnings growth is expected to exceed the India market average.
• Mahindra CIE Automotive's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Mahindra CIE Automotive's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• Mahindra CIE Automotive's net income is expected to increase by more than 50% in 2 years time.
• An improvement in Mahindra CIE Automotive's performance (ROE) is expected over the next 3 years.
• Mahindra CIE Automotive's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Mahindra CIE Automotive is expected to decrease over the next 2 years.
• Mahindra CIE Automotive's earnings are expected to decrease over the next year.
• Mahindra CIE Automotive is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Performance (ROE) is not expected to exceed the current IN Auto Components industry average.
• Mahindra CIE Automotive's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Mahindra CIE Automotive's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Mahindra CIE Automotive is profitable, therefore cash runway is not a concern.
• Mahindra CIE Automotive is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (69.9%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.5x debt.
• Mahindra CIE Automotive's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (81.4% vs 31.7% today).
• Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
• Mahindra CIE Automotive's level of debt (31.7%) compared to net worth is satisfactory (less than 40%).

Cons

• Mahindra CIE Automotive's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Mahindra CIE Automotive board of directors is about average.
• Ander's remuneration is lower than average for companies of similar size in India.
• Ander's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Mahindra CIE Automotive management team is about average.

Cons

misc

Pros

Cons

• Mahindra CIE Automotive has significant price volatility in the past 3 months.

past

Pros

• Mahindra CIE Automotive has delivered over 20% year on year earnings growth in the past 5 years.
• Mahindra CIE Automotive has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Mahindra CIE Automotive's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Mahindra CIE Automotive used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
• Mahindra CIE Automotive has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Mahindra CIE Automotive's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

value

Pros

• Mahindra CIE Automotive is good value based on assets compared to the IN Auto Components industry average.
• Mahindra CIE Automotive is good value based on expected growth next year.

Cons

• Mahindra CIE Automotive's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Mahindra CIE Automotive's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Mahindra CIE Automotive is overvalued based on earnings compared to the IN Auto Components industry average.
• Mahindra CIE Automotive is overvalued based on earnings compared to the India market.
• 532756 underperformed the Auto Components industry which returned -22.4% over the past year.
• 532756 underperformed the Market in India which returned -14.5% over the past year.
• BSE:532756 is up 4% underperforming the Auto Components industry which returned 13.2% over the past month.
• BSE:532756 is up 4% underperforming the market in India which returned 8% over the past month.