Motilal Oswal's research report on CIE Automotive India
CIEINDIA’s 1QCY25 EBITDA/PAT of INR3.4b/INR2.1b came in ahead of our estimates of INR3.2b/INR1.9b. While Europe demand remained weak and was down 19% YoY, it was still better than our estimate. With EU demand remaining uncertain, management continues to focus on driving growth in India through capacity expansion, deeper customer engagements, and leveraging its existing product and segment diversification. We cut our CY25/CY26 EPS estimates by 4%/5% to account for continued demand weakness, especially in Europe. The Indian business is projected to be the primary growth driver for the company even in CY26. CIEINDIA remains focused on sustaining profitability through operational efficiencies.
Outlook
The stock trades at 20x/18.3x CY25E/CY26E consolidated EPS. Reiterate BUY with a TP of INR463 (~21x Dec’26E consolidated EPS).
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