ICICI Securities research report on CIE Automotive India
CIE Automotive’s (CAIL) Q4CY24 consolidated PAT of INR 1.8bn was lower than consensus estimate of INR 1.9bn, with ~4% miss in revenue and ~100bps miss in EBITDA margin. EU revenue continued to be weak and was down 2% QoQ, at INR 5.8bn, on the back of continued slowdown in Metalcastello and Europe CV segment. India revenue was down 1% QoQ at ~INR 15bn, in line with industry growth. CAIL expects strong growth in India business led by ramp-up of new programmes to offset muted growth in Europe business. We cut CY25E EPS by ~10% to account for continued slowdown in Europe business and delay in ramp-up of fresh projects.
Outlook
Maintain BUY with a DCF-based revised TP of INR 560 (earlier: INR 675), implying 20x CY26E EPS.
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