Mahindra CIE Automotive firms up after broker initiates coverage

Mahindra CIE Automotive rose 3.58% to Rs 259.20 at 11:11 IST on BSE after a domestic brokerage firm reportedly initiated coverage on the stock with a 'buy' rating and a target price of Rs 297 per share.

Meanwhile, the S&P BSE Sensex was up 19.50 points, or 0.06% to 33,931.31.

On the BSE, 1.80 lakh shares were traded in the counter so far, compared with average daily volumes of 7.09 lakh shares in the past two weeks. The stock had hit a high of Rs 261.50 and a low of Rs 256 so far during the day. The stock hit a 52-week high of Rs 270.05 on 26 December 2017. The stock hit a 52-week low of Rs 177 on 29 December 2016.

The brokerage firm reportedly believes that strong earnings growth and limited capex will drive improvement in capital efficiencies of Mahindra CIE Automotive.

Mahindra CIE Automotive's net profit rose 44.91% to Rs 20.36 crore on 20.85% growth in net sales to Rs 484.25 crore in Q3 September 2017 over Q3 September 2016.

Mahindra CIE is a multi-technology automotive components supplier.

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