ICICI Securities's research report on CIE Automotive India
CIE Automotive’s (CAIL) Q2CY25 consolidated revenue at INR 24bn was ~3% higher vs ISec estimate, and EBITDA margin at 14.2% was ~30bps lower than ISec estimate. India revenue was up 7% YoY at ~INR 15bn, vs industry growth of 5% YoY. Europe revenue was down ~1% YoY at INR 8.3bn, with favourable exchange rate impact of 7% offsetting muted sales in Europe CV segment and weakness in Metalcastello business. Consolidated EBITDA margin at 14.2% was down 150bps YoY, led by margin decline in EU business. In near to medium term, the company expects strong growth in India business led by ramp up of new programmes to offset muted growth in Europe.
Outlook
Maintain BUY with DCF-based unchanged target price of INR 510, implying 20x CY26E EPS.
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