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

Motilal Oswal

External broker reports(aggregated public sources)

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.

Equity Bottom-Up

<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

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

ICICI Securities Limited

<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

<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

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<p><a href="https://www.smartkarma.com/entities/sona-blw-precision-forgings" target="_blank" data-smartkarma-citation="entities:32993:1" rel="noopener">Sona BLW Precision Forgings (SPF IN)</a>/Sona Comstar is one of India’s leading auto technology companies that designs, manufactures, and supplies highly engineered, mission-critical systems and components. Sona Comstar is looking to raise Rs60 billion ($820 million) through an IPO in India as soon as April, according to press reports. The offer comprises a primary raise of Rs3 billion ($41 million) and a secondary raise of Rs57 billion ($777 million). The selling shareholder is <a href="https://www.smartkarma.com/entities/blackstone-group-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone Group LP (BX US)</a>.  </p><div class="content-highlight"><p>Sona Comstar’s broad product portfolio which spans both conventional and electrified powertrains position it to gain from high growth auto industry trends (rising penetration of mild hybrids/full hybrids and battery electric vehicles) as well as various Government of India initiatives to spur the growth of the auto industry (such as recently announced Rs570 billion production-linked incentive scheme). Overall, we think that Sona Comstar is an attractive and alternative play on the electric vehicle market.</p></div>

Sona BLW Precision Forgings (SPF IN)/Sona Comstar is one of India’s leading auto technology companies that designs, manufactures, and supplies highly engineered, mission-critical systems and components. Sona Comstar is looking to raise Rs60 billion ($820 million) through an IPO in India as soon as April, according to press reports. The offer comprises a primary raise of Rs3 billion ($41 million) and a secondary raise of Rs57 billion ($777 million). The selling shareholder is Blackstone Group LP (BX US).  Sona Comstar’s broad product portfolio which spans both conventional and electrified powertrains position it to gain from high growth auto industry trends (rising penetration of mild hybrids/full hybrids and battery electric vehicles) as well as various Government of India initiatives to spur the growth of the auto industry (such as recently announced Rs570 billion production-linked incentive scheme). Overall, we think that Sona Comstar is an attractive and alternative play on the electric vehicle market.

Sona Comstar IPO Initiation: Shifting Gears

India

CIE Automotive India is a multi-technology automotive components supplier that manufactures and sells a wide range of products including forgings, stampings, aluminum castings, gears, magnetic products, and composites. These components are supplied to original equipment manufacturers (OEMs) and other customers for various automotive segments, such as passenger vehicles, commercial vehicles, two-wheelers, and tractors. The company is headquartered in Mumbai, India, with an operational headquarters in Pune, and was incorporated in 1999.

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CIE Automotive India (CIEINDIA IN)

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

Sona Comstar IPO Initiation: Shifting Gears

Sona Comstar is looking to raise Rs60 bn ($820 m) through an IPO in India. Overall, we think that Sona Comstar is an attractive and alternative...

Arun George

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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

Sona Comstar IPO Initiation: Shifting Gears

Sona Comstar is looking to raise Rs60 bn ($820 m) through an IPO in India. Overall, we think that Sona Comstar is an attractive and alternative...

Arun George

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...