Mahindra CIE hits new low

Mahindra CIE, erstwhile Mahindra Forgings making engine and chassis forged components for commercial and passenger vehicles. M&M, Maruti, Tata Motors, Hero MotoCorp and Bajaj combined constitute more than 50% of its business.

The stock was the top loser on the BSE in the morning session on the back of its disappointing earnings for Q2CY19. And the company said that June was the worst month due to customer inventory regulation. Consolidated net revenue rose 3.2% (YoY)  at Rs.2142 crore but EBITDA fell 7% at Rs.269 crore and margins declined sharply from 14.9% to 13.1%. Net profit fell from Rs.139 crore to Rs.126 crore.

Revenue from India fell 12% at Rs.973 crore and that from Europe fell 4% at Rs.1173 crore.

EPS came in at Rs.3.33 v/s Rs.3.67 (FV of Rs.10) on an equity of Rs.379 crore.

Its net debt (= Debt with banks and other financial institutions – Cash and equivalents) has gone up from Rs.725 crore to Rs.1181 crore.

The stock opened lower today at Rs.200.75, a fall of almost 3% and then went on to hit a new 52-week low at Rs.183.70.