ICICI Securitie`s research report on CIE Automotive India
CIE Automotive’s (CAIL) Q1CY25 consolidated PAT of INR 2.1bn was 3% higher than I-Sec’s estimate of INR 2bn. Revenue was largely in-line with 30bps beat in EBITDA margin. EU revenue continued to be weak and was down 19% YoY, at INR 7.8bn, on the back of continued slowdown in Metalcastello and Europe CV segment. India revenue was up 3% YoY at INR 14bn, in line with industry growth.
Outlook
CAIL expects strong growth in India business led by ramp up of new programmes to offset muted growth in Europe. We cut CY25/26E EPS by 8%/11% to account for continued slowdown in Europe business and delay in ramp up of fresh projects. Maintain BUY with a DCF-based revised TP of INR 500 (earlier: INR 560), implying 20x CY26E EPS.
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