Buy CIE Automotive India; target of Rs 650: Motilal Oswal

Motilal Oswal is bullish on CIE Automotive India recommended buy rating on the stock with a target price of Rs 650 in its research report dated October 11, 2024.

Broker Research

October 14, 2024 / 15:22 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on CIE Automotive India

We recently met with the management of CIE Automotive (CIEINDIA), and following are the KTAs from the discussion. The domestic market is experiencing a weak demand phase in the tractor and PV segments, while 2W continues to perform relatively well. The global auto market, particularly in Europe, remains sluggish. The EV transition in India continues to evolve as a growth opportunity, given the healthy new order wins. Additionally, the risk of EV transition in Europe remains mitigated, given that: 1) most European OEMs are now reconsidering their EV transition deadlines and 2) hybrids are likely to gain traction in Europe, which augurs well for CIEINDIA. However, the management remains committed to focusing on: 1) outperforming the core domestic industry growth in the long run; 2) further improving operational efficiencies in India; and 3) revising costs in Europe to the new normal. Given its focus on operational efficiencies, CIEINDIA has evolved into a highly resilient company. Some of the financial attributes unique to the global ancillary player include: being net debt free, having strict capex/inorganic expansion guidelines, generating positive FCF, and tracking an improving return trajectory.

Outlook

We reiterate BUY with a TP of INR650 (based on ~21x Sep’26E consol. EPS).

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