CIE Automotive India Ltd. share price target

We maintain our BUY rating on the stock.

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.

We believe CIE's technological strengths will continue to support its valuation, similar to its listed MNC peers in the sector. However, due to weaker demand in Europe and the U.S., along with a slower-than-expected EV ramp-up, we are revising our PAT guidance downward, maintaining a cautious stance on margin estimates for near term. We expect the geopolitical shift in the supply chain realignment to benefit the domestic market in the long run, which is expected to factor in the price and the valuation looks reasonable at the given margin. CIE has...

We maintain our BUY rating on the stock.

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.

We maintain our BUY rating on the stock.

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.

CIEINDIA’s 4QCY24 EBITDA/PAT of INR2.99b/INR1.8b came in below our estimates of INR3.2b/INR1.9b, due to a weak demand macro in India and Europe.

We maintain our BUY rating on the stock.

The domestic market is experiencing a weak demand phase in the tractor and PV segments, while 2W continues to perform relatively well.

CIEINDIA is a large, diversified auto-components group with a presence across many processes, product lines, geographies, and customers. The company’s unique combination of specialization in high value-added products.

We maintain our BUY rating on the stock.

CIE Automotive (CAIL) Q2CY24 adj. consolidated PAT of INR 2.2bn was in-line with our estimate, with ~4% miss in revenue getting balanced by ~50bps beat in EBITDAM.

Based on this, we arrive at our SOTP-based TP of Rs 560/share (earlier Rs 565/share), implying an upside of 14% from the CMP.

While CIEINDIA's 1QCY24 operating performance was in line with our
estimates, higher other income drove PAT beat. A delay in the ramp-up of
orders from the customers’ end hurt revenue growth.

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